Privacy Impact Assessment – Continuing Professional Education Audit of Enrolled Agents
CPE System Overview:
Treasury Department Circular No. 230 contains the regulations governing the practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, and Appraisers before the Internal Revenue Service. Subpart A sets forth the rules relating to the authority to practice before the Internal Revenue Service.
There are two ways to become an enrolled agent:
1. The Director of the Office of Professional Responsibility (OPR) may grant enrollment to an applicant who demonstrates special competence in tax matters by passing a written examination administered by, or administered under the oversight of, the Director OPR, or
2. The Director may grant enrollment to an applicant who, by virtue of his or her past service and technical experience in the Internal Revenue Service, has qualified for such enrollment.
Treasury Circular 230 also contains the condition for renewal of enrollment. In order to qualify for renewal of enrollment, an individual enrolled to practice before the Internal Revenue Service must certify, on the application for renewal form prescribed by the Director OPR, that he or she has satisfied the continuing professional education requirements. Section 10.6(i) of Circular 230 requires that individuals applying for renewal must retain for a period of three years following the date of renewal of enrollment the information required with regard to qualifying continuing professional education credit hours. Such information includes, the name of the sponsoring organization; the location of the program; the title of the program and description of its content; written outlines, course syllibi, textbook, and/or electronic materials provided or required for the course; the dates attended; the credit hours claimed; the names of the instructors, discussion leaders or speakers, if appropriate; and the certificate of completion and/or signed statement of the hours of attendance obtained from the sponsor.
Circular 230 also contains the ramifications of failing to comply with the requirements of renewal. Section 10.6(k)(2) provides the Director, OPR with the authority to require any individual to provide copies of any records required to be maintained under this section of the regulation. The Director may disallow any continuing professional education hours claimed if the individual fails to comply with this requirement.
The Enrolled Practitioner Program Section (EPPS) located in the XXXXX XXXXXX is the location of the EPPS system containing the licensure and education records on Enrolled Agents. The renewal process requires that an Enrolled Agent complete Form 8554. Item 10. on Form 8554 states the following, “Declaration: I hereby certify, under penalty of perjury, that the information provided on this form is true and correct to the best of my knowledge.”
We are planning to review the CPE compliance of 300 randomly selected enrolled agents that have recently renewed their enrollment. We will ask them to provide us with the documentation to verify the hours they claimed on their Form 8554 Renewal Application. Once the information is received it will be reviewed and then placed in the Enrolled Agents personal file.
System of Records Number(s):
IRS 37.009 Enrolled Agents and Resigned Enrolled Agents
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)
D. Enrolled Agents. We are asking for CPE course completion certificates.
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. List of agents will come from the Enrolled Practitioner Program System (EPPS) in XXXX.
F. Enrolled Agents. We are asking for CPE course completion certificates from the Enrolled Agents.
3. Is each data item required for the business purpose of the system? Explain.
We are only requiring one item, the CPE course completion certificate and that is required for the business purpose of the system.
4. How will each data item be verified for accuracy, timeliness, and completeness?
We will assume that the CPE course completion certificate is accurate, timely, and complete.
5. Is there another source for the data? Explain how that source is or is not used.
No, the Enrolled Agent is the only source for the CPE course certificate.
6. Generally, how will data be retrieved by the user?
The user will review the CPE course certificate supplied by the Enrolled Agent and place the forms in the EA’s file.
7. Is the data retrievable by a personal identifier such as name, SSN, or other unique identifier?
The data is associated with the Enrolled Agent (his or her name) who supplied it to the Service.
Access to the Data
8. Who will have access to the data in the system (Users, Managers, System Administrators, Developers, Others)?
OPR Users and Managers working on the survey will have access to the data in the system. If the EA does not or cannot provide the completed certificates, OPR attorneys will review to see if EA violated Circular 230..
9. How is access to the data by a user determined and by whom?
The Manager will determine which employee will have access to the data.
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.
11. Have the IRS systems described in Item 10 received an approved Security Certification and Privacy Impact Assessment? n/a
12. Will other agencies provide, receive, or share data in any form with this system? No.
Administrative Controls of Data
13. What are the procedures for eliminating the data at the end of the retention period?
After review, the information will be placed in the EA’s file in Detroit for the remainder of the three year enrollment cycle.
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. No.
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.
The system will provide the capability to monitor a group of randomly selected Enrolled Agents to determine if they have complied with the CPE renewal requirement provided for in Circular 230, The data elements will be stored in a secure cabinet during the retention period, and will be available for review only by Managers or designated Users.
17. Can use of the system allow IRS to treat taxpayers, employees, or others, differently? Explain.
The system will allow the Service to determine if randomly selected Enrolled Agents complied with the CPE requirements of Circular 230.
18. Does the system ensure "due process" by allowing affected parties to respond to any negative determination, prior to final action?
Yes, the Enrolled Agents will have the opportunity to respond to any negative determination, prior to final action.
19. If the system is web-based, does it use persistent cookies or other tracking devices to identify web visitors?
The system is not web-based.
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