[Federal Register Volume 66, Number 231 (Friday, November 30, 2001)]
[Proposed Rules]
[Pages 59754-59755]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-29710]


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DEPARTMENT OF THE TREASURY

31 CFR Part 1


Internal Revenue Service: Privacy Act; Proposed Implementation

AGENCY: Department of the Treasury.

ACTION: Proposed rule.

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SUMMARY: In accordance with the requirements of the Privacy Act of 
1974, 5 U.S.C. 552a, as amended, the Department of the Treasury, 
Internal Revenue Service (IRS) gives notice of a proposed rule to 
exempt a new system of records entitled ``Treasury/IRS 60.000--Employee 
Protection System Records'' from certain provisions of the Privacy Act. 
The exemptions are intended to comply with the legal prohibitions 
against the disclosure of certain kinds of information and to protect 
certain information, about individuals, maintained in this system of 
records.

DATES: Comments must be received no later than December 31, 2001.

ADDRESSES: Please submit comments to Office of Governmental Liaison and 
Disclosure, Internal Revenue Service, 1111 Constitution Ave., NW., 
Washington, DC 20224, CL:GLD:D. Persons wishing to review the comments 
should call (202) 622-5164 to make an appointment. This is not a toll 
free number.

FOR FURTHER INFORMATION CONTACT: Chief, Office of Employee Protection, 
Internal Revenue Service, 477 Michigan Avenue, Detroit, Michigan 48226, 
telephone (313) 628-3742. This is not a toll free number.

SUPPLEMENTARY INFORMATION: Under 5 U.S.C. 552a(k)(2), the head of an 
agency may promulgate rules to exempt a system of records from certain 
provisions of 5 U.S.C. 552a, if the system is investigatory material 
compiled for law enforcement purposes. The IRS compiles records in this 
system for law enforcement purposes. Treasury/IRS 60.000-Employee 
Protection System Records, contains records that enable the IRS to 
investigate incidents in which individuals assault, harass, or 
otherwise threaten IRS employees engaged in the assessment and 
collection of taxes. The IRS will use the information to ensure the 
protection of IRS employees and to notify IRS employees of the need to 
approach a taxpayer with caution.
    The IRS is hereby giving notice of a proposed rule to exempt 
Treasury/IRS 60.000-Employee Protection System Records, from certain 
provisions of the Privacy Act pursuant to 5 U.S.C. 552a(k)(2). The 
proposed exemption is from provisions 552a(c)(3), (d)(1), (d)(2), 
(d)(3), (d)(4), (e)(1), (e)(4)(G), (H), (I), and (f) because the system 
contains investigatory material compiled for law enforcement purposes. 
The following are the reasons why this system of records maintained by 
the IRS is exempt pursuant to 5 U.S.C. 552a(k)(2) of the Privacy Act of 
1974.
    (1) 5 U.S.C. 552a(c)(3). This provision of the Privacy Act provides 
for the release of the disclosure accounting required by 5 U.S.C. 
552a(c)(1) and (2) to the individual named in the record at his/her 
request. The reasons for exempting this system of records from the 
foregoing provision are:
    (i) The release of disclosure accounting would put the subject of 
an investigation on notice that an investigation exists and that such 
person is the subject of that investigation.
    (ii) Such release would provide the subject of an investigation 
with an accurate accounting of the date, nature, and purpose of each 
disclosure and the name and address of the person or agency to whom the 
disclosure was made. The release of such information to the subject of 
an investigation would provide the subject with significant information 
concerning the nature of the investigation and could result in the 
altering or destruction of documentary evidence, the improper 
influencing of witnesses, and other activities that could impede or 
compromise the investigation.
    (iii) Release to the individual of the disclosure accounting would 
alert the individual as to which agencies were investigating the 
subject and the scope of the investigation and could aid the individual 
in impeding or

[[Page 59755]]

compromising investigations by those agencies.
    (2) 5 U.S.C. 552a(d)(1), (d) (2), (d)(3), (d)(4), (e)(4)(G), (H), 
and (f). These provisions of the Privacy Act relate to an individual's 
right to be notified of the existence of records pertaining to such 
individual; requirements for identifying an individual who requested 
access to records; the agency procedures relating to access to records 
and the contest of the information contained in such records and the 
administrative remedies available to the individual in the event of 
adverse determinations by an agency concerning access to or amendment 
of information contained in record systems. The reasons for exempting 
this system of records from the foregoing provisions are as follows: To 
notify an individual at the individual's request of the existence of an 
investigative file pertaining to such individual or to grant access to 
an investigative file pertaining to such individual could interfere 
with investigative and enforcement proceedings; deprive co-defendants 
of a right to a fair trial or an impartial adjudication; constitute an 
unwarranted invasion of the personal privacy of others; disclose the 
identity of confidential sources and reveal confidential information 
supplied by such sources; and disclose investigative techniques and 
procedures.
    (3) 5 U.S.C. 552a(e)(1). This provision of the Privacy Act requires 
each agency to maintain in its records only such information about an 
individual as is relevant and necessary to accomplish a purpose of the 
agency required to be accomplished by statute or executive order. The 
reasons for exempting this system of records from the foregoing are as 
follows:
    (i) The IRS will limit its inquiries to information that is 
necessary for the protection of IRS employees engaged in the assessment 
and collection of taxes. However, an exemption from the foregoing is 
needed because, particularly in the early stages of an investigation, 
it is not possible to determine the relevance or necessity of specific 
information.
    (ii) Relevance and necessity are questions of judgment and timing. 
What appears relevant and necessary when first received may 
subsequently be determined to be irrelevant or unnecessary. It is only 
after the information is evaluated that the relevance and necessity of 
such information can be established with certainty.
    (iii) Not all violations of law discovered by the IRS fall within 
its investigative jurisdiction. To promote effective law enforcement, 
the IRS may disclose such violations to other law enforcement agencies, 
including State, local and foreign agencies that have jurisdiction over 
the offenses to which the information relates. Otherwise, the IRS might 
be placed in the position of having to ignore information relating to 
violations of law not within its jurisdiction when that information 
comes to IRS's attention during the collation and analysis of 
information in its records.
    (4) 5 U.S.C. 552a(e)(4)(1). This provision of the Privacy Act 
requires the publication of the categories of sources of records in 
each system of records. The reasons an exemption from this provision 
has been claimed are as follows:
    (i) Revealing categories of sources of information could disclose 
investigative techniques and procedures;
    (ii) Revealing categories of sources of information could cause 
sources that supply information to investigators to refrain from giving 
such information because of fear of reprisal, or fear of breach of 
promises of anonymity and confidentiality.
    As required by Executive Order 12866, it has been determined that 
this proposed rule is not a significant regulatory action, and 
therefore, does not require a regulatory impact analysis.
    Pursuant to the requirements of the Regulatory Flexibility Act, 5 
U.S.C. 601-612, it is hereby certified that these regulations will not 
significantly affect a substantial number of small entities. The 
proposed rule imposes no duties or obligations on small entities.
    In accordance with the provisions of the Paperwork Reduction Act of 
1995, the Department of the Treasury has determined that this proposed 
rule would not impose new record keeping, application, reporting, or 
other types of information collection requirements because the types of 
records to be maintained are being transferred to this system of 
records from other systems of records already in existence, 
specifically the systems of records entitled ``Treasury/IRS 60.001-
Assault and Threat Investigation Files, Inspection'' and ``Treasury/IRS 
60.007-Miscellaneous Information File, Inspection.''

List of Subjects in 31 CFR Part 1

    Privacy.
    Part 1 of Title 31 of the Code of Federal Regulations is amended as 
follows:

PART 1--[AMENDED]

    1. The authority citation for part 1 continues to read as follows:

    Authority: 5 U.S.C. 301 and 31 U.S.C. 321. Subpart A also issued 
under 5 U.S.C. 552, as amended. Subpart C also issued under 5 U.S.C. 
552a.

    2. Section 1.36 paragraph (g)(1)(viii) is amended by adding the 
following text to the table in numerical order:


Sec. 1.36  Systems exempt in whole or in part from provisions of 5 
U.S.C. 552a and this subpart.

* * * * *
    (g) * * *
    (1) * * *
    (viii) * * *

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                  Number                           Name of system
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                  *        *        *        *        *
60.000....................................  Employee Protection System
                                             Records.
 
                  *        *        *        *        *
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    Dated: November 7, 2001.
W. Earl Wright, Jr.,
Chief Management and Administrative Programs Officer.
[FR Doc. 01-29710 Filed 11-29-01; 8:45 am]
BILLING CODE 4830-01-P