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Issue Based Management

 

Privacy Impact Assessment - Issue Based Management Information System  Shared Data Set - IBMIS-SDS

IBMIS-SDS System Overview

The Issue Based Management Information System (IBMIS) Shared Data Set (SDS) project is a superset of the IMS data set with value added research data, which will link different publicly available sources of tax, financial, economic, and other relevant information for each LMSB corporate taxpayer over time.  The value-added data will reflect LMSB’s current thinking on relevant issues and will provide a feedback loop into the business process.  It will serve as the foundation for developing indicators of compliance risk and for developing the analytic tools to support selection, classification, and resource allocation decisions. 

IBMIS SDS is a database of corporate taxpayer interrelationship information linked to economic data from external sources plus internal master file return, assessment and adjustment information.  SDS will provide users the capability to perform graphical research analysis on saved data sets while in a disconnected mode.

The IBMIS SDS project was initiated to satisfy the following business need:

> Create a repository of selected internal and external data that will contain:

* A taxpayer registry of current and historical corporate interrelationships.
* External corporate and industry economic data, and
* Internal data on returns, assessments and adjustments from the
o Business Master File via the Compliance Research Information System Business Filer Model (CRIS BFM)
o LMSB Datamart
o Business Master File Statistics of Income Extracts (BMF SOI), and the
o Audit Information Management System

System of Record Number(s) 

Treasury/IRS 22.026 Form 1042-S Index by Name of Treasury/Recipient
Treasury/IRS 22.027 Foreign Information System
Treasury/IRS 24.013 Combined Account Number File
Treasury/IRS 24.046 CADE Individual Master File
Treasury/IRS 24.046 CADE Business Master File
Treasury/IRS 34.037 IRS Audit Trail and Security Records System
Treasury/IRS 36.003 General Payroll and Personnel Records (covers CADS)
Treasury/IRS 42.001 Examination Administrative Files (covers EOADS)
Treasury/IRS 42.008 Audit Information Management System (AIMS)
Treasury/IRS 42.017 International Enforcement Program Files
Treasury/IRS 42.021 Compliance Programs and Project files
Treasury/IRS 42.027 Data on Taxpayers Filing on Foreign Holdings
Treasury/IRS 42.030 Discriminant Function File (DIF)

Data in the System

1. Describe the information (data elements and fields) available in the system in the following categories:

The objective of IBMIS SDS is to provide access to data in various internal databases and combine that data with financial data from a commercial vendor.

A.  Taxpayer.  SDS contains corporate taxpayer data that consist of one or more tax returns for the same taxpaying entity. 

Types of data available for use by IBMIS:  TIN, Business Name, tax return line items and filing period; address; relationship; published financial statements filed with the Security Exchange Commission; percent of stock ownership by corporate officer. 

The tax forms data being considered for use in SDS are: 
851 Affiliation Schedule,
941 Employers Quarterly Employment Tax Report,
1042 Withholding on US Source Income,
1065 Partnership Return,
1065B Partners Share K-1,
1120 Corporate family of returns,
5471 Information Return of Persons with Foreign Corporation,
5472 Foreign Corporation in US or percentage of a US corporation owned by a foreign corporation,
modernized e-filed data and traditional e-filed data.

Types of Taxpayer SBU data available for use by IBMIS will include any or all tax return fields transcribed or electronically transferred from a posted tax return.  Also, tax account data may consist of entity information and certain parts of the business master file account record.

B.  Employee.  Shared Data Set utilizes the IRS employee’s LAN logon information for validation purposes. 

C. Audit Trail Information.  The audit function will collect the data on everything viewed or accessed while on the system.

D.  Other.  XXXXXXXXXXXXXXXXXXXXXXX

2. Describe/identify which data elements are obtained from files, databases, individuals, or any other sources.

A.  IRS:  Returns and forms as filed and/or adjusted residing in IRS databases.

IRS Data in the LMSB Datamart:
* 1120 Family (F1120, S, F, FSC, PC, POL, REIT, RIC, L, ND) and 1065 monthly refresh)
* TC/590 File (851)
* 5471 – PSC
* 5472 – PSC
* SOI – 1118
* SOI – 5471, 5472
* K-1 (PY2000, 2001, 2002)
* AIMS (closed case) (PY 2001, 2002, 2003, 1st qtr 2004)
* SOI – 1120
* Business Filer Model (BFM) Business Return Transaction File
* Office of Tax Shelter Analysis database (small spreadsheet)
 
B.  Taxpayer: original filed returns required documents and scheduled.

C.  Employee:  None.

D.  Other Federal Agencies:
 
* Securities and Exchange Commission EDGAR filings.  This information is public, but we will procure an off-the-shelf application for our access. 

E.  State and Local Agencies.  None.

F.  Other third party sources.  North American Industry Classification System - NAICS table  of industry codes publicly available from Census Bureau, which will be used to classify types of returns.


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

Yes.  The IBMIS (SDS) system will provide LMSB personnel with systems that capture and provide issue information to examination personnel, managers, and research analysts, enabling them to perform their assigned duties.

The issue-based management strategy will also support IRS strategic goals of reducing taxpayer burden and increasing the productivity of examination personnel as follows: 
Taxpayers will not be required to retrieve and provide paper SEC filings and documents, thereby reducing their compliance burden. 
Agents will not have to manually input data from the paper documents as they do today, thereby reducing the time it takes to perform their duties.

IBMIS (SDS) consists of a virtual database of taxpayer tax return, financial and interrelationship data linked to assessment and adjustment information.

IBMIS (SDS) will support workload and issue management.  It will also support research on emerging global and tax shelter issues and predictive models for unreported income, compliance risks, and the effectiveness of pre-filing initiatives.

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

IBMIS  (SDS) relies on the integrity of the underlying databases that are integrated into the virtual database.   Tax return data is obtained from the entities under penalties of perjury and therefore must be deemed accurate, complete, and current.  EDGAR data is SEC information made available to the public based on the filings of corporate entities and is deemed reliable. 

5. Is there another source for the data?  Explain how that source is or is not used.

There are no other sources for the data.

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

The data can be retrieved by TIN, business taxpayer address, NAICS code, stock ticker symbol, or a transactional relationship to an entity under examination, depending upon authorized user access permissions.

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

Yes.  Taxpayer Identification Number is used for retrieval of data in addition to industry type code, geographic location, stock ticker symbol, or SIC code

Access to the Data

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

Only employees having the need to know as a result of their assigned duties will have access to the data in the system. As noted above,  only Team Managers, Revenue Agents, Territory Managers, Technical Advisors, etc., will have access to data in the system on a Coordinated Industry Case or Industry Case in LMSB.  In addition, IRS Researchers, Reviewers, and IRS Executives may have access as part of their official functions.

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

Only LMSB employees who are authorized on the system will have access to the data.  Role based access controls limit what users can retrieve and see TINs authorized by their manager.  The access control is provided by a commercial off the shelf software product.

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.  Issue Management System and Issue Based Management Information System Reporting will receive data feeds from SDS.   All systems noted in Question 1 provide data to SDS.

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 information is shared outside IRS.  SEC EDGAR filing information is received from SEC but no information is returned to them.

Administrative Controls of Data

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

The data is accessed through a Web browser and provided to the user.  No data is resident in the system, and the data collected and transferred is transitory in nature and not retained.  However, any data captured and downloaded is disposed of in accordance with IRM 1(15)59.22-9, and Records Control Schedule 202.

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

Yes.  Instead of creating a database, the system will access multiple existing data sources and reports from a virtual database as if they were a single database.

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

No, only business information is in the system.

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 purpose of the system is to monitor LMSB business operations and apply resources only where necessary and beneficial to operations.

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?

This system has no affect on the due process rights of individuals.

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

The system is Intranet Web based but does not use “cookies” or other tracking devices.  Items viewed are logged in the security files.  Internal IP addresses are not viewable outside the IRS.

 


Page Last Reviewed or Updated: November 19, 2004