[Federal Register Volume 62, Number 164 (Monday, August 25, 1997)]
[Notices]
[Pages 45012-45013]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-22430]


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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 alteration to an existing Privacy Act system of 
records.

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SUMMARY: The Treasury Department, Internal Revenue Service, gives 
notice of the proposed alteration to Treasury/IRS 24.046--Business 
Master File (BMF), Taxpayer Services, which is subject to the Privacy 
Act of 1974, 5 U.S.C. 552a, as amended.

EFFECTIVE DATE: Comments must be received no later than September 24, 
1997. The alteration to the system of records will be effective October 
6, 1997, unless comments are received which result in a contrary 
determination.

ADDRESSES: Comments should be sent to the Office of Governmental 
Liaison and 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: John Coulter, Office of Chief Counsel, 
Income Tax and Accounting, at (202) 622-4940, or Luetta Donalds, Office 
of Payer Compliance, at (202) 622-8753, National Office, Internal 
Revenue Service.

SUPPLEMENTARY INFORMATION: The IRS is making certain changes to 
Treasury/IRS 24.046--Business Master File (BMF), Taxpayer Services. The 
alterations reflect changes that are necessary to the system to 
implement the Federal Agency Taxpayer Identification Number Matching 
Program, change the system name and title of the system owner to 
reflect the new organizational structure of the IRS, and to list new 
locations in which system records are kept.
     To improve administration of the backup withholding provision of 
Sec. 3406 of the Internal Revenue Code, IRS may inform Federal agencies 
monthly if the Employer Identification Numbers (EINs) of sole 
proprietors that IRS has on record match the records of the agencies. 
This should reduce the number of times agencies will need to impose 
backup withholding on payments, and increase compliance. IRS has added 
a new routine use and expanded the categories of individuals covered by 
the system to implement this change.

[[Page 45013]]

     The categories of individuals covered by the system have been 
expanded to include sole proprietors who file business returns.
     The categories of records in the system have been expanded to 
include ElNs/name control files which contain EINs and the associated 
IRS name controls.
     New locations where the system records are kept have been added to 
include the three locations where the TeleFile records (records about 
returns filed by telephone) are maintained. These include: the 
Cincinnati Service Center, 201 West River Center Blvd., Covington, KY 
41019; the Memphis Service Center, 3131 Democrat Road, Memphis, TN 
38118; and, the Ogden Service Center, 1160 West 1200 South Street, 
Ogden, UT 84201.
     A ``Purpose(s)'' data element is also being added to the system of 
records.
     The routine use is being altered to read: Disclosure of returns 
and return information may be made as provided by 26 U.S.C. 6103, and 
for meeting the requirements of 26 U.S.C. 3406. 26 U.S.C. 3406 
provides, in part, that the Secretary of the Treasury notify a payor 
that the TIN (Taxpayer Identification Number) furnished by the payee is 
incorrect.
     The alterations to the existing system of records are published 
below. The system notice for Treasury/IRS 24.046 was published in its 
entirety most recently in the Federal Register Vol. 60, page 56788, 
November 9, 1995.

    Dated: August 14, 1997.

Alex Rodriguez,
Deputy Assistant Secretary (Administration)

  
Treasury/IRS 24.046

System Name:
     Description of change: Delete former title. Add new title: 
``Business Master File (BMF), Taxpayer Service--Treasury/IRS''

System Location:
     Description of change: After Martinsburg Computing Center, 
Martinsburg, West Virginia 25401, replace the ``.'' with a ``;'' and 
add: ``Cincinnati Service Center, 201 West River Center Blvd., 
Covington, KY 41019; Memphis Service Center, 3131 Democrat Road, 
Memphis, TN 38118; and Ogden Service Center, 1160 West 1200 South 
Street, Ogden, UT 84201.''

Categories of Individuals Covered by The System:
     Description of change: Replace the current statement with the 
following: ``Persons in a sole proprietary role who file business tax 
returns, including Employer's Quarterly Federal Tax Returns (Form 941), 
Excise Tax Returns (Form 720), Wagering Returns (Forms 11C and 730), 
Highway Use Returns (Form 2290), and U.S. Fiduciary Returns (Form 1041) 
and Estate and Gift Taxes (Forms 706, 706NA, and 709). The latter can 
be individuals not in a sole proprietorship role.''

Categories of Records in The System:
     Description of change: Add the following statement at the end of 
the category: ``The Employer Identification Number (EIN)/Name Control 
file which contains EINs and the associated IRS name controls.''

Purpose(s):
     To increase the efficiency of tax administration, the Service 
maintains magnetic media records of tax returns filed by business 
taxpayers, and payments and assessments made to the accounts.

Routine Uses of Records Maintained in The System, Including Categories 
of Users And The Purposes of Such Uses:
     Description of change: Replace the current language with the 
following:``Disclosure of returns and return information may be made as 
provided by 26 U.S.C. 6103, and for meeting the requirements of 26 
U.S.C. 3406. 26 U.S.C. 3406 provides, in part, that the Secretary of 
the Treasury notify a payor that the TIN (Taxpayer Identification 
Number) furnished by the payee is incorrect.''

System Manager(s) And Address:
     Description of change: Remove current statement and add: 
``Official prescribing policies and practices--Chief Taxpayer Service. 
Officials maintaining the system--Internal Revenue Service Center 
Directors. (See IRS appendix A for addresses.)''
[FR Doc. 97-22430 Filed 8-22-97; 8:45 am]
BILLING CODE: 4810-30-F