[Federal Register Volume 65, Number 170 (Thursday, August 31, 2000)]
[Notices]
[Pages 53089-53090]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-22259]


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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: In accordance with the requirements of the Privacy Act of 
1974, as amended, 5 U.S.C. 552a, the Department of the Treasury, 
Internal Revenue Service, gives notice of a proposed new system of 
records entitled ``Treasury/IRS 22.062--Electronic Filing Records.''

DATES: Comments must be received no later than October 2, 2000. This 
new system of records will be effective October 10, 2000 unless the IRS 
receives comments which would 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 
(1621) at the above address, upon request.

FOR FURTHER INFORMATION CONTACT: JoAnn Blank, National Director, 
Individual Electronic Filing Division, Electronic Tax Administration, 
OP:ETA:I, Internal Revenue Service, 5000 Ellin Road, Lanham, MD 20706. 
Telephone number (202) 283-4790.

SUPPLEMENTARY INFORMATION: The proposed system will allow the IRS to 
better serve the public through more efficient administration of 
electronic filing of returns. The proposed system will include records 
about current, past, and potential electronic filing providers, and 
records concerning marketing and improving electronic filing processes. 
Records about electronic providers will be used to determine their 
suitability to participate in the electronic filing program. Certain 
records will concern why electronic providers have been rejected from 
participation, including the reasons for such rejection, or for 
suspension or expulsion from participation. Electronic providers are 
electronic return originators, electronic return transmitters, and 
individual filing software developers. Potential electronic filing 
providers are individuals to whom the IRS wants to market the benefits 
of becoming an electronic filing provider. An electronic return 
originator is: (a) An electronic return preparer who prepares returns 
for taxpayers who intend to have their returns electronically filed, or 
(b) an electronic return collector who accepts completed tax returns, 
including Forms 8453 (U.S. Individual Income Tax Declaration for 
Electronic Filing), from taxpayers who intend to have their returns 
electronically filed. An electronic return transmitter transmits the 
electronic portion of a return directly to the IRS. In order to protect 
the public interest, IRS conducts background investigations of people 
who apply to file returns electronically for others. Principals of 
firms or organizations who want to electronically file for others must 
file IRS Form 8633 (Application to Participate in the Electronic Filing 
Program). The information from Form 8633 will be used for background 
checks, which may include fingerprint checks and inquiries to the FBI 
asking whether the applicant has a criminal history. Records in the 
system will include records with information from people who volunteer 
their opinions concerning how to improve electronic filing procedures 
and ease of use. Records may also include information about people who 
attend seminars or otherwise express an interest in electronic filing 
so they can receive information about the benefits of electronic 
filing.
    The proposed new system of records entitled ``Electronic Filing 
Records--Treasury/IRS 22.062'' is published in its entirety below.

    Dated: August 23, 2000.
W. Earl Wright, Jr.,
Director, Management and Administrative Programs.
Treasury/IRS 22.062

System Name:
    Electronic Filing Records--Treasury/IRS.

System Location:
    IRS National Office, District Offices, Service Centers, and 
Computing Centers. (See IRS Appendix A for addresses.)

Categories of Individuals Covered by the System:
    Electronic return providers (electronic return preparers, 
electronic return collectors, electronic return originators, electronic 
filing transmitters, individual filing software developers) who have 
applied to participate, are participating, or have been rejected, 
expelled or suspended from participation in the electronic filing 
program (including Volunteer Income Tax Assistance (VITA) volunteers). 
Individuals who attend, or have indicated interest in attending, 
seminars and marketing programs to encourage electronic filing and 
improve electronic filing programs (including individuals who provide 
opinions or suggestions to improve electronic filing programs), or who 
otherwise indicate interest in participating in electronic filing 
programs.

Categories of Records in the System:
    Records pertaining to individual electronic filing providers 
including applications to participate in electronic filing, credit 
reports, conduct reports, law enforcement records, and other 
information from investigations into suitability for participation. 
Records pertaining to marketing electronic filing, including surveys 
and opinions about improving electronic filing programs.

Authority for Maintenance of the System:
    5 U.S.C. 301; 26 U.S.C. 6011, 6012, and 7803.

Purposes(s):
    This system will maintain records for administration and marketing 
of electronic filing programs.

[[Page 53090]]

Routine Uses of Records Maintained in the System, Including Categories 
of Users and the Purposes of Such Uses:
    Disclosure of returns and 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, 
or foreign agencies or instrumentalities responsible for investigating 
or prosecuting the violations of, or for implementing, a statute, rule, 
regulation, order, or license, where the disclosing agency becomes 
aware of a violation or potential violation of civil or criminal law or 
regulation or licensing requirements;
    (2) Disclose information to a Federal, state, or local agency 
maintaining civil, criminal, or other relevant enforcement information 
or other pertinent information, which has requested information 
relevant to or necessary to the requesting agency's or the bureau's 
hiring or retention of an individual, or issuance of a security 
clearance, license, contract, grant, or other benefit;
    (3) 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;
    (4) Provide information to a congressional office in response to an 
inquiry made at the request of the individual to whom the record 
pertains;
    (5) Provide information to third parties during the course of an 
investigation to the extent necessary to obtain information that is 
pertinent to the investigation, including credit bureaus for credit 
checks and fingerprint records to the FBI or other law enforcement 
agencies;
    (6) Provide information to the news media in accordance with 
guidelines contained in 28 CFR 50.2 which relate to an agency's 
functions relating to civil and criminal proceedings;
    (7) Provide information to contractors for use in contracted 
services for electronic filing programs;
    (8) Disclose information to state taxing authorities to promote 
joint and state electronic filing, including marketing such programs 
and enforcing the legal and administrative requirements of such 
programs;
    (9) Disclose to the public the identities (including addresses) of 
electronic return originators, electronic return preparers, electronic 
return transmitters, and individual filing software developers, who 
have been suspended, removed, or otherwise disciplined. The Service may 
also disclose the effective date and duration of the suspension, 
removal, or other disciplinary action;
    (10) Disclose information to a court, magistrate, or administrative 
tribunal in the course of presenting evidence, including disclosures to 
opposing counsel or witnesses in the course of civil discovery, 
litigation, or settlement negotiations or in connection with criminal 
law proceedings or in response to a subpoena.

Policies and Practices for Storing, Retrieving, Accessing, Retaining, 
and Disposing of Records in the System:
Storage:
    Paper and magnetic media.

Retrievability:
    By electronic filing provider name or tax identification number 
(SSN, EIN, EFIN, PTIN) or document control number (DCN).

Safeguards:
    Access controls will not be less than those provided for by the 
Manager's Security Handbook, IRM 1(16)12, and the Automated Information 
System Security Handbook, IRM 2.10.

Retention and Disposal:
    Records are maintained in accordance with Records Disposition 
Handbook, IRM 1.15.

System Manager(s) and Address:
    Official prescribing policies and practices: Assistant Commissioner 
(Electronic Tax Administration). Officials maintaining the system: 
Assistant Commissioner (Electronic Tax Administration), Business 
Systems Modernization Executive/Chief Information Officer, Regional 
Commissioners, District Directors, IRS Submission Processing Center 
Directors, Customer Service Center Directors, Computing Center 
Directors. (See IRS Appendix A for addresses.)

Notification Procedure:
    Individuals wishing to be notified if they are named in this system 
of records, or to gain access to records maintained in the system of 
records may inquire in accordance with instructions appearing at 31 CFR 
part 1, subpart C, appendix B. Inquiries should be addressed to the 
appropriate official maintaining the system (above).

Record Access Procedures:
    See ``Notification procedure'' above.

Contesting Record Procedures:
    26 U.S.C. 7852(e) prohibits Privacy Act amendment of tax records. 
See ``Notification procedure'' above for seeking amendment to records 
that are not tax records.

Record Source Categories:
    Information in this system is obtained from the following sources: 
(1) Electronic filing providers; (2) informants and third party 
information; (3) city and state governments; (4) IRS and other Federal 
agencies; (5) professional organizations; (6) business entities; and 
(7) participants in marketing efforts or who have otherwise indicated 
interest in electronic filing programs.

Exemptions Claimed for the System:
    None.

[FR Doc. 00-22259 Filed 8-30-00; 8:45 am]
BILLING CODE 4830-01-P