[Federal Register Volume 65, Number 77 (Thursday, April 20, 2000)]
[Notices]
[Pages 21236-21238]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-9870]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Privacy Act of 1974, as Amended; 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 ``Criminal 
Investigation Audit Trail Records System--Treasury/IRS 46.051,'' which 
is subject to the Privacy Act of 1974, 5 U.S.C. 552a. This proposed 
system has been developed to enable the Criminal Investigation Division 
to analyze computer system usage and identify potential security 
violations. 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 May 22, 2000. This new 
system of records will be effective May 30, 2000, 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: Fu-An Chao, Chief, Systems Development 
and Support, Criminal Investigation, (202) 622-7803.

SUPPLEMENTARY INFORMATION: The Internal Revenue Service's Criminal 
Investigation Division seeks to establish and maintain the proposed new 
system of records as a more comprehensive means of performing its 
responsibilities.
    Criminal Investigation carries out many law enforcement related 
functions. Among Criminal Investigation's principal responsibilities 
are investigating 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.
    Many of these law enforcement related functions have been automated 
and are available on Criminal Investigation computer systems. To ensure 
the integrity of the system data, audit records are maintained to 
identify all events that occur while users attempt to access or use the 
computer system or the applications. This system will identify the 
sequence of events that occurred while an individual is logged onto the 
system.
    Due to the nature of information collected, the Criminal 
Investigation Audit Trail Records System will automatically identify 
law enforcement related information.
    The Criminal Investigation Audit Trail Records System produces an 
output record that identifies user names, times logged into the system, 
and sequences of events which occurred, while logged into the system, 
or attempting to log onto the system, and investigatory files accessed. 
Once the output record is created, it is sent to the National Office 
for review. This enables the security staff to determine if any 
irregular activities or patterns are occurring. Individuals who are 
detected by the audit logs of irregular activities or patterns may be 
adversely affected up to and including prosecution for unauthorized 
access to government records.
    The Internal Revenue Service is 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). A proposed rule 
is being published separately in the Federal Register. The exemption is 
intended to comply with legal prohibitions against the disclosure of 
certain kinds of information and to protect certain information on 
individuals maintained in this system of records.
    The new system of records report, as required by 5 U.S.C. 552a (r) 
of the Privacy Act, has been submitted to the Committee on Government 
Reform in the House of Representatives, the

[[Page 21237]]

Committee on Governmental Affairs in the Senate, and the Office of 
Management and Budget, pursuant to Appendix I to OMB Circular A-130, 
``Federal Agency Responsibilities for Maintaining Records About 
Individuals,'' dated February 8, 1996.
    The proposed IRS system of records, ``Criminal Investigation Audit 
Trail Records System--Treasury /IRS 46.051,'' is published in its 
entirety below.

    Dated: March 7, 2000.
Shelia Y. McCann,
Deputy Assistant Secretary (Administration).

Treasury /IRS 46.051

System Name:
    Criminal Investigation Audit Trail Records System--Treasury /IRS 
46.051

System Location:
    Records are located at the Internal Revenue Service, 1111 
Constitution Avenue, NW, Washington, DC 20224. Other locations of these 
records are: Automated Criminal Investigation Project Office, located 
in Florence, Kentucky; Internal Revenue Service Areas of Investigation, 
Criminal Investigation District Offices, and Internal Revenue Service 
Posts of Duty. (See IRS Appendix A for addresses.)

Categories of Individuals Covered by the System:
    Individuals who use or attempt to use the IRS Criminal 
Investigation computer systems; log onto the Criminal Investigation 
system; use the Criminal Investigation applications; use the Criminal 
Investigation operating system, or log off the Criminal Investigation 
computer are covered by this system.

Categories of Records in The System:
    This is an electronic data base which captures system use 
information such as: date and time a user initiated or attempted to 
initiate a session on the system; date and time of all unsuccessful 
system accesses; date and time of data or system file accesses; date 
and time of privileged security actions on the system, and date and 
time of system logoff by a user.
    Criminal Investigation application audit trail records may contain 
information regarding system or application access for any of the 
following Criminal Investigation files: CIMIS, 46.002; Confidential 
Informants, Criminal Investigation Division, 46.003; Electronic 
Surveillance File, 46.005; and Centralized Evaluation and Processing of 
Information Items, 46.009.

Authority for Maintenance of the System:
    5 U.S.C. 301; 26 U.S.C. 6103, 7213, 7213A, 7214, 7602, 7608, 7801, 
and 7803; 18 U.S.C. 1030(a)(2)(B).

Purpose:
    The Criminal Investigation Division of the Internal Revenue Service 
established this system to enable the division to monitor and analyze 
usage of its computer system. The system will provide information 
showing: (1) The system users; (2) the times of use for each user; (3) 
the areas of the system being accessed by each user; (4) unauthorized 
access by Criminal Investigation employees; and (5) access, or 
attempted access, by persons other than Criminal Investigation 
employees. System uses include reading, adding, deleting, and/or 
modifying data and system records.

Routine Uses of Records Maintained in the System, Including Categories 
of Users and the Purposes of Such Use:
    Disclosure of records and information from this system may be 
disclosed only as provided by 26 U.S.C. 6103 and 18 U.S.C. 
1030(a)(2)(B). Records other than returns and return information may be 
used:
    (1) To disclose pertinent information to appropriate federal, 
state, local, or foreign agencies responsible for investigating or 
prosecuting the violation or potential violation of civil or criminal 
law or regulations.
    (2) To 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) To provide information to a congressional office in response to 
an inquiry made at the request of the individual to whom the record 
pertains.
    (4) To provide information to third parties during the course of an 
investigation to the extent necessary to obtain information pertinent 
to the investigation.
    (5) To 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) To disclose to the Department of Justice for the purpose of 
litigating an action or seeking legal advice.
    (7) To disclose to a 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 and magnetic media and paper.

Retrievability:
    Records are retrievable by user name.

Safeguards:
    Protection and control of any sensitive but unclassified 
information or records are in accordance with Department of the 
Treasury Security Manual, TD P 71-10 and Internal Revenue Manual, IRM 
2.1.10, Automated Information System Security, and Internal Revenue 
Manual, IRM 1(16)00, Physical Security Handbook, as well as internal CI 
Policy. The Criminal Investigation Audit Trail Records System is 
contained in an operating system, which has been rated as C2 compliant. 
All system access is controlled with the use of passwords and only 
Criminal Investigation personnel who have been assigned a ``need-to-
know'' can access system data. The computers that operate the System 
are in secure space, housed in a Federal Building with 24-hour 
security.

Retention and Disposal:
    Records are maintained, administered and disposed of in accordance 
with Internal Revenue Manual (IRM) 1.15; 1.15.1 Records Administration 
Handbook, 1.15.2 Records Disposition Handbook, 1.15.3 General Records 
Handbook, and 1.15.4 Files Management Handbook.

System Manager(s) and Address:
    The official prescribing policies and practices is the Assistant 
Commissioner, Criminal Investigation, Internal Revenue Service, 1111 
Constitution Avenue, NW, Washington, DC, 20224. The

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organization responsible for maintaining the system is Systems 
Development and Support, Criminal Investigation Representative.

Notification Procedure:
    This system of records may not be accessed for purposes of 
determining if the system contains a record pertaining to a particular 
individual.

Record Access Procedures:
    This system of records may not be accessed for purposes of 
inspection by an individual to determine if there exists a record 
pertaining to him or her, and/or to view the contents of the records.

Contesting Record Procedures:
    26 U.S.C. 7852(e) prohibits Privacy Act amendment of tax records.

Record Source Categories:
    This system of records contains investigatory material compiled for 
law enforcement purposes whose sources need not be reported.

Exemptions Claimed for the System:
    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).

[FR Doc. 00-9870 Filed 4-19-00; 8:45 am]
BILLING CODE 4830-01-P