Proposed Rule2024-09696
Privacy Act of 1974; Exempting a System of Records From Certain Requirements
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Published
May 14, 2024
Issuing agencies
Treasury Department
Abstract
In accordance with the requirements of the Privacy Act of 1974, as amended, the Department of the Treasury gives notice of a proposed amendment to this part to exempt a new Internal Revenue Service (IRS) system of records entitled "IRS 34.018 Treasury/IRS Insider Risk Management Records" from certain provisions of the Privacy Act.
Full Text
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<title>Federal Register, Volume 89 Issue 94 (Tuesday, May 14, 2024)</title>
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[Federal Register Volume 89, Number 94 (Tuesday, May 14, 2024)]
[Proposed Rules]
[Pages 41912-41914]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-09696]
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DEPARTMENT OF THE TREASURY
31 CFR Part 1
RIN 1505-AC84
Privacy Act of 1974; Exempting a System of Records From Certain
Requirements
AGENCY: Internal Revenue Service, Department of the Treasury.
ACTION: Notice of proposed rulemaking (NPRM).
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SUMMARY: In accordance with the requirements of the Privacy Act of
1974, as amended, the Department of the Treasury gives notice of a
proposed amendment to this part to exempt a new Internal Revenue
Service (IRS) system of records entitled ``IRS 34.018 Treasury/IRS
Insider Risk Management Records'' from certain provisions of the
Privacy Act.
DATES: Comments must be received no later than June 13, 2024.
ADDRESSES: You may submit comments, identified by docket number,
Regulatory Information Number (RIN), and title, by any of the following
methods:
Federal e-rulemaking portal <a href="http://www.regulations.gov">http://www.regulations.gov</a>. Follow the
Instructions for making comments; or U.S. Mail: Deputy Assistant
Secretary for Privacy, Transparency, and Records, Department of the
Treasury, 1500 Pennsylvania Avenue NW, Washington, DC 20220, Attention:
Revisions to Privacy Act Systems of Records.
Instructions: For electronic submissions, type TREAS-DO-2024-0003
in the search field on the <a href="http://regulations.gov">regulations.gov</a> homepage to find this notice
and submit comments. All submissions received must include the agency
docket number or RIN. All comments received electronically or on paper
will be posted without change to <a href="http://www.regulations.gov">http://www.regulations.gov</a>, including
personal information provided.
Docket: For access to the docket to read background documents, or
comments received, go to <a href="http://www.regulations.gov">http://www.regulations.gov</a>.
FOR FURTHER INFORMATION CONTACT: Chief Risk Officer, Internal Revenue
Service, Office of the Chief Risk Officer, Enterprise Risk Management,
1111 Constitution Ave. NW, Washington, DC 20224-0002; telephone: (801)
612-4815.
SUPPLEMENTARY INFORMATION: Under 5 U.S.C. 552a(k)(2) (31 CFR 1.36), the
head of any agency may promulgate rules to exempt any system of records
within the agency from certain provisions of the Privacy Act if the
system is investigatory material compiled for law enforcement purposes
that is not within the scope of 5 U.S.C. 552a(j)(2) (which applies to
agencies and components thereof that perform as their principal
function any activity pertaining to the enforcement of criminal laws).
The IRS is hereby giving notice of a proposed rule to exempt
``34.018, Treasury/IRS Insider Risk Management Records'' from certain
provisions of the Privacy Act of 1974, pursuant to 5 U.S.C. 552a(k)(2).
The proposed exemptions are from sections 552a(c)(3), (d)(1)-(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 this system of records maintained by the
IRS may be exempted pursuant to 5 U.S.C. 552a(k)(2):
1. 5 U.S.C. 552a(c)(3) requires an agency to make accountings of
disclosures of a record available to the individual named in the record
upon their request. Any such accountings must state the date, nature,
and purpose of each disclosure of the record and the name and address
of the recipient. Applying this subsection could alert the subject of
an investigation of an actual or potential criminal, civil, or
regulatory violation to the existence of that investigation and reveal
investigative interest on the part of the IRS. Disclosure of an
accounting would therefore present a serious impediment to the IRS,
Treasury, and other law enforcement agencies by permitting the subject
of record to impede investigations, to tamper with witnesses or
evidence, and to avoid detection or apprehension, which would undermine
the entire investigative process. In the case of a delinquent account,
such release might enable the subject of the investigation to dissipate
assets before levy. When an investigation has been completed,
information on disclosures made may continue to be exempted if the fact
that an investigation occurred remains sensitive after completion.
2. 5 U.S.C. 552a(d)(1), (e)(4)(H) and (f)(2), (3) and (5) grant
individuals access to records pertaining to them. An exemption from
these provisions is appropriate because providing access to such
records could inform the subject of an investigation of an actual or
potential criminal, civil, or regulatory violation to the existence of
that investigation and reveal investigative interest on the part of the
IRS or another bureau or agency. Access to the records could permit the
subject of a record to impede the investigation, to tamper with
witnesses or evidence, and to avoid detection or apprehension. In
addition, permitting access to such information could disclose
security-sensitive information that could be detrimental to the IRS.
Agency rules are exempt from the individual access provisions of
subsection 5 U.S.C. 552a for this system of records, therefore, the IRS
and Treasury are not required to establish requirements, rules or
procedures with respect to such access.
3. 5 U.S.C. 552a(d)(2), (3) and (4), (e)(4)(H), and (f)(4) permit
an individual to request amendment of a record pertaining to them and
require the agency to provide notice on how to request an amendment,
and provide procedures for reviewing, making determinations and the
appeal process concerning amendments. Because these provisions depend
on the individual having access to their records, and since this rule
exempts the IRS system of records from the provisions of 5 U.S.C. 552a
relating to access to records for the reasons set forth above, these
provisions do not apply. Furthermore, an exemption from this
requirement is appropriate because allowing individuals to amend
certain records that pertain to them would interfere with the mechanism
of ongoing investigations and law enforcement activities and would
impose an unreasonable administrative burden by requiring
investigations to be continually reinvestigated. In addition,
permitting amendment to such information could disclose security-
[[Page 41913]]
sensitive information that could be detrimental to the IRS.
4. 5 U.S.C. 552a(e)(1) requires an 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 by statute or
Executive order. Maintenance of information, as defined in 5 U.S.C.
552a(a)(3), includes the collection and dissemination of information.
An exemption from this provision is therefore appropriate because its
application would require the IRS to make determinations at the time of
collection about the relevance and necessity of collected information.
Speculative determinations about the relevance and necessity of
collected information may be impossible to determine immediately, as
information that initially appears irrelevant and unnecessary, often
may prove particularly valuable, therefore application of this
provision to the system of records could impair the Department's
ability to collect, utilize and disseminate valuable law enforcement
information.
5. 5 U.S.C. 552a(e)(4)(G) and (f)(1) enable individuals to inquire
whether a system of records contains records pertaining to them An
exemption from these provisions is appropriate because alerting
individuals involved in illegal activity that the IRS has, or does not
have, information that could lead to them being identified for
investigation allows them to take steps to avoid detection, begin,
continue, or resume illegal conduct upon learning that they are not
identified in the system of records; or destroy evidence needed to
prove the violation, all of which could undermine the IRS's ability to
carry out its mission.
6. 5 U.S.C. 552a(e)(4)(I) requires an agency to publish a general
notice listing the categories of sources for information contained in a
system of records. The application of this provision to the system of
records could disclose investigative techniques and cause informants to
refuse to give full information for fear their identities as sources
could be disclosed, subjecting them to threats or reprisals. This could
compromise the IRS's ability to complete or continue investigations or
to share useful information to law enforcement agencies.
The IRS is also hereby giving notice of a proposed rule to exempt
``34.018 Treasury/IRS Insider Risk Management Records'' from certain
provisions of the Privacy Act of 1974, pursuant to 5 U.S.C. 552a(k)(5).
The proposed exemptions are from provisions 552a(c)(3), (d)(1)-(4),
(e)(1), (e)(4)(G), (e)(4)(H), (e)(4)(I), and (f) because the system
contains investigatory material compiled solely for the purpose of
determining suitability, eligibility, or qualifications for Federal
civilian employment, Federal contracts, or access to classified
information.. The following are the reasons this system of records
maintained by the IRS may be exempted pursuant to 5 U.S.C. 552a(k)(5):
1. The sections of 5 U.S.C. 552a from which the systems of records
are exempt generally provide for individuals' access to or amendment of
records. Such access may reveal the identity of a confidential source
under an express promise that the source's identity would be held in
confidence. This could hinder the IRS's ability to obtain future
confidential sources. In addition, 5 U.S.C. 552a(e)(1) is unduly
restrictive in requiring the IRS to maintain only such information
about an individual as is relevant and necessary to accomplish a
purpose of the agency as required by a statute or executive order,
since it is often not until well after the investigation that it is
possible to determine the relevance and necessity of particular
information.
2. IRS claims the exemptions 5 U.S.C. 552a(j)(2) and (k)(2) if any
investigatory material contained in the above-named system becomes
involved in criminal or civil matters.
Procedural Matters
As required by Executive Order 12866, it has been determined that
this proposed 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 proposed 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
have a significant economic impact on a substantial number of small
entities. The proposed 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 proposed
rule would not impose new recordkeeping, application, reporting, or
other types of information collection requirements.
List of Subjects in 31 CFR Part 1
Privacy.
The Department of the Treasury proposes to amend part 1 of title 31
of the Code of Federal Regulations as follows:
PART 1--DISCLOSURE OF RECORDS
0
1. The authority citation for part 1 continues to read as follows:
Authority: 5 U.S.C. 301, 552, 552a, 553; 31 U.S.C. 301, 321; 31
U.S.C. 3717.
0
2. Amend Sec. 1.36 by:
0
a. In paragraph (g)(1)(vii), adding an entry to table 16 to paragraph
(g)(1)(vii) in alpha-numeric order; and
0
b. In paragraph (k)(1)(iii), adding an entry to table 23 to paragraph
(k)(1)(iii) in alpha-numeric order.
The additions read as follows:
Sec. 1.36 Systems exempt in whole or in part from provisions of the
Privacy Act and this part.
* * * * *
(g) * * *
(1) * * *
(vii) Internal Revenue Service.
Table 16 to Paragraph (g)(1)(vii)
------------------------------------------------------------------------
No. Name of system
------------------------------------------------------------------------
* * * * * * *
IRS 34.018............................. Treasury/IRS Insider Risk
Management Records.
* * * * * * *
------------------------------------------------------------------------
* * * * *
(k) * * *
(1) * * *
[[Page 41914]]
(iii) Internal Revenue Service.
Table 23 to Paragraph (k)(1)(iii)
------------------------------------------------------------------------
No. Name of system
------------------------------------------------------------------------
IRS 34.018............................. Treasury/IRS Insider Risk
Management Records.
* * * * * * *
------------------------------------------------------------------------
* * * * *
Ryan Law,
Deputy Assistant Secretary Privacy, Transparency, and Records, U.S.
Department of the Treasury.
[FR Doc. 2024-09696 Filed 5-13-24; 8:45 am]
BILLING CODE 4810-AK-P
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</html>Indexed from Federal Register on May 14, 2024.
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