Privacy Impact Assessment (PIA) – Scanning Promoter Documents
Promoter Scanning Project Overview
The project will scan the universe of documents that have been gathered as part of the investigation of tax shelter promotions and promoters in order to provide efficient access to the enormous volume of paper records that have been gathered so far in this investigation. Once the documents are scanned the disks will be loaded on stand alone servers and access to the servers will be controlled by a team made up of a Computer Audit Specialist, Revenue Agent, and Audit Aide. When assigned a specific case the IRS field agent, will ask for a search of all pertinent documents and the information will then be downloaded onto a disk for the Revenue Agent to use in the exam. This information could include memorandums, contracts, letters, etc. related to the taxpayer.
System of Records Number(s)
Treasury/IRS 34.037 IRS Audit Trail and Security Records System
Treasury/IRS 42.001 Examination Administrative File
Treasury/IRS 42.021 Compliance Program and Projects File
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) The records input will be original documents obtained from the taxpayer or received from a third party as part of the investigation of tax avoidance schemes.
(B) None
(C) There will be a log at each site indicating date, name of taxpayer, and name of employee conducting the research for each search request.
(D) 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)
All of the information will come from original documents obtained by Revenue Agents from taxpayers, practioners, and filers of information returns. Some of the information was provided voluntarily and some received as part of a summons or a subpoena.
There will be no direct link to any other IRS system. Pertinent data from the disks will be placed in the case files of taxpayers being investigated by the agent working each case.
3. Is each data item required for the business purpose of the system? Explain.
Yes. The information is necessary to make a determination of the correct tax liability of the investors.
4. How will each data item be verified for accuracy, timeliness, and completeness?
In scanning and supplying the data to the revenue agents working the cases, we will make the assumption that the information from the promoters and third parties is accurate, timely and complete. Questions on the accuracy, timeliness and completeness of the case will addressed by the Revenue agent and the taxpayer
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?
The two data sites will be staffed with IRS personnel. The agents in the field will request information on their investor from one of the two sites. Searches will be made by taxpayer or promoter name or other key word such as the name of the scheme.
7. Is the data retrievable by a personal identifier such as name, SSN, or other unique identifier?
Yes - by taxpayer name or promoter name.
Access to the Data
8. Who will have access to the data in the system (Users, Managers, System Administrators, Developers, Others)?
Initially, system developers will have access to the system. IRS Personnel assigned to provide data from the system and System Administrators for the two sites will have access to the servers.
Revenue agents will have access to data from the system for their individual cases.
9. How is access to the data by a user determined and by whom?
Only the personnel staffed at the two sites will have access. Revenue Agents will need to request information from the site. They will not have direct access. The agents will request information on a form approved by their manager.
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.
Not directly. The documents going into the system are part of the work done by the IRS on tax avoidance schemes by tax promoters and they will be used by agents pursuing specific cases in this area. Agents will place pertinent documents in their case files.
11. Have the IRS systems described in Item 10 received an approved Security Certification and Privacy Impact Assessment?
The process of pursuing tax avoidance promoters has received a PIA
12. Will other agencies provide, receive, or share data in any form with this system?
The information will be provided to the Department of DOJ, if needed, for trial preparation.
Administrative Controls of Data
13. What are the procedures for eliminating the data at the end of the retention period?
The records will be eliminated in accordance with the Section 1.15.2.8.1 of the IRM. We are estimating that the cases will not clear the court system until 10/31/12.
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.
The system will be used to identify information on individuals (investors) who were involved in abusive transactions.
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?
The investor taxpayers will have the same rights as any other taxpayer. The agents will use the information to work their case and a report prepared. They will have the same appeal rights.
19. If the system is web-based, does it use persistent cookies or other tracking devices to identify web visitors? No.
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