[Federal Register Volume 88, Number 124 (Thursday, June 29, 2023)]
[Notices]
[Pages 42052-42054]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-13846]


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DEPARTMENT OF EDUCATION

[Docket ID ED-2020-FSA-0145]


Privacy Act of 1974; Matching Program

AGENCY: Federal Student Aid, U.S. Department of Education.

ACTION: Notice of a new matching program.

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SUMMARY: This document provides notice of a new matching program 
between the between the U.S. Department of Education (ED or 
Department), as the recipient agency, and the U.S. Department of the 
Treasury (Treasury), Internal Revenue Service (IRS) as the source 
agency.

DATES: The period of this matching program is estimated to cover the 
18-month period from July 21, 2023 through January 20, 2025. However, 
the matching program will become applicable at the later of the 
following two dates: July 21, 2023, or 30 days after the publication of 
this notice, on June 29, 2023, unless comments have been received from 
interested members of the public requiring modification and 
republication of the notice. The matching program will continue for 18 
months after the applicable date and may be extended for up to an 
additional 12 months, if the Data Integrity Boards (DIBs) of ED and 
Treasury determine that the conditions specified in 5 U.S.C. 
552a(o)(2)(D) have been met.

ADDRESSES: Comments must be submitted via the Federal eRulemaking 
Portal at regulations.gov. However, if you require an accommodation or 
cannot otherwise submit your comments via regulations.gov, please 
contact the program contact person listed under FOR FURTHER INFORMATION 
CONTACT. The Department will not accept comments submitted by fax or by 
email, or comments submitted after the comment period. To ensure that 
the Department does not receive duplicate copies, please submit your 
comments only once. In addition, please include the Docket ID at the 
top of your comments.
    [ssquf] Federal eRulemaking Portal: Go to www.regulations.gov to 
submit your comments electronically. Information on using 
Regulations.gov, including instructions for accessing agency documents, 
submitting comments, and viewing the docket, is available on the site 
under the ``FAQ'' tab.
    Privacy Note: The Department's policy is generally to make comments 
received from members of the public available for public viewing in 
their entirety on the Federal eRulemaking Portal at http://www.regulations.gov. Therefore, commenters should include in their 
comments only information about themselves that they wish to make 
publicly available.

FOR FURTHER INFORMATION CONTACT: Zelma Barrett, Program and Budget 
Analyst, U.S. Department of Education, Federal Student Aid, Washington, 
DC 20202. Telephone: (202) 377-4308.
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), you may call the Federal Relay Service (FRS), toll 
free, at 1-800-877-8339.

SUPPLEMENTARY INFORMATION: Pursuant to the Privacy Act of 1974, as 
amended by the Computer Matching and Privacy Protection Act of 1988 and 
the Computer Matching and Privacy Protection Amendments of 1990 
(Privacy Act) (5 U.S.C. 552a), and Office of Management and Budget 
(OMB) guidance on the conduct of matching programs, notice is hereby 
given of the establishment of a matching program between the U.S. 
Department of Education, as the recipient agency, and the U.S. 
Department of the Treasury, Internal Revenue Service, as the source 
agency, under the authority of the Fostering Undergraduate Talent by 
Unlocking Resources for Education Act (FUTURE Act), Public Law 116-91, 
133 Stat. 1189-1197 (2019), as amended by the Coronavirus Aid, Relief, 
and Economic Security Act (CARES Act), Public Law 116-136, 134 Stat. 
281-615 (2020), and the FAFSA Simplification Act, title VII of division 
FF of Public Law 116-260, 134 Stat. 3137-3201 (2020) (which is part of 
the Consolidated Appropriations Act, 2021), as amended by the FAFSA 
Simplification Act Technical Corrections Act, division R of Public Law 
117-103, 136 Stat. 819-821 (2022) (which is part of the Consolidated 
Appropriations Act, 2022).
    The FUTURE Act amended section 6103(l)(13) of the Internal Revenue 
Code (IRC) to authorize the IRS to disclose to ED certain Federal tax 
information (FTI) of an individual, upon approval being provided by the 
individual to ED, for the purpose of determining eligibility for, or 
repayment of obligations under, Income-Driven Repayment (IDR) plans 
under title IV of the Higher Education Act of 1965, as amended (HEA)(20 
U.S.C. 1070 et seq.), with respect to loans under part D of title IV of 
the HEA; and determining eligibility for, and the amount of, Federal 
student financial aid under a program authorized under subpart 1 of 
part A, part C, or part D of title IV of the HEA. The FTI that the IRS 
discloses to ED under sections 6103(l)(13)(A) and (C) of the IRC may 
also be used by ED for the purposes of: (a) reducing the net cost of 
improper payments: (i) under IDR plans and (ii) relating to awards of 
Federal student financial aid under a program authorized under subpart 
1 of part A, part C, or part D of the HEA; (b) oversight by ED's Office 
of Inspector General (OIG) as authorized by chapter 4 of title 5 of the 
United States Code, except for the purpose of conducting criminal 
investigations or prosecutions; and (c) conducting analyses and 
forecasts for estimating costs related to: (i) IDR plans and (ii) 
awards of Federal student financial aid under a program authorized 
under subpart 1 of part A, part C, or part D of the HEA as set forth in 
section 6103(l)(13)(D) of the IRC. The FTI will not duplicated or 
redisclosed for these uses. However, the FTI may be redisclosed by ED, 
with the written consent of the taxpayer with respect to whom the FTI 
relates, in accordance with section 6103(l)(13)(D)(iii) of the IRC, 
solely for use in the application, award, and administration of 
financial aid awarded by the Federal government or certain persons 
described in sections 6103(l)(13)(D)(iii)(I)-(III) of the IRC to an

[[Page 42053]]

institution of higher education participating in a program under 
subpart 1 of part A, part C, or part D of title IV of the HEA, a State 
higher education agency, or a scholarship organization which is an 
entity designated by the Secretary of ED prior to December 19, 2019 
under section 483(a)(3)(E) of the HEA.
    In accordance with the Privacy Act, OMB ``Final Guidance 
Interpreting the Provisions of Public Law 100-503, the Computer 
Matching and Privacy Protection Act of 1988,'' published in the Federal 
Register on June 19, 1989 (54 FR 25818-25829), and OMB Circular No. A-
108, notice is hereby provided of the establishment of a matching 
program between the IRS and ED pursuant to which the IRS will disclose 
to ED certain FTI of an individual, upon approval being provided by the 
individual to ED, for the purpose of determining eligibility for, or 
repayment obligations under, IDR plans under title IV of the HEA with 
respect to loans under part D of title IV of the HEA; and determining 
eligibility for, and amount of, Federal student financial aid under a 
program authorized under subpart 1 of part A, part C, or part D of 
title IV of the HEA.
    The FTI that the IRS discloses to ED under sections 6103(l)(13)(A) 
and (C) of the IRC may also be used by ED for the purposes of: (a) 
reducing the net cost of improper payments: (i) under IDR plans and 
(ii) relating to awards of Federal student financial aid under a 
program authorized under subpart 1 of part A, part C, or part D of the 
HEA; (b) oversight by ED's OIG as authorized by chapter 4 of title 5 of 
the United States Code, except for the purpose of conducting criminal 
investigations or prosecutions; and (c) conducting analyses and 
forecasts for estimating costs related to: (i) IDR plans and (ii) 
awards of Federal student financial aid under a program authorized 
under subpart 1 of part A, part C, or part D of the HEA, as set forth 
in section 6103(l)(13)(D) of the IRC. The FTI will not duplicated or 
redisclosed for these uses.

PARTICIPATING AGENCIES:
    ED and IRS.

AUTHORITY FOR CONDUCTING THE MATCHING PROGRAM:
    This matching program is authorized by the FUTURE Act, as amended. 
The FUTURE Act amended section 6103(l)(13) of the IRC to authorize the 
IRS to disclose to ED certain FTI for the purposes set forth in the 
SUPPLEMENTARY INFORMATION section of this Notice provided certain 
conditions are satisfied. In addition, 5 U.S.C. 552a(b)(3) provides 
authority for the IRS to disclose Privacy Act-protected records to ED 
pursuant to a published routine use in an applicable system of records 
notice for a purpose that is compatible with the purposes for which the 
IRS collected the records. Further, ED is authorized to participate in 
the matching program pursuant to the HEA, including sections 483 and 
494(a) and (b) of the HEA (20 U.S.C. 1090 and 1098h(a) and (b)) and the 
FUTURE Act.

PURPOSE(S):
    The purpose of this matching program between the IRS and ED is for 
the IRS to disclose to ED certain FTI of an individual, upon approval 
being provided by the individual to ED, for determining eligibility 
for, or repayment obligations under, IDR plans under title IV of the 
HEA with respect to loans under part D of title IV of the HEA; and 
determining eligibility for, and amount of, Federal student financial 
aid under a program authorized under subpart 1 of part A, part C, or 
part D of title IV of the HEA.
    The FTI that the IRS discloses to ED under sections 6103(l)(13)(A) 
and (C) of the IRC may also be used by ED for the purposes of: (a) 
reducing the net cost of improper payments: (i) under IDR plans and 
(ii) relating to awards of Federal student financial aid under a 
program authorized under subpart 1 of part A, part C, or part D of the 
HEA; (b) oversight by ED's OIG as authorized by chapter 4 of title 5 of 
the United States Code, except for the purpose of conducting criminal 
investigations or prosecutions; and (c) conducting analyses and 
forecasts for estimating costs related to: (i) IDR plans and (ii) 
awards of Federal student financial aid under a program authorized 
under subpart 1 of part A, part C, or part D of the HEA, as set forth 
in section 6103(l)(13)(D) of the IRC. The FTI will not be duplicated or 
redisclosed for these uses.
    The FTI information that ED will obtain as a result of this 
matching program effectuates the purpose of the HEA because it provides 
an efficient and comprehensive match to determine eligibility for, and 
the amount of, Federal student financial aid under a program authorized 
under subpart 1 of part A, part C, or part D of title IV of the HEA, 
and eligibility for, or repayment obligations under, IDR plans for 
loans under the Federal Direct Loan Program.

CATEGORIES OF INDIVIDUALS:
    This matching program covers students (including a student's spouse 
for an independent student and a student's parent(s) for dependent 
student) who apply for Federal student financial assistance under title 
IV of the HEA through the Free Application for Federal Student Aid 
(FAFSA[supreg]) and borrowers (including spouses of borrowers who are 
independent students) who have had a loan disbursed and are fully 
responsible to pay the loan and interest back to the loan holder under 
applicable Federal student loan programs administered under the 
authority of title IV of the HEA, or who have such a loan written off 
due to default. This matching program also includes as a ``borrower'' 
an individual who is responsible for completing a service obligation 
and fails to complete the service obligation in exchange for having 
received a grant under the Teacher Education Assistance for College and 
Higher Education (TEACH) Grant Program authorized under subpart 9 of 
part A of title IV of the HEA.

CATEGORIES OF RECORDS:
    This matching program covers the following categories of records:
    (1) An applicant's information submitted to ED to determine the 
applicant's eligibility for Federal student financial assistance under 
a program authorized under subpart 1 of part A, part C, or part D of 
title IV of the HEA;
    (2) A borrower's information submitted to ED to determine the 
borrower's eligibility for, or repayment obligations under, IDR plans 
under title IV of the HEA with respect to loans under part D of title 
IV of the HEA;
    (3) An applicant's approval and consent submitted to ED to process 
an application for determining eligibility for Federal student 
financial assistance under a program authorized under subpart 1 of part 
A, part C, or part D of aid under title IV of the HEA;
    (4) A borrower's approval and consent submitted to ED to process an 
application for determining eligibility for, or repayment obligations 
under, IDR plans under title IV of the HEA with respect to loans under 
part D of title IV of the HEA; and
    (5) FTI on individuals from the IRS' Customer Account Data Engine 
(CADE) Individual Master File.
    More specifically, ED will transmit the following specific data 
elements to the IRS under the matching program:
    (1) Social Security Number (SSN)/Taxpayer Identification Number 
(TIN);
    (2) Tax year for which FTI is required;
    (3) Last name;
    (4) Date of birth (DOB);
    (5) Unique identifier; and

[[Page 42054]]

    (6) Date/time stamp of the individual's approval for use of FTI in 
determining eligibility by ED.
    In addition, in response to a valid request submitted by ED to the 
IRS pursuant to section 6103(l)(13)(A) of the IRC (IDR request) that 
matches a tax record for the requested SSN/TIN and tax year, the IRS 
will return the following specific data elements to ED:
    (1) SSN/TIN (provided in the request);
    (2) Tax year (associated with FTI provided);
    (3) Last name;
    (4) Filing status code;
    (5) Adjusted gross income (AGI) amount;
    (6) Total number of exemptions; and
    (7) Total number of dependents.
    Further, in response to a valid request submitted by ED to the IRS 
pursuant to section 6103(l)(13)(C) of the IRC (FAFSA request) that 
matches a tax record for the requested SSN/TIN and tax year, the IRS 
will return the following specific data elements to ED:
    (1) SSN/TIN (provided in the request);
    (2) Tax year (provided in the request);
    (3) Last name (provided in the request);
    (4) Filing status code;
    (5) AGI amount;
    (6) Total number of exemptions;
    (7) Total number of dependents;
    (8) Income earned from work (sum of wages, farm income, Schedule C 
income);
    (9) Total amount of income tax paid;
    (10) Total allowable education credits;
    (11) Sum of untaxed IRA contributions and other payments to 
qualified plans;
    (12) Total amount of untaxed IRA distributions;
    (13) Tax exempt interest;
    (14) Sum of untaxed pensions and annuities;
    (15) Net profit/loss from Schedule C; and
    (16) Indicator of filing for Schedules A, B, D, E, F, and H.

SYSTEM(S) OF RECORDS:
    ED will disclose, with written consent, to the IRS information 
under this matching program from ED's systems of records notice 
entitled ``FUTURE Act System (FAS)'' (18-11-23), which will be 
published in the Federal Register.
    The IRS will disclose to ED FTI under this matching program from 
the IRS's system of records notice entitled ``Customer Account Data 
Engine (CADE) Individual Master File (IMF)--Treasury/IRS'' (Treasury/
IRS 24.030), published in the Federal Register on September 8, 2015 (80 
FR 54082-54083).
    Accessible Format: On request to the program contact person listed 
under FOR FURTHER INFORMATION CONTACT, individuals with disabilities 
can obtain this document in an accessible format. The Department will 
provide the requestor with an accessible format that may include Rich 
Text Format (RTF) or text format (txt), a thumb drive, an MP3 file, 
braille, large print, audiotape, or compact disc, or other accessible 
format.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. You may 
access the official edition of the Federal Register and the Code of 
Federal Regulations at www.govinfo.gov. At this site you can view this 
document, as well as all other documents of this Department published 
in the Federal Register, in text or Portable Document Format (PDF). To 
use PDF you must have Adobe Acrobat Reader, which is available free at 
the site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the Department.

Richard Cordray,
Chief Operating Officer, Federal Student Aid.
[FR Doc. 2023-13846 Filed 6-28-23; 8:45 am]
BILLING CODE 4000-01-P