[Federal Register Volume 73, Number 7 (Thursday, January 10, 2008)]
[Rules and Regulations]
[Pages 1817-1819]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-130]


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DEPARTMENT OF THE TREASURY

Office of the Secretary

31 CFR Part 1


Privacy Act; Implementation

AGENCY: Office of the Secretary, Treasury.

ACTION: Interim rule.

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SUMMARY: In accordance with the requirements of the Privacy Act of 
1974, as amended, the Department of the Treasury amends this part to 
exempt a new Internal Revenue Service (IRS) system of records entitled 
``IRS 42.005--Whistleblower Office Records'' from certain provisions of 
the Privacy Act.

[[Page 1818]]


DATES: Effective Date: January 10, 2008. Comments must be received no 
later than February 11, 2008. You may also submit comments through the 
Federal rulemaking portal at http://www.regulations.gov (follow the 
instructions for submitting comments).

ADDRESSES: Please submit comments to the Director, Whistleblower 
Office, SE:WO, Internal Revenue Service, 1111 Constitution Avenue, NW., 
Washington, DC 20224. Comments will be made available for inspection at 
the IRS 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: Steve Whitlock, Director, (202) 622-
0351, Whistleblower Office, SE:WO, Internal Revenue Service, 1111 
Constitution Avenue, NW., Washington, DC 20224.

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 is hereby giving notice 
of an interim rule to exempt ``Treasury/IRS 42.005 Whistleblower Office 
Records'' from certain provisions of the Privacy Act of 1974, pursuant 
to 5 U.S.C. 552a(k)(2).
    The proposed exemption pursuant to 5 U.S.C. 552a(k)(2) is from 
provisions (c)(3), (d)(1)-(4), (e)(1), (e)(4)(G)-(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). These provisions of the Privacy Act 
provide 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 provisions 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 which 
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 
alteration 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 compromising investigations by those agencies.
    (2) 5 U.S.C. 552a(d)(1)-(4), (e)(4)(G), (e)(4)(H), and (f). These 
provisions of the Privacy Act relate to an individual's right to be 
notified of:
    (i) The existence of records pertaining to such individual,
    (ii) Requirements for identifying an individual, who requested 
access to records,
    (iii) The agency procedures relating to access to and amendment of 
records,
    (iv) The content of the information contained in such records, and
    (v) The civil remedies available to the individual in the event of 
an adverse determination 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 that notifying an individual (at the individual's 
request) of the existence of an investigative file pertaining to such 
individual or to granting access to an investigative file pertaining to 
such individual could:
    (i) Interfere with investigative and enforcement proceedings,
    (ii) Deprive co-defendants of a right to a fair trial or an 
impartial adjudication,
    (iii) Constitute an unwarranted invasion of the personal privacy of 
others,
    (iv) Disclose the identity of confidential sources and reveal 
confidential information supplied by such sources. 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 the system to those records that are needed 
for compliance with the provisions of Title 26. 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.
    (4) 5 U.S.C. 552a(e)(4)(I). 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 who 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.
    These regulations are being published as an interim final rule 
because the amendments do not impose any requirements on any member of 
the public. These amendments are the most efficient means for the 
Treasury Department to implement its internal requirements for 
complying with the Privacy Act.
    Accordingly, pursuant to 5 U.S.C. 553(b)(B) and (d)(3), the 
Department of the Treasury finds good cause that prior notice and other 
public procedures with respect to this rule are unnecessary, and good 
cause for making this interim final rule effective 30 days after 
publication in the Federal Register.
    Pursuant to Executive Order 12866, it has been determined that this 
interim final rule is not a significant regulatory action, and 
therefore, does not require a regulatory impact analysis.
    Because no notice of proposed rulemaking is required, the 
provisions of the Regulatory Flexibility Act, 5 U.S.C. 601-612, do not 
apply.

List of Subjects in 31 CFR Part 1

    Privacy.


0
Part 1, subpart C of title 31 of the Code of Federal Regulations is 
amended as follows:

PART 1--[AMENDED]

0
1. The authority citation for part 1 continues to read as follows:


[[Page 1819]]


    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.


0
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 part.

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

------------------------------------------------------------------------
                Number                           Name of system
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                                * * * * *
IRS 42.005............................  Whistleblower Office Records.
 
                                * * * * *
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* * * * *

    Dated: December 21, 2007.
Peter B. McCarthy,
Assistant Secretary for Management and Chief Financial Officer.
 [FR Doc. E8-130 Filed 1-9-08; 8:45 am]
BILLING CODE 4830-01-P