[Federal Register Volume 63, Number 154 (Tuesday, August 11, 1998)]
[Notices]
[Pages 42908-42910]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21401]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Privacy Act of 1974; Computer Matching Program

AGENCY: Internal Revenue Service, Treasury.

ACTION: Notice.

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SUMMARY: Pursuant to section 552a(e)(12) of the Privacy Act of 1974, as 
amended, and the Office of Management and Budget (OMB) Guidelines on 
the Conduct of Matching Programs, notice is hereby given of the conduct 
of Internal Revenue Service computer matching programs.
    In accordance with pertinent provisions of section 6103 of the 
Internal Revenue Code (IRC) of 1986, the computer matching programs 
provide Federal, State, and local agencies with tax information from 
IRS records to assist them in administering the programs and activities 
described hereafter. The purpose of these programs is to prevent or 
reduce fraud and abuse in certain Federally assisted benefit programs 
and facilitate the settlement of government claims while protecting the 
privacy interest of the subjects of the match. The matches are 
conducted on an on-going basis in accordance with the terms of the 
Computer Matching Agreement in effect with each participant as approved 
by the Data Integrity Boards of both agencies, and for the period of 
time specified in such agreement. Members of the public desiring 
specific information concerning an on-going matching activity may 
request a copy of the agreement at the address provided below.
EFFECTIVE DATES: This notice will be effective September 10, 1998.

ADDRESSES: Inquiries may be mailed to the National Director, Office of 
Governmental Liaison and Disclosure, Internal Revenue Service, 1111 
Constitution Ave., NW., Washington, DC 20224.

 FOR FURTHER INFORMATION CONTACT: M. R. Taylor, Program Manager, Office 
of FedState Relations, Internal Revenue Service, 202-622-5145.

 SUPPLEMENTARY INFORMATION: The nature, purposes and authorities for 
IRS computer matching programs are as follows:

 Matches Conducted Pursuant to IRC 6103(l)(7).

    The Service is required, upon written request, to disclose current 
return information from returns with respect to unearned income from 
the Internal Revenue Service files to any Federal, State, or local 
agency administering a program listed below:
    (i) A State program funded under part A of title IV of the Social 
Security Act;
    (ii) Medical assistance provided under a State plan approved under 
title XIX of the Social Security Act;
    (iii) Supplemental security income benefits under title XVI of the 
Social Security Act, and federally administered supplementary payments 
of the type described in section 1616(a) of such Act (including 
payments pursuant to an agreement entered into under section 212(a) of 
Pub. L. 93-66);
    (iv) Any benefits provided under a State plan approved under title 
I, X, XIV, or XVI of the Social Security Act (as those titles apply to 
Puerto Rico, Guam, and the Virgin Islands);
    (v) Unemployment compensation provided under a State law described 
in section 3304 of the Internal Revenue Code;
    (vi) Assistance provided under the Food Stamp Act of 1977;
    (vii) State-administered supplementary payments of the type 
described in section 1616(a) of the Social Security Act (including 
payments pursuant to an agreement entered into under section 212(a) of 
Pub. L. 93-66);
    (viii)(I) Any needs-based pension provided under Chapter 15 of 
title 38, United States Code, or under any other law administered by 
the Secretary of Veterans Affairs;
    (II) Parents' dependency and indemnity compensation provided under 
section 1315 of title 38, United States Code;
    (III) Health-care services furnished under sections 1710(a)(1)(I), 
1710(a)(2), 1710(b) and 1712(a)(2)(B) of U.S.C. title 38;
    (IV) Compensation paid under chapter 11 of title 38, United States 
Code, at the 100 percent rate based solely on unemployability and 
without regard to the fact that the disability or disabilities are not 
rated as 100 percent disabling under the rating schedule. Only return 
information from returns with respect to net earnings from self-
employment and wages may be disclosed under this paragraph for use with 
respect to any program described in (viii)(IV); and
    (ix) Any housing assistance program administered by the Department 
of Housing and Urban Development that involves initial and periodic 
review of an applicant's or participant's income, except that return 
information may be disclosed under this clause only on written request 
by the Secretary of Housing and Urban Development and only for use by 
officers and employees of the Department of Housing and Urban 
Development with respect to applicants for and participants in such 
programs.

Public Law 105-34, section 1023(a) (August 5, 1997) extended the 
termination date for clause (viii) from September 30, 1998 to September 
30, 2003. Public Law 105-65, section 542(b) (October 27, 1997) repealed 
the termination clause for clause (ix).
    Information is disclosed by the IRS only for the purpose of, and to 
the extent necessary in, determining eligibility for, or the correct 
amount of, benefits under the aforementioned programs.
    The return information is extracted on a monthly basis from the 
Internal Revenue Service Wage and Information Returns Processing File 
(Treasury/IRS 22.061 (IRP)) for the latest tax year. This file contains 
information returns (e.g., Forms 1099-DIV, 1099-INT and W-2G) filed by 
payers of income.
    Federal agencies expected to participate in (l)(7) matches and 
their Privacy Act systems of records are:
    1. Department of Housing and Urban Development, Office of Public 
and Indian Housing (Tenant Assistance and Contract Verification Data 
System, HUD/H-11);
    2. Department of Veterans Affairs, Veterans Benefits Administration 
(Compensation, Pension, Education and Rehabilitation Records, 58 VA 21/
22;
    3. Department of Veterans Affairs, Veterans Health Administration 
(Patient Medical Records-VA, 24VA136); and
    4. Social Security Administration, Office of Program Benefits 
Policy (Supplemental Security Record (SSR), HHS/SSA/OSR 90-60-0103).
    State agencies expected to participate using non--federal systems 
of records are:

 1. Alabama Department of Human Resources
 2. Alabama Medicaid Agency
 3. Alaska Department of Health and Social Services
 4. Arizona Department of Economic Security
 5. Arizona Health Care Cost Containment System
 6. Arkansas Department of Human Services
 7. California Department of Social Services
 8. Colorado Department of Human Services

[[Page 42909]]

 9. Connecticut Department of Social Services
10. Delaware Health and Social Services
11. District of Columbia Department of Human Services
12. Florida Department of Children and Families
13. Georgia Department of Human Resources
14. Guam Department of Public Health and Social Services
15. Hawaii Department of Human Services
16. Idaho Department of Health and Welfare
17. Illinois Department of Human Services
18. Indiana Family and Social Services Administration
19. Iowa Department of Human Services
20. Kansas Department of Social and Rehabilitative Services
21. Kentucky Cabinet for Families and Children
22. Louisiana Department of Health and Hospitals
23. Louisiana Department of Social Services
24. Maine Department of Human Services
25. Maryland Department of Human Resources
26. Massachusetts Department of Transitional Assistance
27. Massachusetts Division of Medical Assistance
28. Michigan Family Independence Agency
29. Minnesota Department of Human Services
30. Mississippi Division of Medicaid
31. Mississippi Department of Human Services
32. Missouri Department of Social Services
33. Montana Department of Public Health and Human Services
34. Nebraska Department of Health and Human Services
35. Nevada Department of Human Resources
36. New Hampshire Department of Health and Human Services
37. New Jersey Department of Human Services
38. New Mexico Human Services Department
39. New York Office of Temporary and Disability Assistance
40. North Carolina Department of Health and Human Services
41. North Dakota Department of Human Services
42. Ohio Department of Human Services
43. Oklahoma Department of Human Services
44. Oregon Department of Human Resources
45. Pennsylvania Department of Public Welfare
46. Puerto Rico Department of the Family
47. Puerto Rico Department of Health
48. Rhode Island Department of Human Services
49. South Carolina Department of Social Services
50. South Dakota Department of Social Services
51. Tennessee Department of Human Services
52. Texas Department of Human Services
53. Utah Department of Health
54. Utah Department of Workforce Services
55. Vermont Department of Social Welfare
56. Virgin Islands Bureau of Health Insurance and Medical Assistance
57. Virgin Islands Department of Human Services
58. Virginia Department of Social Services
59. Washington Department of Social and Health Services
60. West Virginia Department of Human Services
61. Wisconsin Department of Workforce Development
62. Wyoming Department of Family Services

 Matches Conducted Pursuant to IRC 6103(m)(2).

    (A) In general, except as provided in subparagraph (B), the Service 
may, upon written request, disclose the mailing address of a taxpayer 
for use by officers, employees, or agents of a Federal agency for 
purposes of locating such taxpayer to collect or compromise a Federal 
claim against the taxpayer in accordance with sections 3711, 3717, and 
3718 of title 31.
    (B) In the case of an agent of a Federal agency which is a consumer 
reporting agency (within the meaning of section 603(f) of the Fair 
Credit Reporting Act, 15 U.S.C. 1681a(f)), the mailing address of a 
taxpayer may be disclosed to such agent under subparagraph (A) only for 
the purpose of allowing such agent to prepare a commercial credit 
report on the taxpayer for use by such Federal agency in accordance 
with sections 3711, 3717, and 3718 of title 31.
    The IRS information provided is extracted weekly from the 
Individual Master File (IMF) (Treasury/IRS 24.030).
    Federal agencies expected to participate in (m)(2) matches and 
their Privacy Act systems of records are:
    1. Department of Housing and Urban Development (Accounting Records 
(HUD/DEPT-2));
    2. National Institutes of Health (IRS Address Request System 
(116841));
    3. Social Security Administration (Supplemental Security Income 
Record (HHS/SSA/OSR 09-60-0103); and Master Beneficiary Record (HHS/
SSA/OSR 09-60-0090));
    4. Department of Education Federal Family Education Loans Division, 
title IV Program File (18-40-0024); and
    5. Department of Veterans Affairs, Accounts Receivable Records--VA 
(88VA244).

Matches Conducted Pursuant to IRC 6103(m)(4).

    In general, upon written request from the Secretary of Education, 
the Service may disclose the mailing address of any taxpayer who owes 
an overpayment of a grant awarded to such taxpayer under subpart 1 of 
part A of title IV of the Higher Education Act of 1965, or who has 
defaulted on a loan made under part B, D, or E of title IV of the 
Higher Education Act of 1965 or made pursuant to section 3(a)(1) of the 
Migration and Refugee Assistance Act of 1962 to a student at an 
institution of higher education. This section further provides for the 
redisclosure by the Secretary of Education of a taxpayer's mailing 
address to any lender, or any State or nonprofit guarantee agency, 
participating under part (B) or (D) of title IV of the Higher Education 
Act of 1965, or any educational institution with which the Secretary of 
Education has an agreement under subpart 1 of part A, or part D, or E, 
of title IV of such Act. Redisclosure is made by the Secretary of 
Education for use only by officers, employees, or agents of such 
lender, guarantee agency, or institution whose duties relate to the 
collection of student loans for purposes of locating individuals who 
have defaulted on student loans made under such program for purposes of 
collecting such overpayment or loan.
    The IRS information provided is extracted from the IMF (Treasury/
IRS 24.030). The U.S. Department of Education matches the title IV 
Program File [18-40-0024] with the IMF.

Matches Conducted Pursuant to IRC 6103(m)(5).

    Upon written request from the Secretary of Health and Human 
Services (HHS), the Service may disclose the mailing address of any 
taxpayer who has defaulted on a loan made under part C of title VII of 
the Public Health Service Act or under subpart II of part B of title 
VIII of such Act, for use only by officers, employees, or agents of the 
Department of Health and Human Services for purposes of locating such 
taxpayer for purposes of collecting such loan. This section also 
provides for the redisclosure by the Secretary of HHS of a taxpayer's 
mailing address to any

[[Page 42910]]

school with which the Secretary has an agreement under subpart II of 
part C of title VII of the Public Health Service Act, or subpart II of 
part B of title VIII of such Act, or any eligible lender (within the 
meaning of section 737(4) of such Act) participating under subpart I of 
part C of title VII of such Act. Redisclosure is made by the Secretary 
of HHS for use only by officers, employees, or agents of such school or 
eligible lender whose duties relate to the collection of student loans 
for purposes of locating individuals who have defaulted on student 
loans made under such subparts for the purposes of collecting such 
loans.
    The IRS information provided is extracted from the IMF (Treasury/
IRS 24.030). The Department of Health and Human Services matches the 
Public Health Service and National Health Service Corps Provider 
Records System (HHS/HRSA/BHCDA 09-15-0037) with the IMF.

    Dated: August 4, 1998.
Shelia Y. McCann,
Deputy Assistant Secretary (Administration).
[FR Doc. 98-21401 Filed 8-10-98; 8:45 am]
BILLING CODE: 4810-30-P