Privacy Impact Assessment – Tip Database (TipDB)
TIPDB System Overview
The Tip DB is a stand alone system that captures information from the Gaming Industry Tip Compliance Agreements (GITCA) and Tip Rate Determination Agreements (TRDA) on rates, venues, shifts, and casinos, as well as annual reports from casinos, restaurants, and taxi companies, etc., regarding the following information on tipped employees: occupation, venue, tip participation status, shift worked, total hours worked, total wages, total tips reported, employee name, SSN, address, termination date, and hire date. Once the information is captured, Tip DB merges the information and lists the potential unreported tip income for tipped individuals in descending order. The database is accessed by analysts to determine which tipped taxpayers need to be audited within any industry that has a tip agreement and established rates.
System of Records Number(s)
Treasury/IRS 42.021 Compliance Programs and Project Files
Data in the System
1. Describe the information (data elements and fields) available in the system in the following categories:
A. Taxpayer
B. Employee
C. Audit Trail Information (including employee log-in info)
D. Other (Describe)
A. Taxpayer – The Tip DB contains taxpayer data (establishment) tip rate agreement data on venue, positions, effective date (and potentially Employer Identification Number (EIN)) The following information on the taxpayer is also available in the system: Social Security Number (SSN), occupation, tip participation status, shift worked, total hours worked, total wages, total tips reported, employee name, address, termination date, and hire date.
B. Employee – Unique Tip DB User-IDs and passwords are not required for system authentication.
C. Audit Trail Information – None. Since Tip DB User-IDs and passwords are not required for system authentication, no auditing occurs at the system level.
D. Other – None
2. Describe/identify which data elements are obtained from files, databases, individuals, or any other sources.
A. IRS
B. Taxpayer
C. Employee
D. Other Federal Agencies (List agency)
E. State and Local Agencies (List agency)
F. Other third party sources (Describe)
A. IRS – The Tip DB system does not obtain data from IRS tax or personnel files or databases.
B. Taxpayer – The Tip DB system does not directly collect taxpayer information.
C. Employee – The Tip DB system does not collect information directly from the employee.
D. Other Federal Agencies –The Tip DB does not receive data from other federal agencies.
E. State and Local Agencies –The Tip DB does not receive data from state and local agencies.
F. Other Third Party Sources – The Tip DB receives the following data from third party sources that is manipulated into a standard format and transferred into the Tip DB: tip rate agreement data on venue, positions, effective date (and potentially Employer Identification Number (EIN)) The following information on the taxpayer is also available in the system: Social Security Number (SSN), occupation, tip participation status, shift worked, total hours worked, total wages, total tips reported, employee name, address, termination date, and hire date.
3. Is each data item required for the business purpose of the system? Explain.
Yes. The data are used to quickly and accurately identify non-filers or tip income under-reporters by eliminating errors from a previously manual process.
4. How will each data item be verified for accuracy, timeliness, and completeness?
Tip DB has checks to make sure all input information is correct. Within Tip DB, certain fields are drop down menus while others must be filled in. If something is incorrect, a prompt will appear identifying an error. The input will not be accepted unless all fields have been filled correctly. Information obtained from establishments regarding their employee’s positions, venues, hours, and shift are believed to be accurate and no tests are completed to determine the accuracy of the data received.
Tip DB does not allow for incomplete information to be input. Each field must be completed and certain fields contain validity checks limiting the type of information that can be input. Tip DB identifies and handles error conditions in an expeditious manner. When an error occurs, the system prompts the user to correct the incomplete or inaccurate field or to contact the database administrator. In turn, the database administrator will attempt to correct the problem.
5. Is there another source for the data? Explain how that source is or is not used.
No. The Tip DB program is a stand alone application and does not interconnect with any “process” or program.
6. Generally, how will data be retrieved by the user?
Data is retrieved by the establishment name or by taxpayer SSN.
7. Is the data retrievable by a personal identifier such as name, SSN, or other unique identifier?
Yes. Data is retrieved by the establishment name or by taxpayer SSN.
Access to the Data
8. Who will have access to the data in the system (Users, Managers, System Administrators, Developers, Others)?
Three IRS employees have full access to Tip DB while eight other IRS employees have read access only.
Tip DB has three components, Tip Rate, the Employee Database and Tip Match. The database administrator (one of the three employees with access) has read, write and edit rights to all three components as they reside locally on her desktop. The other two employees only have read and write access to Tip Rate or Tip Match on an “as needed” basis to perform their daily tasks.
Tip DB does not have temporary or emergency accounts and does automatically disable inactive accounts after 45 days.
9. How is access to the data by a user determined and by whom?
Only designated IRS employees with Tip DB accounts will have access to the Tip DB system. IRS employees that are working the non-filers and tip under-reports have read-only access.
10. Do other IRS systems provide, receive, or share data in the system? If YES, list the system(s) and describe which data is shared. If NO, continue to Question 12.
No. Tip DB is a stand alone application and does not interconnect with any “process” or program.
11. Have the IRS systems described in Item 10 received an approved Security Certification and Privacy Impact Assessment?
Not applicable.
12. Will other agencies provide, receive, or share data in any form with this system?
Establishments that have tip agreements provide information on their tipped employees. This information is currently provided to the Computer Audit Specialist who manipulates the date to ensure it is in the correct format and on a readable media. This information is then input into the database.
Administrative Controls of Data
13. What are the procedures for eliminating the data at the end of the retention period?
There are no procedures for eliminating data as data is not deleted. All information remains in the database indefinitely. The IRS has determined that the information contained in the database is perpetual, as long as the establishment is in business.
14. Will this system use technology in a new way? If "YES" describe. If "NO" go to Question 15.
No. The Tip DB system is not using technology in a new way.
15. Will this system be used to identify or locate individuals or groups? If so, describe the business purpose for this capability.
Yes. There is a capability for users to query the database for historical information on individual taxpayers (through SSN) or establishments (through establishment name). The history of a taxpayer assists with determining tax fraud.
Information can be queried on establishments for their tip rate history. Like-kind establishment indicators have been input on some entries (this has not been completed for all establishments) and queries can be conducted to pull all rates for a position with the same like-kind establishment indicator.
16. Will this system provide the capability to monitor individuals or groups? If yes, describe the business purpose for this capability and the controls established to prevent unauthorized monitoring.
No. The Tip DB system is not a real-time online system and, therefore, incorporates no real-time monitoring capabilities.
17. Can use of the system allow IRS to treat taxpayers, employees, or others, differently? Explain.
Yes. The system allows employees of the establishments to be stratified for audit selection. The most egregious taxpayers can be identified first, and so on.
18. Does the system ensure "due process" by allowing affected parties to respond to any negative determination, prior to final action?
Yes. If an employee is audited due to information that has been received and input into the system, they have the right to provide corrected or additional information that will be considered.
19. If the system is web-based, does it use persistent cookies or other tracking devices to identify web visitors?
Not applicable. The Tip DB system is not web-based.
|
