[Federal Register Volume 73, Number 6 (Wednesday, January 9, 2008)]
[Notices]
[Pages 1667-1669]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-129]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Privacy Act of 1974, as Amended

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 ``Whistleblower Office Records--Treasury/IRS 42.005.''

DATES: Comments must be received no later than February 8, 2008. This 
new system of records will be effective February 19, 2008 unless the 
IRS receives comments that would result in a contrary determination.

ADDRESSES: Comments should be sent to the Director, Whistleblower 
Office, SE:WO, Internal Revenue Service, 1111 Constitution Avenue, NW., 
Washington, DC 20224. Comments will be available for inspection and 
copying in the Freedom of Information Reading Room (Room 1621), at the 
above address. The telephone number for the Reading Room is (202) 622-
5164.

FOR FURTHER INFORMATION CONTACT: Director, Whistleblower Office, SE:WO,

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Internal Revenue Service, 1111 Constitution Avenue, NW., Washington, DC 
20224.

SUPPLEMENTARY INFORMATION: The proposed system will allow the IRS to 
maintain records pertinent to determining claimants' eligibility for 
and amount of awards pursuant to 26 U.S.C. 7623. The Whistleblower 
Office was created by section 406 of the Tax Relief and Health Care Act 
of 2006. Prior to its amendment by Section 406, 26 U.S.C. 7623 
authorized the IRS to pay awards to claimants who provided information 
that led to the collection of taxes. The IRS maintained a decentralized 
procedure for processing requests for such awards. Section 406 amended 
26 U.S.C. 7623 to establish criteria for the payment of certain awards, 
and to provide a judicial remedy in the U.S. Tax Court for review of 
these award determinations. Section 406 of the Act amends section 7623 
of the Internal Revenue Code concerning the payment of awards to 
certain claimants denominated as ``whistleblowers.'' New section 
7623(b) provides an award floor based on information regarding tax law 
violations provided by these claimants. Claimants are eligible for 
section 7623(b) awards based on the amount collected as a result of any 
administrative or judicial actions resulting from the information 
provided.
    The Whistleblower Office has responsibility for the administration 
of a whistleblower program, and the Secretary is required to provide an 
annual report to Congress on the use of section 7623. Records 
pertaining to award applications filed prior to the creation of the 
Whistleblower Office, for which an award has not yet been determined, 
will also be maintained in this system of records. An exemption rule is 
being published separately under the rules section of the Federal 
Register.
    The report of a new system of records, as required by 5 U.S.C. 
552a(r) of the Privacy Act, has been submitted to the Committee on 
Government Reform of the House of Representatives, the Committee on 
Homeland Security and Governmental Affairs of 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 November 30, 2000.
    The proposed new system of records entitled ``Treasury/IRS 42.005--
Whistleblower Office Records'' is published in its entirety below.

    Dated: December 21, 2007.
Peter B. McCarthy,
Assistant Secretary for Management and Chief Financial Officer.
TREASURY/IRS 42.005

SYSTEM NAME:
    Whistleblower Office Records.

SYSTEM LOCATION:
    Whistleblower Office, Washington, DC, and Ogden Campus, Ogden, 
Utah.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    These records include information about individuals who submit 
allegations of possible tax noncompliance and claims for award to the 
Whistleblower Office (``claimants''), claimants' representatives, and 
the taxpayers and third parties about whom the information is received, 
which is pertinent to a claim for award.

CATEGORIES OF RECORDS IN THE SYSTEM:
    These records include claimant identity information, allegation 
information received, claims for award (including supporting 
information or documentation), information pertaining to any civil or 
criminal investigation initiated, or expanded, as a result of the 
allegations received by the Whistleblower Office, any other information 
pertinent to the Whistleblower Office's determination as to the amount, 
if any, of any award for which the claimant may be eligible under 26 
U.S.C. 7623, including information pertaining to appeals of award 
determinations to the Tax Court (including the results of such 
appeals).

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    26 U.S.C. 7623 and 7801, and 5 U.S.C. 301.

PURPOSE(S):
    The records in this system will be used to administer the claimant 
award program under 26 U.S.C. 7623.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH USES:
    Disclosure of returns and return information may be made only as 
provided by 26 U.S.C. 6103. To the extent authorized by 26 U.S.C. 6103, 
disclosure may also be made to appropriate agencies, entities, and 
persons when (1) the Department suspects or has confirmed that the 
security or confidentiality of information in the system of records has 
been compromised; (2) the Department has determined that as a result of 
the suspected or confirmed compromise there is a risk of harm to 
economic or property interests, identity theft or fraud, or harm to the 
security or integrity of this system or other systems or programs 
(whether maintained by the Department or another agency or entity) that 
rely upon the compromised information; and (3) the disclosure made to 
such agencies, entities, and persons is reasonably necessary to assist 
in connection with the Department's efforts to respond to the suspected 
or confirmed compromise and prevent, minimize, or remedy such harm.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Paper records and electronic media.

RETRIEVABILITY:
    Data is retrieved by the name or taxpayer identification number of 
the claimant(s), of the taxpayer(s) who are the subject(s) of the 
allegation(s), or of third parties identified in the records; the name 
or Centralized Authorization File (CAF) number of the claimant's 
representative; or an award claim number assigned by the Whistleblower 
Office.

SAFEGUARDS:
    Only persons authorized by law will have access to these records. 
Access controls are not less than those published in IRM 10.8.1, 
Information Technology (IT) Security Policy and Standards and IRM 1.16, 
Physical Security Program.

RETENTION AND DISPOSAL:
    Records are maintained in accordance with IRM 1.15.23, Records 
Control Schedule for Tax Administration--Examination; Item 13, Reward 
Claim Cases.

SYSTEM MANAGER(S) AND ADDRESS:
    Director, Whistleblower Office, SE:WO, 1111 Constitution Avenue, 
NW., Washington, DC 20224.

NOTIFICATION PROCEDURE:
    This system may not be accessed for purposes of determining whether 
the system contains a record pertaining to a particular individual; the 
records are exempt under 5 U.S.C. 552a(k)(2).

RECORDS ACCESS PROCEDURES:
    This system may not be accessed for purposes of inspection or to 
contest the content of records; the records are exempt under 5 U.S.C. 
552a(k)(2).

CONTESTING RECORDS PROCEDURES:
    26 U.S.C. 7852(e) prohibits Privacy Act amendment of tax records.

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RECORDS SOURCE CATEGORIES:
    Claimants and their representatives; Department of the Treasury 
employees and records; newspapers, court records, and other publicly 
available information.

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

 [FR Doc. E8-129 Filed 1-8-08; 8:45 am]
BILLING CODE 4830-01-P