81 FR 44924 - Privacy Act of 1974; Department of the Treasury, Internal Revenue Service Treasury/IRS 10.008, Certified Professional Employer Organizations System of Records
DEPARTMENT OF THE TREASURY Federal Register Volume 81, Issue 132 (July 11, 2016)
Federal Register Volume 81, Issue 132 (July 11, 2016)
| Page Range | 44924-44926 | |
| FR Document | 2016-16128 |
[Federal Register Volume 81, Number 132 (Monday, July 11, 2016)] [Notices] [Pages 44924-44926] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-16128] [[Page 44924]] ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Privacy Act of 1974; Department of the Treasury, Internal Revenue Service Treasury/IRS 10.008, Certified Professional Employer Organizations System of Records AGENCY: Treasury, Internal Revenue Service (IRS). ACTION: Notice of Privacy Act system of records. ----------------------------------------------------------------------- SUMMARY: In accordance with the Privacy Act of 1974, as amended, 5 U.S.C. 552a the Department of the Treasury (``Treasury'' or the ``Department'') proposes to establish a new Treasury system of records titled, ``Department of the Treasury, Internal Revenue Service Treasury/IRS 10.008, Certified Professional Employer Organizations System of Records.'' DATES: Submit comments on or before August 10, 2016. This new system will be effective August 10, 2016. ADDRESSES: Comments should be sent to Office of Governmental Liaison, Disclosure and Safeguards, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, DC 20224, Attention: New Privacy Act Systems of Records. Comments will be available for inspection and copying at the above address by appointment only. Write to the above address or call (202) 317-4505 (not a toll free number) to schedule an appointment for inspection and/or copying. All comments received, including attachments and other supporting disclosure will be posted without change at www.regulations.gov. You should submit only information that you wish to make publicly available. FOR FURTHER INFORMATION CONTACT: For general questions please contact: Nicole L. Young, Supervisory Financial Administrator and Program Specialist, SBSE, (240) 613-6407 (not a toll-free number). For privacy issues please contact: David Silverman, Management and Program Analyst, Privacy, Governmental Liaison and Disclosure, at 1111 Constitution Ave NW., Washington, DC 20224, (202) 317-6452 (not a toll free number). SUPPLEMENTARY INFORMATION: In accordance with the Privacy Act of 1974, 5 U.S.C. 552a, the Department of the Treasury (Treasury) Internal Revenue Service (IRS) proposes to establish a new Treasury system of records titled, ``Department of the Treasury, Internal Revenue Service Treasury/IRS 10.008, Certified Professional Employer Organizations System of Records.'' The proposed system will allow the IRS to implement requirements pursuant to Title II (Section 206) of the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), Public Law 113-295, to administer a program to certify professional employer organizations by conducting suitability checks of key individuals involved to protect the public. The ABLE Act provides certain tax benefits for certified professional employer organizations giving them statutory authority to collect and remit federal employment taxes under the certified professional employer organization's (CPEO's) employer identification number for wages the CPEO pays to individuals covered by a service contract. Individuals will have the opportunity to seek administrative review of issues related to the denial or revocation of certification. Professional employer organizations, including their owner(s), responsible individual(s), and authorized representative(s), will be subject to suitability checks, which may include background, fingerprint, and tax compliance checks. These organizations must also secure a bond and provide independent financial reviews on a periodic basis. Additionally, any changes that materially affect the information previously provided in the certification process must be provided to the IRS in a timely manner. This proposed system will contain information about individuals pertaining to the administration of certifying professional employer organizations and ensuring their compliance with 26 U.S.C. 3511 and 7705. The IRS will collect information about responsible individuals, including background and tax compliance checks to protect the public and ensure the integrity of the certification process. Disclosure of information contained in these systems of records to unauthorized persons could result in a violation of privacy, have adverse financial consequences to individuals, and may bring personal and/or familial embarrassment to an individual. The IRS has established physical, system, and procedural safeguards to minimize the risk of unauthorized access. Only persons authorized by law will have access to these records. Physical safeguards will be provided in accordance with TD P 71-10, Department of the Treasury Security Manual, and access controls are not less than those published in IRM 10.2, Physical Security Program. Access will be permitted on a need to know basis and based on the routine uses in the system. The IRS will distribute security and privacy guidelines and training to its personnel and conduct random checks on the adequacy of security and privacy features. Below is the description of the Treasury/IRS 10.008, Certified Professional Employer Organizations System of Records. In accordance with 5 U.S.C. 552a(r), Treasury has provided a report of this system of records to the Office of Management and Budget and to Congress. System of Records: IRS 10.008 System name: Department of the Treasury, Treasury/IRS 10.008, Certified Professional Employer Organizations System of Records. System location: Records are maintained at the IRS Office of the Commissioner, Small Business/Self Employed Division (SB/SE), National Office, Area Offices, Local Offices, Service Campuses, and Computing Centers. (See IRS Appendix A in the Federal Register Volume 80, Number 173, Tuesday, September 8, 2015 for addresses of IRS offices at pages 54063-54143.) Categories of individuals covered by the system: These records include information about: (1) Responsible individuals and other individuals who are connected or related to an organization that applies for professional employer organization certification and records of approval, denial, suspension, or revocation of certification; (2) individual contractors involved with the Certified Professional Employer Organizations (CPEO) program; (3) individuals who communicate with the IRS regarding the certified professional employer organization program or about any specific professional employer organization, or about any responsible individual or other individual connected or related to any applicant organization (pursuant to definitions in 301.7705-1T); and (4) third party witnesses who may be interviewed as part of the suitability check. Categories of records in the system: These records include information about responsible individuals and other individuals connected or related to organizations that apply for Professional Employer Organization (PEO) certification, including information related to approval, denial, suspension, or revocation of certification, records relating to applications for certification or annual verification; records [[Page 44925]] pertaining to IRS investigation and evaluation of eligibility for certification; records related to suitability checks, including but not limited to, background, fingerprint, and tax compliance checks (which may include credit reports, reports of misconduct, law enforcement records and other information from investigations into suitability for certification); and records pertaining to received communications. Records will contain individuals' names, Social Security numbers, employer identification numbers, addresses, phone numbers, alternate names, points of contact, experience, and personal attestations. Authority for maintenance of the system: 26 U.S.C. 3511 and 7705; 5 U.S.C. 301. Purpose(s): The purpose of this system is to administer records pertaining to the certification of professional employer organizations pursuant to Title II (Section 206) of the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), Public Law 113-295. This system of records includes administrative, investigative, and tax records. Routine uses of records maintained in the system, including categories of users and the purposes of such uses: Disclosure of return and return information may be made only as provided by 26 U.S.C. 6103. All other records may be disclosed as described below if the IRS deems that the purpose of the disclosure is compatible with the purpose for which the IRS collected the records, and no privilege is asserted: (1) To the Department of Justice (DOJ) when seeking legal advice, or for use in any proceeding, or in preparation for any proceeding, when: (a) The IRS or any component thereof; (b) any IRS employee in his or her official capacity; (c) any IRS employee in his or her individual capacity if the IRS or the DOJ has agreed to provide representation for the employee; or (d) the United States is a party to, has an interest in, or is likely to be affected by the proceeding, and the IRS determines that the records are relevant and useful. (2) In a proceeding (including discovery) before a court, administrative tribunal, or other adjudicative body when: (a) The IRS or any component thereof; (b) any IRS employee in his or her official capacity; (c) any IRS employee in his or her personal capacity if the IRS or DOJ has agreed to provide representation for the employee; or (d) the United States is a party to, has an interest in, or is likely to be affected by, the proceeding and the IRS or DOJ determines that the information is relevant and necessary to the proceeding. Information may be disclosed to the adjudicative body to resolve issues of relevancy, necessity, or privilege pertaining to the information. (3) To an appropriate federal, state, local, tribal, or foreign agency, or other public authority, responsible for implementing or enforcing, or for investigating or prosecuting the violation of, a statute, rule, regulation, order, or license, when a record on its face, or in conjunction with other records, indicates a potential violation of law or regulation and the information disclosed is relevant to any regulatory, enforcement, investigative, or prosecutorial responsibility of the receiving authority. (4) to third parties during the course of an investigation, which may include a suitability check, to the extent necessary to obtain information pertinent to the investigation. (5) To the news media as described in the IRS Policy Statement 11- 94 (formerly P-1-183), News Coverage to Advance Deterrent Value of Enforcement Activities Encouraged, IRM 1.2.19.1.9. (6) To a contractor, including an expert witness or a consultant, hired by the IRS, to the extent necessary for the performance of a contract. (7) To the public the names and addresses of responsible individuals and other individuals connected or related to organizations that have been certified, suspended, or revoked. The Service may also disclose the effective date of certification or revocation, the type of discipline, and the effective date and duration of suspension. (8) To appropriate agencies, entities, and persons when: (a) The IRS suspects or has confirmed that the security or confidentiality of information in the system of records has been compromised; (b) the IRS has determined that as a result of the suspected or confirmed compromise there is a risk of harm to economic or property interests, identity theft or fraud, or harm to the security or integrity of this system or other systems or programs (whether maintained by the IRS or another agency or entity) that rely upon the compromised information; and (c) the disclosure made to such agencies, entities, and persons is reasonably necessary to assist in connection with IRS efforts to respond to the suspected or confirmed compromise and prevent, minimize, or remedy such harm. Policies and practices for storing, retrieving, accessing, retaining, and disposing of records in the system: Storage: Records in this system are stored in a secure electronic system or on paper in secure facilities in a locked drawer behind a locked door. Retrievability: Records may be retrieved by individual or organization name, Taxpayer Identification Number (Social Security Number, Employer Identification Number, or other number assigned by the IRS), application number (number assigned upon submission of an application), or certification approval number. Records pertaining to contractors may be retrieved by contractor name or Taxpayer Identification Number, or by contract number. Records pertaining to communications with individuals regarding the certified professional employer organization program or a specific organization may be retrieved by the name of the individual, the name of a professional employer organization, or name of a responsible individual or other individual connected or related to that organization, or other identifying information of a professional employer organization identified in the communication, such as Taxpayer Identification Number and certification number. Records may also be retrieved by IRS employee assigned to the case, project, or determination. Safeguards: Records in this system are safeguarded in accordance with applicable rules and policies, including all applicable Treasury automated systems security and access policies. Strict controls have been imposed to minimize the risk of compromising the information that is being stored. Access to the computer system containing the records in this system is limited to those individuals who have a need to know the information for the performance of their official duties and who have appropriate clearances. Retention and disposal: Records are generally maintained for six years in accordance with IRM 1.15, Records and Information Management, Document 12829, General Records Schedules, and Document 12990, Records Control Schedules. There may be exceptions if records need to be retained longer at the request of a court if the records are pertinent to litigation or at the request of Congress for congressional oversight. [[Page 44926]] System Manager and address: Commissioner, SB/SE., 1111 Constitution Avenue NW., Washington, DC 20224. Notification procedure: Individuals seeking to determine if this system of records contains a record pertaining to themselves may inquire in accordance with instructions appearing at 31 CFR part 1, subpart C, appendix B. Inquiries should be addressed as in ``Record Access Procedures'' below. Individuals must first verify their identity by providing their full name, current address and date and place of birth. Individuals must sign their request, and their signature must either be notarized or submitted under 28 U.S.C. 1746, a law that permits statements to be made under penalty of perjury as a substitute for notarization. In addition individuals should provide the following:An explanation of why he or she believes the IRS would have information about them; Specify when he or she believes the records would have been created; Provide any other information that will help the IRS or FOIA staff determine which IRS office may have responsive records; and If the request is seeking records pertaining to another living individual, he or she must include a statement from that individual certifying his/her agreement for the requestor to access his/her records. Without this bulleted information, the IRS may not be able to conduct an effective search, and the request may be denied due to lack of specificity or lack of compliance with applicable regulations. Record access procedures: Individuals seeking access to any record contained in this system of records, or seeking to contest its content, may inquire in accordance with instructions appearing at 31 CFR part 1, subpart C, appendix B. Inquiries should be addressed to Internal Revenue Service Centralized Processing Unit--Stop 93A, Post Office Box 621506, Atlanta, GA 30362. Contesting record procedures: 26 U.S.C. 7852(e) prohibits Privacy Act amendment of tax records. See ``Record Access Procedures'' above for records that are not tax records. Record source categories: Records are obtained from tax records of applicant organizations, responsible individuals, and other individuals connected or related to the applicant organization; public information sources; third parties including individuals, city and state governments, other federal agencies, applicant organization clients, licensing and other professional organizations. Employee information is obtained from IRS personnel records. Exemptions claimed for the system: None. Dated: June 16, 2016. Helen Goff Foster, Deputy Assistant Secretary for Privacy, Transparency, and Records. [FR Doc. 2016-16128 Filed 7-8-16; 8:45 am] BILLING CODE 4810-33-P
![44926 Federal Register / Vol. 81, No. 132 / Monday, July 11, 2016 / Notices
SYSTEM MANAGER AND ADDRESS: Service Centralized Processing Unit— Parkersburg, West Virginia, 26106–1328.
Commissioner, SB/SE., 1111 Stop 93A, Post Office Box 621506, You can download this notice at the
Constitution Avenue NW., Washington, Atlanta, GA 30362. following Internet addresses: http://
DC 20224. www.treasury.gov or http://
CONTESTING RECORD PROCEDURES:
www.federalregister.gov.
NOTIFICATION PROCEDURE: 26 U.S.C. 7852(e) prohibits Privacy
Individuals seeking to determine if Act amendment of tax records. See DATES:Effective July 1, 2016 to
this system of records contains a record ‘‘Record Access Procedures’’ above for September 30, 2016.
pertaining to themselves may inquire in records that are not tax records.
FOR FURTHER INFORMATION CONTACT:
accordance with instructions appearing RECORD SOURCE CATEGORIES: Adam Charlton, Manager, Federal
at 31 CFR part 1, subpart C, appendix Records are obtained from tax records Borrowings Branch, Office of Public
B. Inquiries should be addressed as in of applicant organizations, responsible Debt Accounting, Bureau of the Fiscal
‘‘Record Access Procedures’’ below. individuals, and other individuals Service, Parkersburg, West Virginia
Individuals must first verify their 26106–1328, (304) 480–5248; Sam Doak,
connected or related to the applicant
identity by providing their full name, Reporting Team Leader, Federal
organization; public information
current address and date and place of Borrowings Branch, Division of
sources; third parties including
birth. Individuals must sign their Accounting Operations, Office of Public
individuals, city and state governments,
request, and their signature must either Debt Accounting, Bureau of the Fiscal
other federal agencies, applicant
be notarized or submitted under 28 Service, Parkersburg, West Virginia
organization clients, licensing and other
U.S.C. 1746, a law that permits 26106–1328, (304) 480–5117.
professional organizations. Employee
statements to be made under penalty of
information is obtained from IRS
perjury as a substitute for notarization. SUPPLEMENTARY INFORMATION: Federal
personnel records.
In addition individuals should provide law requires that interest payments on
the following: EXEMPTIONS CLAIMED FOR THE SYSTEM: cash deposited to secure immigration
• An explanation of why he or she None. bonds shall be ‘‘at a rate determined by
believes the IRS would have the Secretary of the Treasury, except
Dated: June 16, 2016.
information about them; that in no case shall the interest rate
Helen Goff Foster,
• Specify when he or she believes the exceed 3 per centum per annum.’’ 8
records would have been created; Deputy Assistant Secretary for Privacy, U.S.C. 1363(a). Related Federal
Transparency, and Records.
• Provide any other information that regulations state that ‘‘Interest on cash
[FR Doc. 2016–16128 Filed 7–8–16; 8:45 am]
will help the IRS or FOIA staff deposited to secure immigration bonds
determine which IRS office may have BILLING CODE 4810–33–P will be at the rate as determined by the
responsive records; and Secretary of the Treasury, but in no case
• If the request is seeking records will exceed 3 per centum per annum or
pertaining to another living individual, DEPARTMENT OF THE TREASURY be less than zero.’’ 8 CFR 293.2.
he or she must include a statement from Departmental Offices; Interest Rate Treasury has determined that interest on
that individual certifying his/her Paid on Cash Deposited To Secure the bonds will vary quarterly and will
agreement for the requestor to access U.S. Immigration and Customs accrue during each calendar quarter at
his/her records. Enforcement Immigration Bonds a rate equal to the lesser of the average
Without this bulleted information, the of the bond equivalent rates on 91-day
IRS may not be able to conduct an AGENCY: Departmental Offices, Treasury. Treasury bills auctioned during the
effective search, and the request may be ACTION: Notice. preceding calendar quarter, or 3 per
denied due to lack of specificity or lack centum per annum, but in no case less
of compliance with applicable SUMMARY: For the period beginning July than zero. [FR Doc. 2015–18545] In
regulations. 1, 2016, and ending on September 30, addition to this Notice, Treasury posts
2016, the U.S. Immigration and Customs the current quarterly rate in Table 2b—
RECORD ACCESS PROCEDURES: Enforcement Immigration Bond interest Interest Rates for Specific Legislation on
Individuals seeking access to any rate is 0.27 per centum per annum. the TreasuryDirect Web site.
record contained in this system of ADDRESSES: Comments or inquiries may
records, or seeking to contest its be mailed to Sam Doak, Reporting Team Gary Grippo,
content, may inquire in accordance with Leader, Federal Borrowings Branch, Deputy Assistant Secretary for Public
instructions appearing at 31 CFR part 1, Division of Accounting Operations, Finance.
subpart C, appendix B. Inquiries should Office of Public Debt Accounting, [FR Doc. 2016–16342 Filed 7–8–16; 8:45 am]
be addressed to Internal Revenue Bureau of the Fiscal Service, BILLING CODE 4810–25–P
sradovich on DSK3GDR082PROD with NOTICES
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Document Created: 2016-07-09 00:21:19
Document Modified: 2016-07-09 00:21:19
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice of Privacy Act system of records. | |
| Dates | Submit comments on or before August 10, 2016. This new system will be effective August 10, 2016. | |
| Contact | For general questions please contact: Nicole L. Young, Supervisory Financial Administrator and Program Specialist, SBSE, (240) 613-6407 (not a toll-free number). For privacy issues please contact: David Silverman, Management and Program Analyst, Privacy, Governmental Liaison and Disclosure, at 1111 Constitution Ave NW., Washington, DC 20224, (202) 317-6452 (not a toll free number). | |
| FR Citation | 81 FR 44924 |
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