Privacy Impact Assessment – Federal Payment Levy Program (FPLP)

FPLP System Overview

The Federal Payment Levy Program (FPLP) is a collection enforcement tool.  The FPLP is an automated levy (application) program where certain delinquent taxpayers are systemically matched and levied on their federal payments disbursed by Treasury’s Financial Management Service (FMS). 

The interagency interface is described as follows:
Each week, IRS Financial Systems creates a file of certain balance due accounts and transmits the file to FMS’s Treasury Offset Program (TOP).  FMS TOP will match the IRS file against Federal agencies’ payment files.  FMS transmits a weekly file back to IRS listing those who matched.  IRS will subsequently transmit levies on accounts that had matched.  On Social Security benefit payment matches, IRS will send a special collection notice to those particular taxpayers.  A taxpayer record file of those special collection notices is transmitted to SSA for tax administration purposes.

System of Records Number(s) 

Treasury/IRS 34.037 – IRS Audit Trail and Security Records System
Treasury/IRS IRS 26.019--Taxpayer Delinquent Accounts (TDA) Files including subsystems: (a) Adjustments and Payment Tracers Files, (b) Collateral Files, (c) Seized Property Records, (d) Tax SB/SE, W&I, LMSB Waiver, Forms 900, Files, and (e) Accounts on Child Support Obligations
Treasury/IRS 26.020--Taxpayer Delinquency Investigation (TDI) Files
Treasury/IRS 26.021--Transferee Files
Treasury/IRS 26.022--Delinquency Prevention Programs

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 Identification Number (TIN), Master File Tax Account Code (MFT), Tax period (TXPD), Balance Due, Address
B. None
C. None
D. (Income/asset of taxpayer) Payment amount, payer information

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. TIN, MFT, TXPD, Balance Due, Address
B. None
C. None
D. Financial Management Services (FMS): Payment Information, Payor Information
E. None
F. None

3.  Is each data item required for the business purpose of the system?  Explain.

Yes. TIN, MFT, TXPD: Each is a piece that contributes to creating a unique debt number 
Balance Due: So FMS knows how much to send.
Address: to know where to send follow-up notice
Payment amount: Amount that is levied and credited on the delinquent taxpayer account. Payor information: Income/asset information of delinquent taxpayer from collection source.  The data is stored in the delinquent taxpayer account records for future collection enforcement information.

4. How will each data item be verified for accuracy, timeliness, and completeness?

Each item is taken directly from the current week’s IRS Master File tapes.  Data received from FMS is certified by the Federal agency providing it to FMS.

5. Is there another source for the data?  Explain how that source is or is not used. No.

6. Generally, how will data be retrieved by the user? 

For taxpayer information and their payment information, the data can be accessed through the FMS Client server which IRS and FMS employees have access to; from SSAs systems and through normal IRS Master File systems and its stovepipe “sub-systems”.  All access requires security password login protocol.

7. Is the data retrievable by a personal identifier such as name, SSN, or other unique identifier? 

Yes, by the delinquent taxpayer’s TIN

Access to the Data

8. Who will have access to the data in the system (Users, Managers, System Administrators, Developers, Others)?

IRS: FPLP staff
FMS: Treasury Offset Division(TOP) staff
SSA: Customer Service Representatives

9. How is access to the data by a user determined and by whom? 

In compliance with the Privacy Act of 1974.

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.

Yes.  Records in the files are transmitted back and forth to the IRS Master File (and its stovepipe systems of IDRS, ACS, and ICS.)  The information is taxpayer account information along with asset and/or income information.

11. Have the IRS systems described in Item 10 received an approved Security Certification and Privacy Impact Assessment?  No.

12.  Will other agencies provide, receive, or share data in any form with this system?

Yes – IRS taxpayer information is shared with the FMS and SSA.   FMS will send new information back to IRS. 

Administrative Controls of Data

13.  What are the procedures for eliminating the data at the end of the retention period?

In compliance with the Privacy Act of 1974.  Delinquent taxpayer records are provided to FMS per IRC 6103 (n), 6103(k)(8).  FMS follows its own retention procedures for the data held at their sites per the interagency and safeguards agreements between FMS and the IRS, which includes following the appropriate PA and SORN procedures.

If the taxpayer is no longer in the levy program, the taxpayer information no longer appears in the FMS Client server software, though it is still stored in the FMS data systems.

The IRS file that is transmitted to FMS follows the same retention guidelines as the MITS Financial Systems (Unpaid Assessments formerly known as the ARDI) protocol.

14.  Will this system use technology in a new way?  If "YES" describe.  If "NO" go to Question 15.  No.

15.  Will this system be used to identify or locate individuals or groups?  If so, describe the business purpose for this capability.

Yes, this system will be used to locate assets and/or income, of delinquent taxpayer records, and/or the delinquent taxpayer’s more current address, if applicable. 

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.

17. Can use of the system allow IRS to treat taxpayers, employees, or others, differently?  Explain.  No.

18.  Does the system ensure "due process" by allowing affected parties to respond to any negative determination, prior to final action?  Yes.

19.  If the system is web-based, does it use persistent cookies or other tracking devices to identify web visitors?

Not web based.