[Federal Register Volume 61, Number 175 (Monday, September 9, 1996)] [Notices] [Pages 47547-47548] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: X96-10909] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Internal Revenue Service Privacy Act of 1974; System of Records AGENCY: Internal Revenue Service, Treasury. ACTION: Notice of Proposed New Privacy Act System of Records. ----------------------------------------------------------------------- SUMMARY: The Treasury Department, Internal Revenue Service, gives notice of a proposed new system of records entitled Automated Information Analysis System--Treasury/IRS 46.050, which is subject to the Privacy Act of 1974, 5 U.S.C. 552a. This proposed system has been developed to assist the Internal Revenue Service in accomplishing its mission of encouraging and achieving the highest possible degree of voluntary compliance with the Internal Revenue laws. It is further proposed to have the system exempt from meeting certain requirements of the Privacy Act of 1974. DATES: Comments must be received no later than October 9, 1996. This new system of records will be effective October 21, 1996, unless comments are received which result in a contrary determination. ADDRESSES: Comments should be sent to the Office of Disclosure, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC 20224. Comments will be made available for inspection and copying in the Freedom of Information Reading Room upon request. FOR FURTHER INFORMATION CONTACT: Wayne Loving, Director, Office of Policy and Information Division, Criminal Investigation, (202) 622- 5676. SUPPLEMENTARY INFORMATION: The Internal Revenue Service's Criminal Investigation Division (CID) seeks to establish and maintain the proposed new system of records as a more efficient means of performing its responsibilities. Among Criminal Investigation's principal responsibilities are probing and referring for prosecution criminal cases centering largely on violations of tax laws, including income tax evasion, refund fraud, and other crimes contributing to the Federal tax gap. Criminal Investigation also investigates violations of certain money laundering laws. The Automated Information Analysis System will automatically identify potential leads to money laundering and income tax violations which might not otherwise surface through traditional information gathering efforts. The Automated Information Analysis System only relies upon internal data included in other Privacy Act systems of records. This action should encourage individuals and businesses to fully comply with the tax laws and other reporting requirements and aid Internal Revenue's Criminal Investigation Division in identifying potential violations. The Automated Information Analysis System is designed to provide the Internal Revenue Service with high quality investigative leads to tax noncompliance at a substantial savings. The Automated Information Analysis System produces an output record that identifies leads appropriate for further evaluation by field special agents. Once the output record is sent to the District Criminal Investigation office that will investigate the leads, it will be covered by system of records Treasury/IRS 46.009, Centralized Evaluation and Processing of Information Items (CEPIIs). In a separate publication, the Internal Revenue Service is also giving public notice of a proposed rule to exempt this system of records from certain provisions of 5 U.S.C. 552a pursuant to subsections (j)(2), and (k)(2) of the same section. Treasury/IRS 46.050 Automated Information Analysis System - Treasury/IRS. [[Page 47548]] Detroit Computing Center, 1300 John C. Lodge Drive, Detroit, Michigan 48226 and Automated Criminal Investigation Office, 7940 Kentucky Drive, Boone County, Kentucky 41042. Taxpayers and other individuals involved in financial transactions which require the filing of information reflected in the Categories of records below. The information included in the Automated Information Analysis System is from reported income and tax information on the Individual Master File (IMF)--Treasury/IRS 24.030; Individual Returns Files, Adjustments and Miscellaneous Documents File--Treasury/IRS 22.034. The Automated Information Analysis System also includes information from such sources as: Currency Transaction Reports (CTRs), Currency and Monetary Instrument Reports (CMIR's), Bank Secrecy Reports File, Foreign Bank Account Reports (FBARs), Forms 8300 (Currency Received in Trade or Business),--Treasury/CS .067; the Taxpayer Delinquent Account Files (TDA)--Treasury/IRS 26.019, which includes adjustments and payment tracer files and collateral files; Taxpayer Delinquency Investigation Files (TDI)--Treasury/IRS 26.020, which includes taxpayer information on delinquent returns; the Examination Administrative File--Treasury/IRS 42.001, and Casino Transaction Reports from the Detroit Computing Center. 5 U.S.C. 301; 26 U.S.C. 7602, 7801, and 7802. The purpose is to maintain records which identify transaction patterns that are indicative of criminal and/or civil noncompliance with Federal income tax and money laundering laws and to simultaneously evaluate diverse data sources. Disclosure of returns and return information may be made only as provided by 26 U.S.C. 6103. Electronic and Magnetic Media. Records are retrievable by name, address, and social security number. All Criminal Investigation personnel accessing the system will have successfully passed a background investigation. Criminal Investigation will furnish information from the system of records to approved personnel only on a ``need to know'' basis using passwords and access controls. Access control will not be less than those provided by the Manager's Security Handbook, IRM 1(16)12. Procedural and physical safeguards to be utilized include the logging of all queries and periodic review of the query logs; compartmentalization of information to restrict access to authorized personnel; encryption of electronic communications; intruder alarms; and 24-hour building guards. All records are disposed of after 4 years. Records will be disposed of by erasure of magnetic media. Official prescribing policies and practices--Assistant Commissioner (Criminal Investigation), National Office. Officials maintaining the system--Detroit Computing Center, CI Representative, and the Automated Criminal Investigation Office Manager, 7940 Kentucky Drive, Boone County, Kentucky 41042. This system of records may not be accessed for purposes of determining if the system contains a record pertaining to a particular individual. This system of records may not be accessed for purposes of inspection or for contest of content of records. 26 U.S.C. 7852(e) prohibits Privacy Act amendment of tax records. This system of records may not be accessed for purposes of determining the source of the records. Records to be included all come from existing Treasury and Internal Revenue Service databases. The databases are comprised of records submitted by taxpayers, financial institutions, casinos and businesses pursuant to federal law. This system is exempt from 5 U.S.C. 552a(c)(3), (c)(4), (d)(1), (d)(2), (d)(3), (d)(4),(e)(1), (e)(2), (e)(3), (e)(4)(G), (H), and (I), (e)(5), (e)(8), (f), and (g) of the Privacy Act pursuant to 5 U.S.C. 552a(j)(2), and (k)(2). Dated: August 21, 1996. Alex Rodriguez, Deputy Assistant Secretary (Administration) [FR Doc.22895 Filed 9-6-96: 8:45am] Billing Code: 4830-01-F