Privacy Act of 1974; Systems of Records, 2465-2466 [05-726]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 70, Number 9 (Thursday, January 13, 2005)]
[Notices]
[Pages 2465-2466]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-726]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Privacy Act of 1974; Systems of Records

AGENCY: Internal Revenue Service, Treasury.

ACTION: Notice of proposed alterations to an existing Privacy Act 
System of Records.

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SUMMARY: In accordance with the requirements of the Privacy Act of 
1974, as amended, the Department of the Treasury, Internal Revenue 
Service (IRS), is proposing to add to the categories of individuals 
covered by the system and categories of records in the system of 
records entitled ``Treasury/IRS 34.037--IRS Audit Trail and Security 
Records System.'' These additions will permit the IRS to monitor system 
resources and enable IRS to deter, deny and detect unauthorized access 
to internal computer hardware and software and misuse of IRS resources 
to access external objects, like Web sites that feature pornography, 
gambling, etc. The IRS is also proposing to add a routine use to the 
system of records to permit disclosure to contractors.

DATES: Comments must be received no later than February 14, 2005. The 
alterations to the system of records will be effective February 22, 
2005 unless the IRS receives comments which result in a contrary 
determination.

ADDRESSES: Comments should be sent to the Office of Governmental 
Liaison & Disclosure, Internal Revenue Service, 1111 Constitution 
Avenue, NW., Washington, DC 20224. Comments will be made available for 
public inspection and copying in the Internal Revenue Service Freedom 
of Information Reading Room, 1111 Constitution Avenue, NW., Room 1621, 
Washington, DC 20224, telephone number (202) 622-5164, (not a toll-free 
call).

FOR FURTHER INFORMATION CONTACT: Colleen Murphy, 5000 Ellin Road, C8-
300, Lanham, MD 20706, (202) 283-4351 (not a toll-free number).

SUPPLEMENTARY INFORMATION: The Internal Revenue Service (IRS), in 
fulfillment of legal and regulatory obligations to protect the 
integrity of its computing resources and to maintain the public trust, 
must monitor the usage of those resources to ensure that they are 
proper and within the scope of the purpose for which users were granted 
access privileges. Review of audit trails and real time monitoring of 
system resources will enable IRS to deter, deny

[[Page 2466]]

and detect unauthorized access to internal computer hardware and 
software and the misuse of IRS resources to access external objects, 
like Web sites that feature pornography, gambling, etc.
    A new routine use is also being proposed for this system of records 
to allow disclosure of records other than tax returns or return 
information to contractors when the information is necessary to perform 
the services of a government contract for which a contractor has been 
hired. Because the IRS utilizes contractor services to perform certain 
data processing activities, disclosure of audit trail data may be 
necessary under the terms of those services. If disclosure is 
necessary, the contractor to which disclosure is made will be subject 
to the same limitations applicable to IRS officers and employees under 
the Privacy Act. This new routine uses covers information other than 
tax returns and return information. Disclosure of IRS tax returns and 
return information may be made only as provided by 26 U.S.C. 6103(n). 
Treasury/IRS regulations at 26 CFR 301.6103(n)-1 provide guidance on 
the limited conditions of disclosure permissible under section 6103(n).
    Other changes are being made to the notice to update the 
information provided under ``system location,'' ``safeguards,'' 
``retention and disposal,'' and ``system manager and addresses.''
    In addition, the Service will be following OMB Guidelines under 
which Government agencies have been directed to become more efficient 
while sustaining service to customers by using competitive sourcing.
    The system notice was last published in its entirety in the Federal 
Register on December 10, 2001 at 66 FR 63818.
    The altered system of records report, as required by 5 U.S.C. 
552a(r) of the Privacy Act, has been submitted to the Committee on 
Government Reform of the House of Representatives, the Committee on 
Governmental Affairs of the Senate, and the Office of Management and 
Budget, pursuant to appendix I to OMB Circular A-130, ``Federal Agency 
Responsibilities for Maintaining Records About Individuals,'' dated 
November 30, 2000.
    For reasons set forth above, IRS proposes to alter the system of 
records, Treasury/IRS 34.037--IRS Audit Trail and Security Records 
System, as follows:
TREASURY/IRS 34.037

System Name:
    IRS Audit Trail and Security Records System--Treasury/IRS.

System location:
    Description of changes: The current text is replaced with the 
following: ``National Office, Area Offices, Territory Offices, 
Campuses, Computing Centers. (See IRS appendix A for addresses of IRS 
offices.)''

Categories of individuals covered by the system:
    Description of changes: The period ``.'' at the end of sentence is 
replaced with the following text: ``or who have used IRS computing 
equipment/resources. Information monitored includes Internet sites 
accessed.''

Categories of records in the system:
    Description of changes: The period ``.'' at the end of sentence is 
replaced with the following text: ``or used IRS computing equipment/
resources.''
* * * * *

Routine uses of records maintained in the system, including categories 
of users and the purposes of such uses:
* * * * *
    Description of changes: The period ``.'' at the end of routine use 
(7) is replaced with a semicolon ``;'', and the following routine use 
is added at the end thereof:
    ``(8) disclose records to agency contractors who need to have 
access to the records in order to perform the services required by the 
contract. Recipients must comply with the requirements of the Privacy 
Act of 1974, as amended, 5 U.S.C. 552a.''
* * * * *

Safeguards:
    Description of changes: Remove the current text and insert the 
following: ``Access controls will not be less than those described in 
IRM 25.10.1 Information Technology Security Policy and Guidance, and 
IRM 1.4.6 Managers Security Handbook.''

Retention and disposal:
    Description of changes: Remove the current text and insert the 
following: ``Records are maintained in accordance with record 
disposition handbooks, IRM 1.15.6, Retiring and Requesting Records and 
IRM 1.15.17, Records Management, Records Control Schedule for 
Information Technology.''

System Manager(s) and address:
    Description of changes: Remove the current text and insert the 
following: ``Director, Operational Assurance, Mission Assurance, Deputy 
Commissioner Operations Support, Internal Revenue Service, Department 
of the Treasury, 5000 Ellin Road, C8-300, Lanham, MD 20706.''
* * * * *

    Dated: January 6, 2005.
Arnold I. Havens,
General Counsel.
[FR Doc. 05-726 Filed 1-12-05; 8:45 am]
BILLING CODE 4830-01-P