[Federal Register Volume 76, Number 62 (Thursday, March 31, 2011)]
[Notices]
[Pages 17997-17998]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-7629]


-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

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 42.888--Qualifying Therapeutic 
Discovery Project Records.''

DATES: Comments must be received no later than May 2, 2011. This new 
system of records will be effective May 2, 2011 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 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. All comments, including attachments and other 
supporting materials, received are subject to public disclosure. You 
should submit only information that you wish to make available 
publicly.

FOR FURTHER INFORMATION CONTACT: Dave Thurber, Chief, Abusive 
Transactions and Technical Issues (ATTI) Group, Office of Examination, 
Small Business/Self-Employed Division, Internal Revenue Service, (707) 
646-7291 ([email protected]).

SUPPLEMENTARY INFORMATION: The IRS is required to administer, in 
consultation with the Department of Health and Human Services, the 
Qualifying Therapeutic Discovery Program pursuant to The Patient 
Protection and Affordable Care Act (Pub. L. 111-148), as amended by the 
Health Care and Education Reconciliation Act of 2010 (Pub. L. 111-152) 
(Affordable Care Act).
    The qualifying therapeutic discovery tax credit targets projects 
that show significant potential to produce new therapies, address unmet 
medical needs, reduce the long-term growth of health care costs, and 
advance the goal of curing cancer within the next 30 years. Allocation 
of credits will also take into consideration which projects show the 
greatest potential to create and sustain high-quality, high-paying jobs 
in the United States and to advance our competitiveness in the fields 
of life, biological, and medical sciences.
    This proposed new system will contain information regarding 
qualifying therapeutic discovery projects that are designed to develop 
a product, process, or therapy to diagnose, treat, or prevent diseases 
and afflictions by: (1) Conducting pre-clinical activities, clinical 
trials, clinical studies, and research protocols; or (2) developing 
technology or products designed to diagnose diseases and conditions, 
including molecular and companion drugs and diagnostics, or to further 
the delivery or administration of therapeutics.
    The Affordable Care Act requires the IRS to disclose certain 
information to the public regarding the amount of the grant or credit, 
the identity of the person receiving the grant or credit, and a 
description of the project with respect to which the grant was made or 
the credit allowed. This proposed new system includes a routine use 
authorizing these disclosures to comply with the Act and the intent of 
Congress to publicize projects that show significant potential to 
produce new and cost-saving therapies, support good jobs, and increase 
U.S. competitiveness.
    As required by 5 U.S.C. 552a(r), a report of a new system of 
records has been provided to the Committee on Oversight and 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.
    The system of records entitled ``Treasury/IRS 42.888--Qualifying 
Therapeutic Discovery Project Records'' is published in its entirety 
below.

    Dated: March 11, 2011.
Melissa Hartman,
Deputy Assistant Secretary for Privacy, Transparency, and Records.
Treasury/IRS 42.888

System Name:
    Qualifying Therapeutic Discovery Project Records.

System Location:
    IRS Campus, Covington, KY.

Categories of Individuals Covered By The System:
    Individuals who file an Application for a Qualifying Therapeutic 
Discovery Project credit (or grant in lieu of credit) in their 
individual capacity or on behalf of their sole proprietorship.

Categories of Records in the System:
    These records include information pertaining to the IRS's 
administration of the Qualifying Therapeutic Discovery Project Program. 
Records include, but are not limited to the application, including Form 
8942 and the Project Information Memorandum, representative 
authorization information, and a unique administrative control 
identifier associated with each application for certification. The 
records may contain taxpayer names and Taxpayer Identification Numbers 
(TIN) (social security number (SSN)).

Authority for Maintenance of The System:
    5 U.S.C. 301 and 26 U.S.C. 48D and 7801. Section 9023(a) of The 
Patient Protection and Affordable Care Act (Pub. L. 111-148) as amended 
by the Health Care and Education Reconciliation Act of 2010 (P. L. 111-
152) [Affordable Care Act].

Purpose:
    To administer, in consultation with the Department of Health & 
Human Services, a qualifying therapeutic discovery project program to 
consider and award certifications for qualified investments eligible 
for the credit (or, at the taxpayer's election, the grant) to 
qualifying therapeutic discovery project sponsors.

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. All other records may be used as described 
below if the IRS deems that the purpose of the disclosure is compatible 
with the purpose for which IRS collected the records, and no privilege 
is asserted.
    (1) To disclose certain information to the public regarding the 
amount of the grant, the identity of the person to whom the grant was 
made, and a description of the project with respect to which the grant 
was made in accordance with the intent of Congress to publicize the 
projects that show significant potential to produce new and cost-saving 
therapies, support good jobs, and increase U.S. competitiveness.
    (2) Disclose information to the Department of Justice (DOJ) when 
seeking legal advice or for use in any proceeding, or in preparation 
for any proceeding, when: (a) The IRS or any component thereof; (b) any 
IRS employee in his or her official capacity;

[[Page 17998]]

(c) any IRS employee in his or her individual capacity if the IRS or 
DOJ has agreed to provide representation for the employee; or (d) the 
United States is a party to, has an interest in, or is likely to be 
affected by, the proceeding and the IRS or DOJ determines that the 
records are relevant and necessary to the proceeding or advice sought.
    (3) Disclose information during a proceeding before a court, 
administrative tribunal, or other adjudicative body when: (a) The IRS 
or any component thereof; (b) any IRS employee in his or her official 
capacity; (c) any IRS employee in his or her personal capacity if the 
IRS or DOJ has agreed to provide representation for the employee; or 
(d) the United States is a party to, has an interest in, or is likely 
to be affected by, the proceeding and the IRS or DOJ determines that 
the information is relevant and necessary to the proceeding. 
Information may be disclosed to the adjudicative body to resolve issues 
of relevancy, necessity, or privilege pertaining to the information.
    (4) Disclose information to an appropriate Federal, State, local, 
tribal, or foreign agency, or other public authority, responsible for 
implementing or enforcing, or for investigating or prosecuting the 
violation of a statute, rule, regulation, order, or license, when a 
record on its face, or in conjunction with other records, indicates a 
potential violation of law or regulation and the information disclosed 
is relevant to any regulatory, enforcement, investigative, or 
prosecutorial responsibility of the receiving authority.
    (5) Disclose information to third parties during the course of an 
investigation to the extent necessary to obtain information pertinent 
to the investigation.
    (6) Disclose information to a contractor, including an expert 
witness or a consultant hired by the IRS, to the extent necessary for 
the performance of a contract.
    (7) To appropriate agencies, entities, and persons when: (a) The 
Department suspects or has confirmed that the security or 
confidentiality of information in the system of records has been 
compromised; (b) 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 (c) 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.
    (8) Disclose information to professional organizations or 
associations with which individuals covered by this system of records 
may be affiliated, such as state bar disciplinary authorities, to meet 
their responsibilities in connection with the administration and 
maintenance of standards of conduct and discipline.

Policies and Practices for Storing, Retrieving, Accessing, Retaining 
and Disposing of Records in The System:
Storage:
    Paper records and electronic media.

Retrievability:
    By taxpayer name and Taxpayer Identification Number (TIN) (social 
security number (SSN), employer identification number (EIN), or similar 
number assigned by the IRS.

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 Guidance, and IRM 10.2, 
Physical Security Program.

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

System Manager(s) and Address:
    Commissioner, SB/SE, 5000 Ellin Road, New Carrollton, MD 20706.

Notification Procedure:
    Individuals seeking to determine if this system of records contains 
a record pertaining to themselves may inquire in accordance with 
instructions appearing at 31 CFR part 1, subpart C, appendix B. 
Inquiries should be addressed as in ``Record Access Procedures'' below.

Records Access Procedures:
    Individuals seeking access to any record contained in this system 
of records, or seeking to contest its content, may inquire in 
accordance with instructions appearing at 31 CFR part 1, subpart C, 
appendix B. Inquiries should be addressed to Disclosure Office 5, Room 
7019, 550 Main Street, Cincinnati, OH 45202. The IRS may assert 5 
U.S.C. 552a(d)(5) as appropriate.

Contesting Records Procedures:
    26 U.S.C. 7852(e) prohibits Privacy Act amendment of tax records. 
For all other records, see ``Records Access Procedures'' above.

Records Source Categories:
    Records in this system are provided by the applicants, the 
Department of Health and Human Services, and the IRS taxpayer account 
records.

Exemptions Claimed For The System:
    None.

[FR Doc. 2011-7629 Filed 3-30-11; 8:45 am]
BILLING CODE 4830-01-P