[Federal Register Volume 63, Number 222 (Wednesday, November 18, 1998)]
[Notices]
[Pages 64141-64142]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30768]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Privacy Act of 1974, as Amended; System of Records

AGENCY: Internal Revenue Service, Department of the Treasury.

ACTION: Notice of proposed new system of records.

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SUMMARY: In accordance with the requirements of the Privacy Act of 
1974, as amended, 5 U.S.C. 552a, the Department of the Treasury gives 
notice of a new proposed system of records, the IRS Audit Trail Lead 
Analysis System (ATLAS).

DATES: Comments must be received no later than 30 days after the 
proposed system is published in the Federal Register (December 18, 
1998). The proposed system of records will be effective 40 days after 
the proposed system is published in the Federal Register (December 28, 
1998) unless the Service receives comments that would result in a 
contrary determination.

ADDRESSES: Comments should be sent to Office of Governmental Liaison 
and Disclosure, Internal Revenue Service, 1111 Constitution Ave., NW, 
Washington, DC. 20220. Persons wishing to review the comments should 
call 202-622-6240 to make an appointment with the Office of 
Governmental Liaison and Disclosure.

FOR FURTHER INFORMATION CONTACT: Michael Sincavage, Director, 6103/
Privacy Operations, Governmental Liaison and Disclosure, Internal 
Revenue Service at 202-622-6240.

SUPPLEMENTARY INFORMATION: This report is to give notice of a proposed 
new Internal Revenue Service (IRS) system of records entitled ``IRS 
Audit Trail Lead Analysis System (ATLAS),'' which is subject to the 
Privacy Act of 1974, 5 U.S.C. 552a, as amended. The Service is 
establishing ATLAS to detect and counter unauthorized access, use, 
fraud and abuse of tax return information. This system provides 
protection by monitoring and tracking, through analysis of audit logs, 
accesses to and use of IRS electronic records. Outside of IRS 
Information Systems, the Office of the Chief Inspector/Treasury Office 
of Inspector General for Tax Administration will be the principal user 
of data contained in this system of records. The Office of the Chief 
Inspector will analyze the data contained in the system of records as 
part of its mission to detect and deter fraud, waste, and abuse. The 
Integrated Data Retrieval System Security Files, Treasury/IRS 34.018, 
will be incorporated into the proposed IRS ATLAS system of records. In 
accordance with the Office of Management and Budget Circular A-130, the 
notice covering Treasury/IRS 34.018 will be deleted from the IRS's 
inventory of systems of records on the date Treasury/IRS 34.020 becomes 
effective. The proposed system of records is published in its entirety 
below.

    Dated: November 10, 1998.
Shelia Y. McCann,
Deputy Assistant Secretary (Administration).
Treasury/IRS 34.020

SYSTEM NAME:
    IRS Audit Trail Lead Analysis System (ATLAS)-Treasury/IRS.

SYSTEM LOCATION:
    The ATLAS is located in an IRS facility in West Virginia. The users 
of the system are located in a facility in Ohio.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    (1) IRS employees and contractors who have accessed, by any means, 
tax return or other IRS information contained within an IRS information 
system (i.e., its operating system,

[[Page 64142]]

network, or data base) which processes taxpayer information. (2) 
Individual taxpayers upon whom the IRS maintains paper or electronic 
records and whose records have been accessed. (3) Individuals who have 
illegally accessed, by any means, tax return or other IRS information 
contained within an IRS information system (i.e., its operating system, 
network, or data base) which processes taxpayer information.

CATEGORIES OF RECORDS IN THE SYSTEM:
    The IRS information systems create audit logs of IRS employees or 
contractors who have accessed or other individuals who have illegally 
accessed taxpayer records. The audit logs are then processed by ATLAS 
to determine whether the accesses are consistent with the IRS policy, 
standards and practices regarding tax administration, and the 
confidentiality statutes within the U.S. Code.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    5 U.S.C. 301; 26 U.S.C. 6103, 7213, 7213A, 7214, 7608, 7801, 7802, 
and 18 U.S.C. 1030(a)(2)(B).

PURPOSE(S):
    To enable the IRS to enhance protection of sensitive tax return 
information by assuring the public that its tax information is being 
protected in an ethical and legal manner, thereby promoting voluntary 
taxpayer compliance. The system is to detect and counter unauthorized 
access, use, fraud and abuse of tax return information. The system 
provides protection by monitoring and tracking, through analysis of 
audit logs, accesses to and use of IRS electronic records.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    Disclosure of tax returns and tax return information may be made 
only as provided by 26 U.S.C. 6103. Records other than returns and 
return information may be used to:
    (1) Disclose pertinent information to appropriate Federal, State, 
local, or foreign agencies responsible for investigating or prosecuting 
the violations of, or for enforcing or implementing a statute, rule, 
regulation, order, or license, where the disclosing agency becomes 
aware of an indication of a violation or potential violation of civil 
or criminal law or regulations;
    (2) Disclose information in a proceeding before a court, 
adjudicative body, or other administrative body before which the agency 
is authorized to appear when: (a) The agency, or (b) any employee of 
the agency in his or her official capacity, or (c) any employee of the 
agency in his or her individual capacity where the Department of 
Justice or the agency has agreed to represent the employee, or (d) the 
United States, when the agency determines that litigation is likely to 
affect the agency, is a party to litigation or has an interest in such 
litigation, and the use of such records by the agency is deemed to be 
relevant and necessary to the litigation or administrative proceeding 
and not otherwise privileged;
    (3) Provide information to a congressional office in response to an 
inquiry made at the request of the individual to whom the record 
pertains;
    (4) Provide information to third parties during the course of an 
investigation to the extent necessary to obtain information pertinent 
to the investigation;
    (5) Provide information to unions recognized as exclusive 
bargaining representatives under the Civil Service Reform Act of 1978, 
5 U.S.C. 7111 and 7114, the Merit Systems Protection Board, 
arbitrators, the Federal Labor Relations Authority, and other parties 
responsible for the administration of Federal labor actions or 
grievances or conducting administrative hearings or appeals or if 
needed in the performance of other authorized duties;
    (6) Disclose information to the Department of Justice for the 
purpose of litigating an action or seeking legal advice; and
    (7) Disclose information to the defendant in a criminal 
prosecution, the Department of Justice, or a court of competent 
jurisdiction where required in criminal discovery or by the Due Process 
Clause of the Constitution.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Electronic storage, either by magnetic or optical media, and paper 
copy.

RETRIEVABILITY:
    (1) Indexed by name, social security number (SSN) or other unique 
identifier assigned to an IRS employee or contractor who has been 
granted access to an IRS computer system, or other individuals who have 
illegally accessed an application which processes taxpayer information.
    (2) Indexed by name, SSN, or other unique identifier assigned to an 
IRS employee or contractor who has been granted access to paper 
records.
    (3) Retrieved by the Taxpayer Identification Number (SSN, EIN, or 
ITIN).

SAFEGUARDS:
    Access controls will not be less than those described in TD P 71-
10, Department of Treasury Security Manual, IRM 2.1.10 Internal Revenue 
Manual-- Information Systems Security, and IRM 1(16)12 Internal Revenue 
Manual--Managers Security Handbook.

RETENTION AND DISPOSAL:
    Records are maintained in accordance with record disposition 
handbooks, IRM 1(15)59.

SYSTEM MANAGER(S) AND ADDRESS:
    Chief, Security Program Section, Telecommunication and Operations 
Division, Information Systems, Internal Revenue Service, Department of 
the Treasury, 1111 Constitution Ave., NW, Washington, DC 20220.

 NOTIFICATION PROCEDURE:
    This system of records is exempt from certain provisions of the 
Privacy Act.

RECORD ACCESS PROCEDURES:
    This system of records is exempt from certain provisions of the 
Privacy Act and may not be accessed for the purpose of determining if 
the system contains a record pertaining to a particular individual.

CONTESTING RECORD PROCEDURES:
    This system of records is exempt and may not be accessed for 
purposes of inspection or contest of record contents. Also, 26 U.S.C. 
7852(e) prohibits Privacy Act amendment of tax records.

RECORD SOURCE CATEGORIES:
    This system of records is exempt from the Privacy Act provision 
which requires that record source categories be reported. (See 
``Exemptions Claimed for the System,'' below.)

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    This system is exempt from 5 U.S.C. 552a(c)(3), (d)(1), (d)(2), 
(d)(3), (d)(4), (e)(1), (e)(4)(G), (H) and (I), and (f) of the Privacy 
Act pursuant to 5 U.S.C. 552a(k)(2). (see 31 CFR 1.36)

[FR Doc. 98-30768 Filed 11-17-98; 8:45 am]
BILLING CODE 4830-01-P