[Federal Register Volume 65, Number 182 (Tuesday, September 19, 2000)]
[Notices]
[Pages 56612-56614]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-24031]


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DEPARTMENT OF THE TREASURY

Financial Management Service


Privacy Act of 1974, As Amended; System of Records

AGENCY: Financial Management Service, Treasury.

ACTION: Notice of alteration of Privacy Act system of records.

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SUMMARY: The Department of the Treasury, Financial Management Service 
(FMS), gives notice of a proposed alteration to the system of records 
entitled ``Debt Collection Operations System-Treasury/FMS .014,'' which 
is subject to the Privacy Act of 1974, as amended (5 U.S.C. 552a). The 
system notice was last published in its entirety in the Federal 
Register Vol. 63, page 69840 on December 17, 1998.

DATES: Comments must be received no later than October 19, 2000. The 
proposed system of records will be effective October 30, 2000 unless 
FMS receives comments which would result in a contrary determination.

ADDRESSES: Comments must be submitted to the Debt Management Services, 
Financial Management Service, 401 14th Street, SW., Room 448B, 
Washington, DC 20227. Comments received will be available for 
inspection at the same address between the hours of 9 a.m. and 4 p.m. 
Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Gerry Isenberg, Financial Management 
Service, Debt Management Services, (202) 874-7131.

SUPPLEMENTARY INFORMATION: The Financial Management Service (FMS) 
operates several programs to facilitate collection or resolution of 
debts owed to the Federal Government and states, including past due 
support being enforced by states. These programs are the Treasury 
Offset Program, which collects debts by offsetting or levying against 
Federal payments, and FMS' cross-servicing program, wherein Federal 
agencies refer their debts to FMS for a broad range of debt collection 
actions. In the operation of these debt collection programs, FMS 
maintains records on individuals who owe debts to the Federal 
Government and states, and such records are maintained in its ``Debt 
Collection Operations System'' system of records.
    FMS is altering this system of records to: (1) Clarify the system 
location by listing its Hyattsville, Maryland and Homewood, Alabama 
offices as locations where records in the system are maintained; (2) 
include individuals who owe unpaid Federal taxes as individuals covered 
by the system; (3) indicate that the categories of records in the 
system may vary depending on the debt collection tools utilized by FMS 
to collect the debt; (4) incorporate as authorities for maintenance of 
the system the Taxpayer Relief Act of 1997 (Pub. L. 105-34), Internal 
Revenue Service Restructuring and Reform Act of 1998 (Pub. L. 105-206), 
26 U.S.C. 6402, and 26 U.S.C. 6331, which authorize the offset of 
Federal tax refund payments to collect delinquent state tax debts and 
the collection of Federal tax debts through the continuous levying of 
non-tax payments; (5) modify the retention and disposal of records to 
include electronic records and to correctly reference National Archives 
and Records Administration (NARA) regulations, Treasury directives and 
FMS' comprehensive record schedules; and (6) correct the name of the 
system manager to ``Debt Management Services.''
    In addition, FMS has significantly altered its routine uses.
    The language and format of the routine uses have been changed so 
that the categories of users and the purposes of the disclosures from 
this system are clearer and more understandable to the public. Also, 
FMS has made specific substantive changes to the routine uses to: (1) 
Clearly indicate that disclosures for collection of the debt may be as 
a result of any authorized debt collection method, and is not limited 
to collection authorities listed in the Debt Collection Improvement Act 
of 1996 (DCIA); (2) include specific language concerning disclosure for 
the purposes of developing, enhancing, and testing computerized systems 
which facilitate debt collection processes; (3) include specific 
language covering disclosures to joint payees on Federal payments 
subject to offset so that the joint payee may assert any rights he or 
she may have in the payment; (4) revise routine use (2); and (5) delete 
a routine use regarding disclosures to the Internal Revenue Service 
because such disclosures are already statutorily authorized as 
disclosures to officers and employees of the agency (Treasury) pursuant 
to 5 U.S.C. 552a(b)(1).
    For the reasons set forth above, FMS proposes to alter system of 
records, ``Treasury/FMS .014--Debt Collection Operations System--
Treasury/Financial Management Service.'' The revised notice is being 
published in its entirety below.

    Dated: September 12, 2000.
W. Earl Wright, Jr.,
Chief Management and Administrative Programs Officer.
Treasury/FMS .014

System name:
    Debt Collection Operations System--Treasury/Financial Management 
Service.

System location:
    Records are located in the offices of and with the Debt Management 
Services staff of the Financial Management Service, U.S. Department of 
the Treasury at the following locations: Liberty Center Building 
(Headquarters), 401 14th Street, SW., Washington, DC 20227; Prince 
George's Plaza, 3700 East-West Highway, Hyattsville, Maryland, 20782; 
and the Birmingham Debt Management Operations Center, 190 Vulcan Road, 
Homewood, Alabama, 35209.

Categories of individuals covered by the system:
    Individuals who owe debts to:
    (a) The United States, through one or more of its departments and 
agencies; and/or
    (b) States, territories and commonwealths of the United States, and 
the District of Columbia (hereinafter collectively referred to as 
``states'').

Categories of records in the system:
    Debt records containing information about the debtor(s), the type 
of debt, the governmental entity to which the debt is owed, and the 
debt collection tools utilized to collect the debt. The records may 
contain identifying information, such as name(s) and taxpayer 
identifying number (i.e., social security number or employer 
identification number); debtor contact information, such as work and 
home address, and work and home telephone numbers; and name of employer 
and employer address. Debts include unpaid taxes, loans, assessments, 
fines, fees, penalties, overpayments, advances, extensions of credit 
from sales of goods or services, and other amounts of money or property 
owed to, or collected by, the Federal Government or a state, including 
past

[[Page 56613]]

due support which is being enforced by a state.
    The records also may contain information about: (a) The debt, such 
as the original amount of the debt, the debt account number, the date 
the debt originated, the amount of the delinquency or default, the date 
of delinquency or default, basis for the debt, amounts accrued for 
interest, penalties, and administrative costs, and payments on the 
account;
    (b) Actions taken to collect or resolve the debt, such as copies of 
demand letters or invoices, documents or information required for the 
referral of accounts to collection agencies or for litigation, and 
collectors' notes regarding telephone or other communications related 
to the collection or resolution of the debt; and
    (c) The referring or governmental agency that is collecting or owed 
the debt, such as name, telephone number, and address of the agency 
contact.

Authority for maintenance of the system:
    Federal Claims Collection Act of 1966 (Pub L. 89-508), as amended 
by the Debt Collection Act of 1982 (Pub L. 97-365, as amended); Deficit 
Reduction Act of 1984 (Pub L. 98-369, as amended); Debt Collection 
Improvement Act of 1996 (Pub. L. 104-134, sec. 31001); Taxpayer Relief 
Act of 1997 (Pub. L. 105-34); Internal Revenue Service Restructuring 
and Reform Act of 1998 (Pub. L. 105-206); 26 U.S.C. 6402; 26 U.S.C. 
6331; 31 U.S.C. Chapter 37 (Claims), Subchapter I (General) and 
Subchapter II (Claims of the U.S. Government).

Purpose(s):
    The purpose of this system is to maintain records about individuals 
who owe debt(s) to the United States, through one or more of its 
departments and agencies, and/or to states, including past due support 
enforced by states. The information contained in the records is 
maintained for the purpose of taking action to facilitate the 
collection and resolution of the debt(s) using various collection 
methods, including, but not limited to, requesting repayment of the 
debt by telephone or in writing, offset, levy, administrative wage 
garnishment, referral to collection agencies or for litigation, and 
other collection or resolution methods authorized or required by law. 
The information also is maintained for the purpose of providing 
collection information about the debt to the agency collecting the 
debt, to provide statistical information on debt collection operations, 
and for the purpose of testing and developing enhancements to the 
computer systems which contain the records.

Routine uses of records maintained in the system, including categories 
of users and the purposes of such uses:
    These records may be used to disclose information to:
    (1) Appropriate Federal, state, local or foreign agencies 
responsible for investigating or implementing, a statute, rule, 
regulation, order, or license;
    (2) 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, in response to a subpoena where relevant or potentially 
relevant to a proceeding, or in connection with criminal law 
proceedings;
    (3) A congressional office in response to an inquiry made at the 
request of the individual to whom the record pertains;
    (4) Any Federal agency, state or local agency, U.S. territory or 
commonwealth, or the District of Columbia, or their agents or 
contractors, including private collection agencies (consumer and 
commercial);
    a. To facilitate the collection of debts through the use of any 
combination of various debt collection methods required or authorized 
by law, including, but not limited to:
    (i) Request for repayment by telephone or in writing;
    (ii) Negotiation of voluntary repayment or compromise agreements;
    (iii) Offset of Federal payments, which may include the disclosure 
of information contained in the records for the purpose of providing 
the debtor with appropriate pre-offset notice and to otherwise comply 
with offset prerequisites, to facilitate voluntary repayment in lieu of 
offset, and to otherwise effectuate the offset process;
    (iv) Referral of debts to private collection agencies, to Treasury-
designated debt collection centers, or for litigation;
    (v) Administrative and court-ordered wage garnishment;
    (vi) Debt sales;
    (vii) Publication of names and identities of delinquent debtors in 
the media or other appropriate places; and
    (viii) Any other debt collection method authorized by law;
    b. To conduct computerized comparisons to locate Federal payments 
to be made to debtors;
    c. To conduct computerized comparisons to locate employers of, or 
obtain taxpayer identifying numbers or other information about, an 
individual for debt collection purposes;
    d. To collect a debt owed to the United States through the offset 
of payments made by states, territories, commonwealths, or the District 
of Columbia;
    e. To account or report on the status of debts for which such 
entity has a financial or other legitimate need for the information in 
the performance of official duties;
    f. For the purpose of denying Federal financial assistance in the 
form of a loan or loan guaranty to an individual who owes delinquent 
debt to the United States or who owes delinquent child support that has 
been referred to FMS for collection by administrative offset;
    g. To develop, enhance and/or test database, matching, 
communications, or other computerized systems which facilitate debt 
collection processes; or
    h. For any other appropriate debt collection purpose.
    (5) The Department of Defense, the U.S. Postal Service, or other 
Federal agency for the purpose of conducting an authorized computer 
matching program in compliance with the Privacy Act of 1974, as 
amended, to identify and locate individuals receiving Federal payments 
(including, but not limited to, salaries, wages, and benefits), which 
may include the disclosure of information contained in the records for 
the purpose of requesting voluntary repayment or implementing Federal 
employee salary offset or other offset procedures;
    (6) The Department of Justice for the purpose of litigation to 
enforce collection of a delinquent debt or to obtain the Department of 
Justice's concurrence in a decision to compromise, suspend, or 
terminate collection action on a debt;
    (7) Any individual or other entity who receives Federal payments as 
a joint payee with a debtor for the purpose of providing notice of, and 
information about, offsets from such Federal payments; and
    (8) Any individual or entity:
    a. To facilitate the collection of debts through the use of any 
combination of various debt collection methods required or authorized 
by law, including, but not limited to:
    (i) Administrative and court-ordered wage garnishment;
    (ii) Report information to commercial credit bureaus;
    (iii) Conduct asset searches;
    (iv) Publish names and identities of delinquent debtors in the 
media or other appropriate places; or
    (v) Debt sales;
    b. For the purpose of denying Federal financial assistance in the 
form of a loan or loan guaranty to an individual who owes delinquent 
debt to the United

[[Page 56614]]

States or who owes delinquent child support that has been referred to 
FMS for collection by administrative offset; or
    c. For any other appropriate debt collection purpose.

Disclosure to consumer reporting agencies:
    Debt information concerning a government claim against a debtor is 
also furnished, in accordance with 5 U.S.C. 552a(b)(12) and 31 U.S.C. 
3711(e), to consumer reporting agencies, as defined by the Fair Credit 
Reporting Act, 5 U.S.C. 1681(f), to encourage repayment of an overdue 
debt.

Policies and practices for storing, retrieving, accessing, retaining, 
and disposing of records in the system:
Storage:
    Records are maintained in computer processible storage media, such 
as computer hard drives, magnetic disc, tape; in file folders; and on 
paper lists and forms.

Retrievability:
    Records are retrieved by various combinations of name, taxpayer 
identifying number (i.e., social security number or employer 
identification number), or debt account number.

Safeguards:
    All officials access the system of records on a need-to-know basis 
only, as authorized by the system manager. Procedural and physical 
safeguards are utilized, such as accountability, receipt records, and 
specialized communications security. Access to computerized records is 
limited, through use of access codes, entry logs, and other internal 
mechanisms, to those whose official duties require access. Hard-copy 
records are held in steel cabinets, with access limited by visual 
controls and/or lock system. During normal working hours, files are 
attended by responsible officials; files are locked up during non-
working hours. The building is patrolled by uniformed security guards.

Retention and disposal:
    Hard-copy records and electronic records shall be retained and 
disposed of in accordance with National Archives and Records 
Administration regulations (36 CFR Subchapter B--Records Retention); 
Treasury directives and FMS comprehensive records schedules.

System manager(s) and address:
    System Manager, Debt Management Services, Financial Management 
Service, 401 14th Street, SW., Washington, DC 20227.

Notification procedure:
    Inquiries under the Privacy Act of 1974, as amended, shall be 
addressed to the Disclosure Officer, Financial Management Service, 401 
14th Street, SW., Washington, DC 20227. All individuals making 
inquiries should provide with their request as much descriptive matter 
as is possible to identify the particular record desired. The system 
manager will advise as to whether FMS maintains the records requested 
by the individual.

Record access procedures:
    Individuals requesting information under the Privacy Act of 1974, 
as amended, concerning procedures for gaining access or contesting 
records should write to the Disclosure Officer. All individuals are 
urged to examine the rules of the U.S. Department of the Treasury 
published in 31 CFR part 1, subpart C, and appendix G, concerning 
requirements of this Department with respect to the Privacy Act of 
1974, as amended.

Contesting record procedures:
    See ``Record access procedures'' above.

Record source categories:
    Information in this system is provided by the individual on whom 
the record is maintained, Federal and state agencies to which the debt 
is owed, Federal employing agencies and other entities that employ the 
individual, Federal and state agencies issuing payments, collection 
agencies, locator and asset search companies, credit bureaus, Federal, 
state or local agencies furnishing identifying information and/or 
address of debtor information, or from public documents.

Exemptions claimed for the system:
    None.
[FR Doc. 00-24031 Filed 9-18-00; 8:45 am]
BILLING CODE 4810-35-P