[Federal Register Volume 61, Number 175 (Monday, September 9, 1996)]
[Notices]
[Pages 47547-47548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: X96-10909]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Privacy Act of 1974; System of Records

AGENCY: Internal Revenue Service, Treasury.

ACTION: Notice of Proposed New Privacy Act System of Records.

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SUMMARY: The Treasury Department, Internal Revenue Service, gives 
notice of a proposed new system of records entitled Automated 
Information Analysis System--Treasury/IRS 46.050, which is subject to 
the Privacy Act of 1974, 5 U.S.C. 552a. This proposed system has been 
developed to assist the Internal Revenue Service in accomplishing its 
mission of encouraging and achieving the highest possible degree of 
voluntary compliance with the Internal Revenue laws. It is further 
proposed to have the system exempt from meeting certain requirements of 
the Privacy Act of 1974.

DATES: Comments must be received no later than October 9, 1996. This 
new system of records will be effective October 21, 1996, unless 
comments are received which result in a contrary determination.

ADDRESSES: Comments should be sent to the Office of Disclosure, 
Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC 
20224. Comments will be made available for inspection and copying in 
the Freedom of Information Reading Room upon request.

FOR FURTHER INFORMATION CONTACT: Wayne Loving, Director, Office of 
Policy and Information Division, Criminal Investigation, (202) 622-
5676.

SUPPLEMENTARY INFORMATION:
     The Internal Revenue Service's Criminal Investigation Division 
(CID) seeks to establish and maintain the proposed new system of 
records as a more efficient means of performing its responsibilities. 
Among Criminal Investigation's principal responsibilities are probing 
and referring for prosecution criminal cases centering largely on 
violations of tax laws, including income tax evasion, refund fraud, and 
other crimes contributing to the Federal tax gap. Criminal 
Investigation also investigates violations of certain money laundering 
laws. The Automated Information Analysis System will automatically 
identify potential leads to money laundering and income tax violations 
which might not otherwise surface through traditional information 
gathering efforts. The Automated Information Analysis System only 
relies upon internal data included in other Privacy Act systems of 
records. This action should encourage individuals and businesses to 
fully comply with the tax laws and other reporting requirements and aid 
Internal Revenue's Criminal Investigation Division in identifying 
potential violations.
     The Automated Information Analysis System is designed to provide 
the Internal Revenue Service with high quality investigative leads to 
tax noncompliance at a substantial savings.
     The Automated Information Analysis System produces an output 
record that identifies leads appropriate for further evaluation by 
field special agents. Once the output record is sent to the District 
Criminal Investigation office that will investigate the leads, it will 
be covered by system of records Treasury/IRS 46.009, Centralized 
Evaluation and Processing of Information Items (CEPIIs).
     In a separate publication, the Internal Revenue Service is also 
giving public notice of a proposed rule to exempt this system of 
records from certain provisions of 5 U.S.C. 552a pursuant to 
subsections (j)(2), and (k)(2) of the same section.
 Treasury/IRS 46.050
     Automated Information Analysis System - Treasury/IRS.

[[Page 47548]]

     Detroit Computing Center, 1300 John C. Lodge Drive, Detroit, 
Michigan 48226 and Automated Criminal Investigation Office, 7940 
Kentucky Drive, Boone County, Kentucky 41042.
     Taxpayers and other individuals involved in financial transactions 
which require the filing of information reflected in the Categories of 
records below.
     The information included in the Automated Information Analysis 
System is from reported income and tax information on the Individual 
Master File (IMF)--Treasury/IRS 24.030; Individual Returns Files, 
Adjustments and Miscellaneous Documents File--Treasury/IRS 22.034. The 
Automated Information Analysis System also includes information from 
such sources as: Currency Transaction Reports (CTRs), Currency and 
Monetary Instrument Reports (CMIR's), Bank Secrecy Reports File, 
Foreign Bank Account Reports (FBARs), Forms 8300 (Currency Received in 
Trade or Business),--Treasury/CS .067; the Taxpayer Delinquent Account 
Files (TDA)--Treasury/IRS 26.019, which includes adjustments and 
payment tracer files and collateral files; Taxpayer Delinquency 
Investigation Files (TDI)--Treasury/IRS 26.020, which includes taxpayer 
information on delinquent returns; the Examination Administrative 
File--Treasury/IRS 42.001, and Casino Transaction Reports from the 
Detroit Computing Center.
     5 U.S.C. 301; 26 U.S.C. 7602, 7801, and 7802.
     The purpose is to maintain records which identify transaction 
patterns that are indicative of criminal and/or civil noncompliance 
with Federal income tax and money laundering laws and to simultaneously 
evaluate diverse data sources.
     Disclosure of returns and return information may be made only as 
provided by 26 U.S.C. 6103.
     Electronic and Magnetic Media.
     Records are retrievable by name, address, and social security 
number.
     All Criminal Investigation personnel accessing the system will 
have successfully passed a background investigation. Criminal 
Investigation will furnish information from the system of records to 
approved personnel only on a ``need to know'' basis using passwords and 
access controls. Access control will not be less than those provided by 
the Manager's Security Handbook, IRM 1(16)12. Procedural and physical 
safeguards to be utilized include the logging of all queries and 
periodic review of the query logs; compartmentalization of information 
to restrict access to authorized personnel; encryption of electronic 
communications; intruder alarms; and 24-hour building guards.
     All records are disposed of after 4 years. Records will be 
disposed of by erasure of magnetic media.
     Official prescribing policies and practices--Assistant 
Commissioner (Criminal Investigation), National Office. Officials 
maintaining the system--Detroit Computing Center, CI Representative, 
and the Automated Criminal Investigation Office Manager, 7940 Kentucky 
Drive, Boone County, Kentucky 41042.
     This system of records may not be accessed for purposes of 
determining if the system contains a record pertaining to a particular 
individual.
     This system of records may not be accessed for purposes of 
inspection or for contest of content of records.
     26 U.S.C. 7852(e) prohibits Privacy Act amendment of tax records.
     This system of records may not be accessed for purposes of 
determining the source of the records. Records to be included all come 
from existing Treasury and Internal Revenue Service databases. The 
databases are comprised of records submitted by taxpayers, financial 
institutions, casinos and businesses pursuant to federal law.
     This system is exempt from 5 U.S.C. 552a(c)(3), (c)(4), (d)(1), 
(d)(2), (d)(3), (d)(4),(e)(1), (e)(2), (e)(3), (e)(4)(G), (H), and (I), 
(e)(5), (e)(8), (f), and (g) of the Privacy Act pursuant to 5 U.S.C. 
552a(j)(2), and (k)(2).

    Dated: August 21, 1996.

Alex Rodriguez,
Deputy Assistant Secretary (Administration)

[FR Doc.22895 Filed 9-6-96: 8:45am]
Billing Code: 4830-01-F