[Federal Register Volume 88, Number 94 (Tuesday, May 16, 2023)]
[Notices]
[Pages 31310-31311]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-10367]


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DEPARTMENT OF VETERANS AFFAIRS


Privacy Act of 1974; Matching Program

AGENCY: Department of Veterans Affairs (VA).

ACTION: Notice of a new matching program.

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SUMMARY: This re-established Computer Matching Agreement (CMA) sets 
forth the terms, conditions, and safeguards under which the Internal 
Revenue Service (IRS) will disclose return information, relating to 
unearned income, to the Department of Veterans Affairs (VA), Veterans 
Benefits Administration (VBA) for the Disclosure of Information to 
Federal, State and Local Agencies (DIFSLA). The purpose of this CMA is 
to make available to VBA certain return information needed to determine 
eligibility for, and amount of benefits for, VBA applicants and 
beneficiaries of needs-based benefits, and to adjust income-dependent 
benefit payments, as prescribed by law. Currently, the most cost 
effective and efficient way to verify annual income of applicants, and 
recipients of these benefits, is through a computer match.

DATES: Comments on this matching program must be received no later than 
June 15, 2023. If no public comment is received during the period 
allowed for comment or unless otherwise published in the Federal 
Register by VA, the new agreement will become effective a

[[Page 31311]]

minimum of 30 days after date of publication in the Federal Register. 
If VA receives public comments, VA shall review the comments to 
determine whether any changes to the notice are necessary. This 
matching program will be valid for 18 months from the effective date of 
this notice.

ADDRESSES: Comments may be submitted through www.Regulations.gov or 
mailed to VA Privacy Service, 810 Vermont Avenue NW, (005X6F), 
Washington, DC 20420. Comments should indicate that they are submitted 
in response to IRS, DIFSLA CMA. Comments received will be available at 
regulations.gov for public viewing, inspection or copies.

FOR FURTHER INFORMATION CONTACT: Gary Hodge, Lead Program Analyst, 
Pension and Fiduciary Service (21P), Department of Veterans Affairs, 
810 Vermont Ave. NW, Washington, DC 20420, 202-461-8394.

SUPPLEMENTARY INFORMATION: CMA between VA and IRS DIFSLA, expires June 
30, 2023. VBA has a legal obligation to reduce the amount of pension 
and of parents' dependency and indemnity compensation by the amount of 
annual income received by the VBA beneficiary. VA will use this 
information to verify the income information submitted by beneficiaries 
in VA's needs-based benefit programs and adjust VA benefit payments as 
prescribed by law. By comparing the information received through the 
matching program between VBA and IRS, VBA will be able to timely and 
accurately adjust benefit amounts. The match information will help VBA 
minimize overpayments and deter fraud and abuse. The legal authority to 
conduct this match is 38 U.S.C. 5106, which requires any Federal 
department or agency to provide VA such information as VA requests for 
the purposes of determining eligibility for benefits or verifying other 
information with respect to payment of benefits. The VA records 
involved in the match are in ``Compensation, Pension, Education, and 
Vocational and Rehabilitation and Employment Records--VA (58 VA 21/22/
28),'' a system of records which was first published at 41 FR 9294 
(March 3, 1976), amended and republished in its entirety at 77 FR 42593 
(July 19, 2012). The IRS records consist of information from the system 
records identified as will extract return information with respect to 
unearned income of the VBA applicant or beneficiary and (when 
applicable) of such individual's spouse from the Information Return 
Master File (IRMF), Treasury/IRS 22.061, at 80 FR 54081- 082 (September 
8, 2015). In accordance with the Privacy Act, 5 U.S.C. 552a(o)(2) and 
(r), copies of the agreement are being sent to both Houses of Congress 
and to the Office of Management and Budget. This notice is provided in 
accordance with the provisions of Privacy Act of 1974 as amended by 
Public Law 100-503.
    Participating Agencies: The Internal Revenue Service (IRS) and 
Department of Veterans Affairs (VA), Veterans Benefits Administration 
(VBA).
    Authority for Conducting the Matching Program: The Internal Revenue 
Code (IRC), 26 U.S.C. 6103(l)(7)(B), authorizes the IRS to disclose 
return information with respect to unearned income to VBA.
    Purpose(s): To provide VBA with certain IRS return information 
needed to determine eligibility for and amount of benefits for VBA 
applicants and beneficiaries of needs-based benefits and to adjust 
income-dependent benefit payments as prescribed by law.
    Categories of Individuals: Veterans and beneficiaries who apply for 
VA income benefits.
    Categories of Records: VBA will furnish the IRS with records in 
accordance with the current IRS Publication 3373, DIFSLA Handbook. The 
requests from VBA will include: The Social Security Number (SSN) and 
name Control (first four characters of the surname) for each individual 
for whom unearned income information is requested. IRS will provide a 
response record for each individual identified by VBA. The total number 
of records will be equal to or greater than the number of records 
submitted by VBA. In some instances, an individual may have more than 
one record on file. When there is a match of individual SSN and name 
control, IRS will disclose the following to VBA: Payee account number; 
payee name and mailing address; payee Taxpayer Identification Numbers 
(TIN); payer name and address; payer TIN; and income type and amount.
    System(s) of Records: VBA records involved in this match are in 
``VA Compensation, Pension, Education, and Vocational Rehabilitation 
and Employment Records--VA'' (58 VA 21/22/28), a system of records that 
was first published at 41 FR 9294 (March 3, 1976), amended and 
republished in its entirety at 77 FR 42593 (July 19, 2012). IRS will 
extract return information with respect to unearned income of the VBA 
applicant or beneficiary and (when applicable) of such individual's 
spouse from the IRMF, Treasury/IRS 22.061, as published at 80 FR 54081-
082 (September 8, 2015).

Signing Authority

    The Senior Agency Official for Privacy, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. John 
Oswalt, Chief Privacy Officer and Chair of the Data Integrity Board, 
Department of Veterans Affairs approved this document on May 4, 2023 
for publication.

    Dated: May 10, 2023.
Amy L. Rose,
Program Analyst, VA Privacy Service, Office of Information Security, 
Office of Information and Technology, Department of Veterans Affairs.
[FR Doc. 2023-10367 Filed 5-15-23; 8:45 am]
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