Privacy Impact Assessment – Automated Substitute For Return (A6020(b))
ASFR System Overview
The Automated Substitute For Return (A6020(b)) application facilitates case processing of BMF taxpayers who do not voluntarily file returns timely (i.e., are past the due date of the return). 6020(b) is a paragraph from the Internal Revenue Code (IRC) that gives IRS the authority to file a tax return for a business when it does not file a required return. A6020(b) produces a package containing the appropriate forms (940, 941, and 943) and Letter 1085 which is sent to the taxpayer. The system is currently being upgraded to a new environment. The A6020(b) main source of information pull will be from Automated Collection Systems (ACS) to Integrated Data Retrieval System (IDRS).
System of Records Number(s)
Treasury/IRS 24.046 CADE Business Master File
Treasury/IRS 24.047 Automated Under Reporter Case File
Treasury/IRS 26.016 Returns Compliance Programs (RCP)
Treasury/IRS 34.037 IRS Audit Trail and Security Records System
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 Data: System database contains taxpayer entity information, Power of Attorney (POA) information, delinquent tax period/s, and Last Period Satisfied (LPS) information.
B. Employee Data: A6020(b) does not contain employee data.
C. Audit Trail Information: System records, as an audit trail, employee login and any action taken by the employee.
D. Other: A6020(b) does not contain other data or files.
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 - All above information.
B. Taxpayer - Information is collected from taxpayers if the taxpayer responds or files a return. All other A6020(b) information is in the form of extracts from current IRS databases. A6020(b) only processes Business Master File (BMF) cases, no Individual Master File (IMF) cases. Information about payers of income is from IRS files. It is not received from other sources.
C. Employee - A6020(b) does not receive any information directly from employees.
D. Other Federal Agencies - A6020(b) does not receive any information from any other Federal agencies.
E. State & Local Agencies - A6020(b) does not receive any information from any State or Local agencies.
F. Other Third Party Sources - A6020(b) does not receive any information from other third party sources.
3. Is each data item required for the business purpose of the system? Explain.
Yes, The purpose of this system is to gather tax information for businesses that have not filed tax returns and create the missing returns for them. Any information that will help in the computation of an accurate taxpayer return is needed to complete this task. Entity and Power of Attorney (POA) information is needed to mail the proposal. Delinquent tax period and LPS information is required for systemic calculation of the proposed liability.
4. How will each data item be verified for accuracy, timeliness, and completeness?
A6020(b) is an application that performs computations and tax calculations enabling tax examiners to issue proposal letters to the taxpayer. The proposed liabilities are based on taxpayer account information. A6020(b) data is subjected to supervisory and management review and internal control audits in accordance with Office of Management and Budget (OMB) Circular A-123, Internal Control Reviews. Information from IRS systems is relied upon as accurate and the taxpayer is asked to provide information, updates and corrections if he or she feels it is in error.
5. Is there another source for the data? Explain how that source is or is not used.
No. There are no other sources of data.
6. Generally, how will data be retrieved by the user?
Data retrieval within the A6020(b) system is permitted through approved use of the "query" or "search" command within the application. The user can also access and research the Integrated Data Retrieval System (IDRS) to retrieve account information if needed for preparation of proposal.
7. Is the data retrievable by a personal identifier such as name, SSN, or other unique identifier?
Yes. The system is designed to enable access of information based on unique identifiers. This system retrieves data by Employee Identification Number (EIN), or Taxpayer Identification Number (TIN) as appropriate.
Access to the Data
8. Who will have access to the data in the system (Users, Managers, System Administrators, Developers, Others)?
The following IRS employees have access to A6020(b):
* A6020(b) System Administrators
* A6020(b) Operators
* A6020(b) Functional Security Coordinators
* A6020(b) National Office Support Staff
* A6020(b) Developers
All users are located within the IRS firewall.
9. How is access to the data by a user determined and by whom?
Access to A6020(b) is established through use of the IRS Form 5081. Each employee must be granted access to A6020(b) in writing. Specific permissions (Read, Write, Modify, Delete, Print) are defined and granted by the employee’s manager on the 5081 form and set (activated) by the SA or Functional Security Coordinator prior to the employee being allowed network and A6020(b) access. The IRS Form 5081 is maintained on file with the SA/Functional Security Coordinator. A6020(b) also has a login/password screen in addition to the operating system. Information on permissions is included in form 5081.
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.
A6020(b) receives data from Automated Collection System (ACS) and Taxpayer Information File (TIF) via Standardized IDRS Access (SIA). A6020(b) sends data to: Business Operating Division Notice Count Database (BOD DB), End of Day Processing (EOD) via Standardized IDRS Access (SIA), Standardized IDRS Access (SIA), and Taxpayer Information File (TIF) via Standardized IDRS Access (SIA).
Data input and output is via FTP. At the time of this assessment, no other systems have been identified that access or share data in the A6020(b).
11. Have the IRS systems described in Item 10 received an approved Security Certification and Privacy Impact Assessment? Yes.
12. Will other agencies provide, receive, or share data in any form with this system?
No. No information will be shared with other agencies.
Administrative Controls of Data
13. What are the procedures for eliminating the data at the end of the retention period?
Cases on the A6020(b) system are retained there for three (3) years after closing action has been taken. At the end of three (3) years the data is archived for future reference if necessary. All records will be archived and destroyed according to IRM 1.15.1 – 1.15.3.
14. Will this system use technology in a new way? If "YES" describe. If "NO" go to Question 15.
No. The A6020(b) system will not use 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.
A6020(b) receives cases from IDRS (Case Creation Analysis) for businesses who have not filed income tax returns. The system looks for account information with which to generate a tax return. It then allows the taxpayer a chance to provide their return voluntarily. If they fail to respond, they are assessed tax per the system generated proposal.
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. This system does not provide the capability to monitor individuals or groups.
17. Can use of the system allow IRS to treat taxpayers, employees, or others, differently? Explain.
No. Cases come to A6020(b) from IDRS based upon selection criteria in case creation. Once the case comes into A6020(b), all cases are processed the same.
18. Does the system ensure "due process" by allowing affected parties to respond to any negative determination, prior to final action?
Yes. Letters are produced and sent out to the taxpayer to inform them of any planned adjustments to their account. After the 1085 letter package is sent to the taxpayer, no action is taken for a minimum of 45 days. If the taxpayer has not responded after 45 days, the system-generated returns are sent for processing.
19. If the system is web-based, does it use persistent cookies or other tracking devices to identify web visitors?
Not applicable. The system is not web-based.
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