Notice2022-21938

Privacy Act of 1974; System of Records

Primary source

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Published
October 11, 2022
Effective
November 10, 2022

Issuing agencies

Treasury Department

Abstract

In accordance with the Privacy Act of 1974, as amended, the Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau, proposes to modify a current Treasury system of records titled "Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau (TTB) .001--Regulatory Enforcement System of Records."

Full Text

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<title>Federal Register, Volume 87 Issue 195 (Tuesday, October 11, 2022)</title>
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[Federal Register Volume 87, Number 195 (Tuesday, October 11, 2022)]
[Notices]
[Pages 61435-61438]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-21938]


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DEPARTMENT OF THE TREASURY


Privacy Act of 1974; System of Records

AGENCY: Department of the Treasury, Alcohol and Tobacco Tax and Trade 
Bureau (TTB).

ACTION: Notice of a modified system of records.

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SUMMARY: In accordance with the Privacy Act of 1974, as amended, the 
Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau, 
proposes to modify a current Treasury system of records titled 
``Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau 
(TTB) .001--Regulatory Enforcement System of Records.''

DATES: Submit comments on or before November 10, 2022. The modified 
routine uses will be effective on November 10, 2022.

ADDRESSES: You may submit comments on this System of Records Notice 
(SORN) as an individual or on behalf of a business or other 
organization. You may submit comments electronically via the 
<a href="http://Regulations.gov">Regulations.gov</a> website at <a href="https://www.regulations.gov">https://www.regulations.gov</a>, using the 
comment form posted for this document within Docket No. TTB-20XX-XXXX. 
Alternatively, you may submit written comments via postal mail to the 
Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade 
Bureau, 1310 G Street NW, Box 12, Washington, DC 20005, Attention_
Revisions to Privacy Act Systems of Records. You may upload or include 
attachments with your comments. Please submit or have your comments 
postmarked by the closing date shown in the DATES section of this 
document.
    The Bureau will post all comments received, including any personal 
information you provide, along with any attachments or other supporting 
disclosures, without change on the <a href="http://Regulations.gov">Regulations.gov</a> website. Therefore, 
you should submit only information you wish to make publicly available. 
Please contact TTB's Regulations and Rulings division by email using 
the web form available at <a href="https://www.ttb.gov/contact-rrd">https://www.ttb.gov/contact-rrd</a>, or by 
telephone at 202-453-2265, if you have any questions regarding how to 
comment on this SORN or to request copies of this document, its 
supporting materials, or the comments received in response.

FOR FURTHER INFORMATION CONTACT: For general questions, please contact 
Michael Hoover at 202-453-1039, ext. 135. For privacy issues, please 
contact Amy Henke at 513-684-2301.

SUPPLEMENTARY INFORMATION: In accordance with the Privacy Act of 1974, 
as amended, 5 U.S.C. 552a, the Department of the Treasury (``Treasury'' 
or the ``Department''), Alcohol and Tobacco Tax and Trade Bureau (TTB), 
proposes to modify an existing Treasury system of records titled 
``Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau 
(TTB) .001--Regulatory Enforcement System of Records.'' This is the 
only system of records adopted by TTB as of August 25, 2022.
    TTB administers the Internal Revenue Code of 1986 (IRC), as 
amended, at 26 U.S.C. chapter 51 (distilled spirits, wine, and beer), 
chapter 52 (tobacco products, processed tobacco, and cigarette papers 
and tubes), and sections 4181-4182 (firearms and ammunition excise 
taxes), and the Federal Alcohol Administration Act (FAA Act, 27 U.S.C. 
chapter 8). Under its IRC authorities, TTB collects the Federal excise 
taxes levied on alcohol, tobacco, firearms, and ammunition products and 
the special occupational taxes levied on certain tobacco industry 
members. Under these IRC and the FAA Act authorities, TTB also 
administers the Federal permit, registration, or notice requirements 
that apply to alcohol and tobacco industry members, as well the Federal 
requirements that apply to the production, labeling, and marketing of 
alcohol beverage products.
    Under this system of records, TTB collects certain personal 
information

[[Page 61436]]

about individuals who file tax returns with or submit return 
information to TTB regarding excise taxes on alcohol, tobacco, 
firearms, and ammunition, and about individuals who file special 
occupational tax returns or information. Also under this system of 
records, TTB collects certain personal information about individuals 
who are associated with operations and businesses that are the subject 
of permit applications, notices, or registrations under the IRC or FAA 
Act or activity undertaken under such permits, notices, or 
registrations. Information collected may include information related to 
alcohol and tobacco permittees; alcohol, tobacco, and firearms and 
ammunition excise taxpayers; special occupational taxpayers; claimants 
for refund, abatement, credit, allowance, or drawback of excise or 
special occupational taxes; and those filing offers in compromise.
    While there are no significant changes to this system of records, 
TTB is modifying this system to reflect additional statutory authority 
and to incorporate new categories of information. Specifically:
    <bullet> Section 107(d)(1) of the Taxpayer Certainty and Disaster 
Tax Relief Act of 2020 (the ``Act''), Division EE of the Consolidated 
Appropriations Act, 2021 (Pub. L. 116-260), added a new section to the 
Internal Revenue Code (IRC), at 26 U.S.C. 6038E. That new section 
requires foreign alcohol producers electing to assign certain tax 
benefits to U.S. importers to ``provide such information, at such time 
and in such manner, as the Secretary may prescribe in order to make 
such assignment, including information about the controlled group 
structure of such foreign producer.'' Based on this new authority, and 
the IRC at 26 U.S.C. 5001(c)(3), 5041(c)(6), and 5051(a)(4), TTB will 
require registration of foreign alcohol producers, and it will collect 
information from those producers and the importers to which they assign 
tax benefits, which will be stored in this system.
    <bullet> In the course of administering IRC provisions concerning 
foreign producer Federal excise tax benefit assignments and in 
processing alcohol excise tax refund claims made by U.S. importers 
based on those assignments, functions that were transferred to the 
Treasury Department by Section 107(e) of the Act, TTB may obtain from 
other Federal agencies information about covered persons and store that 
information in this system.
    Federal law protects personally identifiable information (PII) and 
other information contained in this system from disclosure. 
Specifically, 5 U.S.C. 552a regulates the collection, maintenance, use, 
and dissemination of personal information by federal agencies, and 26 
U.S.C. 6103 prohibits disclosure of tax returns and related information 
unless disclosure is specifically authorized by the IRC.
    This modified system will be included in Treasury's inventory of 
record systems. Treasury and TTB have provided a report of this system 
of records to the Committee on Oversight and Government Reform of the 
House of Representatives, the Committee on Homeland Security and 
Governmental Affairs of the Senate, and the Office of Management and 
Budget (OMB), pursuant to 5 U.S.C. 552a(r) and OMB Circular A-108, 
``Federal Agency Responsibilities for Review, Reporting, and 
Publication under the Privacy Act,'' dated December 23, 2016.
    For the reasons set forth above in the preamble, TTB proposes to 
modify its system of records entitled ``Department of the Treasury, 
Alcohol and Tobacco Tax and Trade Bureau (TTB) .001--Regulatory 
Enforcement System of Records'' as follows:

Ryan Law,
Deputy Assistant Secretary for Privacy, Transparency, and Records.

SYSTEM NAME AND NUMBER:
    Department of the Treasury, Alcohol and Tobacco Tax and Trade 
Bureau (TTB) .001--Regulatory Enforcement System of Records

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    TTB maintains the system records at its headquarters in Washington, 
DC, and at its National Revenue Center in Cincinnati, OH, located, 
respectively, at these addresses:
    <bullet> Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street 
NW, Washington, DC 20005; and
    <bullet> Alcohol and Tobacco Tax and Trade Bureau, National Revenue 
Center, 550 Main Street, Suite 8002, Cincinnati, OH 45202.
    In addition, components of this system also are geographically 
dispersed throughout TTB's field offices. A list of TTB's field offices 
and their addresses is available on the TTB website at <a href="https://www.ttb.gov/about-ttb/district-office-locations">https://www.ttb.gov/about-ttb/district-office-locations</a>.

SYSTEM MANAGER(S):
    Assistant Administrator, Permitting and Taxation, Alcohol and 
Tobacco Tax and Trade Bureau, 550 Main Street, Suite 8002, Cincinnati, 
OH 45202.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    5 U.S.C. 301; 26 U.S.C. 5001, 5006(a), 5008, 5041, 5042(a)(2) and 
(3), 5044, 5051, 5055, 5056, 5061, 5062, 5064, 5101, 5132, 5172, 
5179(a), 5181, 5271(b)(1), 5275, 5301(a) and (b), 5312, 5356, 5401, 
5417, 5502, 5511(3), 5705, 5712, 6001, 6011(a), 6038E, 6201, 6423, 
7011, and 7122; 27 U.S.C. 204, 205, and 207; and section 1111(d) of the 
Homeland Security Act of 2002, as codified at 6 U.S.C. 531(d).

PURPOSE(S) OF THE SYSTEM:
    The purpose of this system is to administer the laws under TTB's 
jurisdiction, including determining eligibility or qualifications of 
individuals who are engaged or propose to engage in activities 
regulated by TTB; assuring collection of the revenue due from regulated 
industry members; preventing improper trade practices in the beverage 
distilled spirits, malt beverage, and wine industries; and interacting 
with Federal, State, and local governmental agencies in the resolution 
of problems relating to revenue protection and other areas of joint 
jurisdictional concern.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    The categories of individuals covered by this system of records 
include:
    (1) Individuals who file tax returns or submit return information 
to TTB regarding Federal excise taxes on alcohol, tobacco, firearms, 
and ammunition or tobacco industry-related special occupational taxes; 
and
    (2) Individuals who have filed permit applications with or who have 
been issued permits by TTB; who have filed notices or registrations 
with TTB; and/or who are in certain positions of management or control 
of such regulated businesses, or have specified levels of ownership 
interest in such regulated businesses.
    These individuals include alcohol and tobacco permittees, 
registrants, or notice holders; alcohol, tobacco, and firearms and 
ammunition excise taxpayers; special occupational taxpayers; claimants 
for refund, abatement, credit, allowance, or drawback of excise or 
special occupational taxes; and those filing offers in compromise.

CATEGORIES OF RECORDS IN THE SYSTEM:
    This system includes records containing investigative material 
compiled by TTB or provided to it by other Federal agencies required to 
meet TTB's responsibilities under the Internal Revenue Code of 1986 and 
the Federal Alcohol Administration Act, which may consist of the 
following:

[[Page 61437]]

    <bullet> Names of individuals;
    <bullet> Dates of birth;
    <bullet> Social Security Numbers (SSN) (if collected);
    <bullet> Telephone numbers;
    <bullet> Email addresses;
    <bullet> Mailing, home, and business premises addresses;
    <bullet> Employer Identification Numbers (EIN);
    <bullet> Abstracts of offers in compromise;
    <bullet> Administrative law judge decisions;
    <bullet> Assessment records including notices of proposed 
assessments, notices of shortages or losses, copies of notices from the 
Internal Revenue Service to assess taxes, and recommendations for 
assessments;
    <bullet> Audit and investigation reports;
    <bullet> Chief Counsel opinions and memoranda;
    <bullet> Claim records including claims, letters of claim 
rejection, sample reports, supporting data, and vouchers and schedules 
of payment;
    <bullet> Controlled group information;
    <bullet> Correspondence concerning records in this system and 
related matters;
    <bullet> Demands for payment of excise tax liabilities;
    <bullet> Financial statements;
    <bullet> Letters of warning;
    <bullet> Lists of permittees, registrants, notice holders, and 
licensees;
    <bullet> Lists of officers, directors, and principal stockholders;
    <bullet> Mailing lists;
    <bullet> Notices of delinquent reports;
    <bullet> Offers in compromise;
    <bullet> Operational records, such as operating and inventory 
reports, and transaction records and reports;
    <bullet> Orders of revocation, suspension, or annulment of permits, 
notices, registrations or licenses;
    <bullet> Permit, registration, notice, and licensing histories;
    <bullet> Reports of violations;
    <bullet> Qualifying records including access authorizations, 
advertisement records, applications, business histories, criminal 
records, educational histories, employment histories, financial data, 
formula approvals, licenses, notices, permits, personal references, 
registrations, sample reports, special permissions and authorizations, 
and statements of process;
    <bullet> Show cause orders; and
    <bullet> Tax records relating to periodic payment and prepayment of 
taxes, tax returns, notices of tax discrepancy or adjustment, and 
refunds.

RECORD SOURCE CATEGORIES:
    This system of records has been determined to be exempt from 
reporting record source categories pursuant to 5 U.S.C. 552a(j)(2) and 
(k)(2) and 31 CFR 1.36. Notwithstanding this exemption, the risks 
justifying the application of this exemption to this system are less 
pertinent to certain record source categories, including: applications, 
notices and registrations filed with TTB in the ordinary course.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH USES:
    In addition to those disclosures generally permitted under the 
Privacy Act of 1974, 5 U.S.C. 552a(b), records and/or information or 
portions thereof maintained as part of this system may be disclosed 
outside Treasury as a routine use pursuant to 5 U.S.C. 552a(b)(3) as 
follows:
    (1) To a Federal, State, local, or foreign agency maintaining 
civil, criminal, or other relevant enforcement information or other 
pertinent information, which has requested information necessary or 
relevant to the requesting agency's official functions; including for 
the purpose of enforcing administrative, civil, or criminal laws; 
hiring or retention of an employee; issuance of a security clearance, 
license, contract, grant, or other benefit by the requesting agency, to 
the extent that the information is relevant and necessary to the 
requesting agency's decision on the matter;
    (2) To a Congressional office in response to an inquiry made at the 
request of the individual to whom the record pertains;
    (3) To the National Archives and Records Administration (NARA) or 
General Services Administration pursuant to records management 
inspections being conducted under the authority of 44 U.S.C. 2904 and 
2906;
    (4) To appropriate agencies, entities, and persons when: (1) The 
Department of the Treasury and/or TTB suspects or has confirmed that 
there has been a breach of the system of records; (2) the Department of 
the Treasury and/or TTB has determined that as a result of the 
suspected or confirmed breach there is a risk of harm to individuals, 
the Department of the Treasury and/or TTB (including its information 
systems, programs, and operations), the Federal Government, or national 
security; and (3) the disclosure made to such agencies, entities, and 
persons is reasonably necessary to assist in connection with the 
Department of the Treasury's and/or TTB's efforts to respond to the 
suspected or confirmed breach or to prevent, minimize, or remedy such 
harm;
    (5) To another Federal agency or Federal entity, when the 
Department of the Treasury and/or TTB determines that information from 
this system of records is reasonably necessary to assist the recipient 
agency or entity in (1) responding to a suspected or confirmed breach 
or (2) preventing, minimizing, or remedying the risk of harm to 
individuals, the recipient agency or entity (including its information 
systems, programs, and operations), the Federal Government, or national 
security, resulting from a suspected or confirmed breach;
    (6) To third parties when such disclosure is required by statute or 
Executive Order;
    (7) To third parties to the extent necessary to collect or verify 
information pertinent to TTB's decision to grant, deny, or revoke a 
license or permit; to initiate or complete an investigation of 
violations or alleged violations of laws and regulations administered 
by TTB;
    (8) To a court, magistrate, or administrative tribunal in the 
course of presenting evidence, including disclosures to opposing 
counsel or witnesses in the course of or in preparation for civil 
discovery, litigation, or settlement negotiations upon a finding by the 
Department of the Treasury and/or TTB that the records are relevant and 
necessary to the proceeding, in response to a subpoena where requested 
records appear to be relevant or potentially relevant to a proceeding, 
or in connection with criminal law proceedings;
    (9) To International Criminal Police Organization (INTERPOL) and 
similar national and international intelligence gathering organizations 
for the purpose of identifying international and domestic criminals 
involved in consumer fraud, revenue evasion, crimes, or persons 
involved in terrorist activities;
    (10) To foreign governments in accordance with formal or informal 
international agreements;
    (11) To appropriate Federal, State, local, or foreign agencies 
responsible for investigating or prosecuting the violations of, or for 
enforcing or implementing, a statute, rule, regulation, order, or 
license, where the Department of the Treasury and/or TTB becomes aware 
of an indication of a violation or potential violation of criminal law 
or regulation;
    (12) To third parties for a purpose consistent with any permissible 
disclosure of returns or return information under the IRC, as amended;
    (13) To a contractor for the purpose of processing administrative 
records and/or compiling, organizing, analyzing, programming, or 
otherwise refining records subject to the same limitations

[[Page 61438]]

applicable to Department of the Treasury officers and employees under 
the Privacy Act;
    (14) To the Department of Justice when seeking legal advice or when 
(a) the Department of the Treasury or (b) TTB, or (c) any employee of 
TTB in his or her official capacity, or (d) any employee of TTB in his 
or her individual capacity where the Department of Justice has agreed 
to represent the employee, or (e) the United States, where TTB 
determines that litigation is likely to affect the Department of the 
Treasury and/or TTB, is a party to litigation or has an interest in 
such litigation, and the use of such records by the Department of 
Justice is deemed by the agency to be relevant and necessary to the 
litigation; and
    (15) To the news media to provide information in accordance with 
guidelines contained in 28 CFR 50.2 that relate to an agency's 
functions relating to civil and criminal proceedings.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    TTB maintains records in this system in a secure computer system 
that require the use of a personal identity verification (PIV) card and 
multi-digit personal identification number (PIN) to access, or on paper 
in secure facilities with controlled access.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Records may be retrieved by name, by permit, registration, notice, 
user, claim, or license number, by document locator number, or by 
Employer Identification Number (EIN).

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    TTB retains and disposes of records in the system in accordance 
with records disposition schedule DAA-0564-2013-0003, approved by the 
National Archives and Records Administration (NARA) for TTB.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    TTB safeguards records in this system in accordance with applicable 
rules and policies, including all applicable Treasury automated systems 
security and access policies. TTB has imposed strict controls to 
minimize the risk of compromising the information that is being stored. 
Records stored on electronic media are protected by controlled access 
and are encrypted at rest in the system and when transmitted. Access to 
the computer system containing the records in this system is limited to 
those individuals who have a need to know the information for the 
performance of their official duties and who have appropriate 
clearances.

RECORD ACCESS PROCEDURES:
    See ``Notification Procedures'' below.

CONTESTING RECORD PROCEDURES:
    26 U.S.C. 7852(e) prohibits Privacy Act amendment of tax records. 
Other records are exempt from contest as stated in ``Notification 
Procedures'' below.

NOTIFICATION PROCEDURES:
    The Secretary of Treasury has exempted this system from the 
notification, access, and amendment procedures of the Privacy Act 
pursuant to 5 U.S.C. 552a(j)(2) and (k)(2) because it is a law 
enforcement system. See 31 CFR 1.36. However, Treasury and TTB will 
consider individual requests for notification, access, or amendment. 
Individuals seeking notification of and access to any record contained 
in this system of records, or seeking to contest the content of any 
record contained in this system of records, may inquire in writing in 
accordance with instructions appearing at 31 CFR part 1, subpart C, 
Appendix E. Requests may be mailed or delivered in person and addressed 
to: Director, Regulations and Ruling Division, Alcohol and Tobacco Tax 
and Trade Bureau, 1310 G Street NW, Box 12, Washington, DC 2005, or 
faxed to 202-453-2331.
    When seeking records about yourself from this system of records or 
any other Departmental system of records your request must conform with 
the Privacy Act regulations set forth in Sec.  1.26 of 31 CFR part 1. 
You must first verify your identity, meaning that you must provide your 
full name, current address, and date and place of birth. You must sign 
your request, and your signature must either be notarized or submitted 
under 28 U.S.C. 1746, a law that permits statements to be made under 
penalty of perjury. While no specific form is required, you should 
provide the following:
    <bullet> An explanation of why you believe the Department would 
have information on you;
    <bullet> Identify which bureau(s) of the Department you believe may 
have the information about you;
    <bullet> Specify when you believe the records would have been 
created;
    <bullet> Provide any other information that will help the Bureau or 
FOIA staff determine which Treasury Bureau may have responsive records; 
and
    <bullet> If your request is seeking records pertaining to another 
living individual, you must include a statement from that individual 
certifying his/her agreement for you to access his/her records.
    Without this bulleted information, the Bureau(s) may not be able to 
conduct an effective search, and your request may be denied due to lack 
of specificity or lack of compliance with applicable regulations.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    The Secretary of the Treasury has designated this system as exempt 
from the following provisions of the Privacy Act pursuant to 5 U.S.C. 
552a(k)(2): 5 U.S.C. 552a(c)(3), (d)(1), (d)(2), (d)(3), (d)(4), 
(e)(1), (e)(4)(G), (e)(4)(H), (e)(4)(I), and (f). See 31 CFR 1.36.

HISTORY:
    Notice of this system of records was last published in full in the 
Federal Register on February 10, 2021 (86 FR 8988) as Department of the 
Treasury, Alcohol and Tobacco Tax and Trade Bureau (TTB) .001--
Regulatory Enforcement System of Records.

[FR Doc. 2022-21938 Filed 10-7-22; 8:45 am]
BILLING CODE 4810-31-P


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Indexed from Federal Register on October 11, 2022.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.