IRS Office Of Safeguards. Treasury Offset Program for Unemployment Insurance Compensation Debts

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1 1 IRS Office Of Safeguards Treasury Offset Program for Unemployment Insurance Compensation Debts

2 2 Safeguard Procedures Report To be eligible to participate in the Treasury Offset Program for Unemployment Compensation debts from Financial Management Service, agencies must have a Safeguard Procedures Report (SPR) approved by the IRS Office of Safeguards. Submission Guidance Agencies shall submit their SPR on the template developed by the IRS Office of Safeguards. The most current template may be obtained from keyword Safeguards or requested by ing SafeguardReports@irs.gov. The SPR must be accompanied by a letter on the agency s letterhead signed by the head of the agency or delegate, and dated. The SPR must be sent encrypted via IRS approved encryption techniques. NOTE: State Work force Agencies (SWA) with an approved SPR and receiving FTI pursuant to IRC 6103(d), should complete the Refund Offset Participant SPR Addendum.

3 3 Statutory Requirements State Workforce Agencies may receive FTI under IRC 6103(l)(10) and 6103(d). FTI is provided to the Benefits Division of a SWA under IRC 6103(l)(10) for the purpose of collecting unemployment compensation debts due to fraud, failure to report earnings or delinquent contributions. FTI received pursuant to IRC 6103(l)(10) cannot be re-disclosed to a contractor or to Tax Division. FTI is provided to the Tax Division of a SWA under IRC 6103(d) for the purpose of tax administration. FTI received pursuant to IRC 6103(d) cannot be re-disclosed to Benefits Division.

4 4 IRS Publication 1075 This publication provides guidance in ensuring that polices, practices, controls and safeguards employed by recipient agencies adequately protect the confidentiality of the information they receive from the IRS. A mutual interest exist in our responsibility to ensure that Federal Tax Information (FTI) is disclosed only to authorized persons and used only as authorized by statute or regulation. The IRS is confident of your diligence in this area and believes that Publication 1075 will be a helpful guide. Conforming to these guidelines meets the safeguarding requirements of IRC Section 6103(p)(4) and makes our joint efforts beneficial. Requirements throughout Publication 1075 apply to all organizational segments of an agency receiving FTI, no matter the amount or the media in which it is recorded. It is the agency s responsibility to ensure all functions within their agency, including consolidated data centers and contractors (where allowed by federal statute), with access to FTI understand and implement the Publication 1075 requirements. The IRS Office of Safeguards is responsible for all interpretations of safeguarding requirements. Publication 1075 can be accessed through the Internet at

5 5 Safeguard Reviews A safeguard review is an on-site evaluation of the use of federal tax information and the measures employed by the receiving agency to protect the data. This includes federal tax information received from the IRS, FMS, or Social Security Administration. Safeguard reviews are conducted to determine the adequacy of an agency s safeguard program. Reviews are conducted by the Office of Safeguards and cover the safeguarding requirements of IRC Section 6103(p)(4). Record Keeping Secure Storage Restricting Access Other Safeguards (covering employee awareness and internal inspections) Reporting Requirements Disposal Computer Security Need and Use

6 6 Disclosures for Purpose of IRC IRC 6103(l)(10) allows the disclosure, upon written request, of certain information for the purpose of seeking reduction under the provision of IRC The refund offset program for IRC 6402(c) (for Child Support Enforcement), 6402(d) (for Federal agencies), and 6402(e) (State income tax obligations) is operated by the Financial Management Service (FMS). The IRS disclosures to the FMS to administer the refund offset program are governed by IRC 6103(h)(1). See IRM , Disclosure to Federal Officers and Employees for Tax Administration Purposes. Note: State and Federal Agencies receiving tax refund offset information cannot redisclose this same information to a contractor, except limited disclosures to contractors of Child Support Enforcement Agencies as permitted by IRC 6103(l)(6)(B).

7 7 Assistance from IRS Office of Safeguards Visit the IRS website at (key word: Safeguards Program) Send questions and requests for assistance to the IRS Safeguards box at Barbara Graham, UC TOP Coordinator at or Questions?