[Federal Register: October 8, 2009 (Volume 74, Number 194)]
[Rules and Regulations]
[Page 51777-51778]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08oc09-7]
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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: Final rule.
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SUMMARY: In accordance with the requirements of the Privacy Act of
1974, as amended, the Department of the Treasury exempts a new Internal
Revenue Service (IRS) system of records entitled ``Treasury/IRS
50.222--Tax Exempt/Government Entities (TE/GE) Case Management
Records'' from certain provisions of the Privacy Act.
DATES: Effective Date: October 8, 2009.
FOR FURTHER INFORMATION CONTACT: Telephonic inquiries should be
directed to Marianne Davis, Program Analyst, Internal Revenue Service,
TE/GE Division, at telephone number (949) 389-4304. Written inquiries
should be directed to Robert Brenneman, TE/GE Reporting and Electronic
Examination System (TREES) Project Manager, at Internal Revenue
Service, TE/GE Business Systems Planning (SE:T:BSP), 1111 Constitution
Avenue, NW., Attn: PE-6M4, Washington, DC 20224.
SUPPLEMENTARY INFORMATION: The Department of the Treasury published a
notice of proposed rule on December 7, 2005 (Volume 70, No. 234), pages
72739-72740, exempting the new system of records from certain
provisions of the Privacy Act of 1974, as amended. The IRS published
the proposed system notice in its entirety on December 7, 2005 (Volume
70, Number 234), pages 72876-72878.
Under 5 U.S.C. 552a(k)(2), the head of an agency may promulgate
rules to exempt any system of records within the agency from certain
provisions of the Privacy Act if the system contains investigatory
material compiled for law enforcement purposes. Treasury/IRS 52.222--
Tax Exempt/Government Entities (TE/GE) Case Management Records contains
investigatory material compiled for law enforcement purposes.
The proposed rule requested that public comments be sent the Office
of Governmental Liaison and Disclosure, 1111 Constitution Avenue, NW.,
Washington, DC 20224, no later than January 6, 2006.
The IRS received one comment on the proposed rule and the system of
records notice urging the IRS: (1) not to exempt the system of records
from requirements that its information be relevant and necessary for
its purpose; and, (2) to limit the scope of its exemptions from the
Privacy act requirements to provide access and correction rights to
individuals.
After consideration, the IRS determined that the public comment did
not present any new information that would be a basis for changes being
made to the proposed rule or system of records notice because: (1)
Relevance and necessity can only be established with certainty after
the information is evaluated; and, (2) the access provisions, as
written, are consistent with the language and intent of the Privacy
Act, comport with the Treasury regulation language for (k)(2), and
explain that the release of information to the individual covered by
the system would provide the individual or entity subject to
investigation with significant information concerning the nature of the
investigation and could result in altering or destruction of
documentary evidence, the improper influencing of witnesses, and other
activities that could impede or compromise the investigation.
Accordingly, the Department of the Treasury is hereby giving notice
that the system of records entitled ``Treasury/IRS 50.222--Tax Exempt/
Government Entities (TE/GE) Case Management Records'' is exempt from
certain provisions of the Privacy Act.
The provisions of the Privacy Act from which the system of records
is exempt pursuant to 5 U.S.C. 552a(k)(2) are as follows: 552a(c)(3),
(d)(1), (2), (3) and (4), (e)(1), (e)(4)(G), (e)(4)(H), (e)(4)(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). This provision of the Privacy Act provides
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 provision are:
(i) The release of disclosure accounting would put the tax exempt
or government entity subject to investigation or individuals connected
with those entities 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 individual
covered by the system would provide the individual or entity subject to
investigation with significant information concerning the nature of the
investigation and could result in the altering or destruction of
documentary evidence, the improper influencing of witnesses, and other
activities that could impede or compromise the investigation.
[[Page 51778]]
(iii) Release to the individual of the disclosure accounting would
alert the individual as to which agencies were investigating the tax
exempt government entity subject to investigation, would provide
information concerning 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), (2), (3) and (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: The existence of records pertaining to such
individual; Requirements for identifying an individual who requested
access to records; the agency procedures relating to access to records;
the content of the information contained in such records; and; the
civil remedies available to the individual in the event of adverse
determinations 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 as follows:
Notifying an individual (at the individual's request) of the
existence of an investigative file pertaining to such individual or
granting access to an investigative file pertaining to such individual
could: Interfere with investigative and enforcement proceedings;
deprive co-defendants of a right to a fair trial or an impartial
adjudication; constitute an unwarranted invasion of the personal
privacy of others; disclose the identity of confidential sources and
reveal confidential information supplied by such sources; or, 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 relevant and
necessary for identifying, monitoring, and responding to complaints,
allegations and other information received concerning violations or
potential violations of Title 26. However, an exemption from the
foregoing is needed because, particularly in the early stages of an
investigation, it is not always 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 for exempting this system of
records from the foregoing provision 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 that 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.
As required by Executive Order 12866, it has been determined that
this rule is not a significant regulatory action, and therefore, does
not require a regulatory impact analysis.
The regulation will not have a substantial direct effect on the
States, on the relationship between the Federal Government and the
States, or on the distribution of power and responsibilities among the
various levels of government. Therefore, it is determined that this
rule does not have federalism implications under Executive Order 13132.
Pursuant to the requirements of the Regulatory Flexibility Act, 5
U.S.C. 601-612, it is hereby certified that these regulations will not
significantly affect a substantial number of small entities. The rule
imposes no duties or obligations on small entities.
In accordance with the provisions of the Paperwork Reduction Act of
1995, the Department of the Treasury has determined that this rule
would not impose new recordkeeping, application, reporting, or other
types of information collection requirements.
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:
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. 522a and this subpart.
* * * * *
(g) * * *
(1) * * *
(viii) * * *
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Number Name of system
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* * * * *
Treasury/IRS 50.222....................... Tax Exempt Government
Entities Case Management
Records.
* * * * *
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Dated: August 25, 2009.
Elizabeth Cuffe,
Deputy Assistant Secretary for Privacy and Treasury Records.
[FR Doc. E9-24302 Filed 10-7-09; 8:45 am]
BILLING CODE 4830-01-P