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PRIVACY: Working to Build Public Trust

"The makers of our Constitution...sought to protect Americans in their beliefs, their thoughts, their emotions and their sensations.
They conferred as against the Government, the right to be let alone the most comprehensive of rights of man and the right most
valued by civilized men."
—U.S. Supreme Court Justice Louis D. Brandeis dissenting in Olmstead v. United States (1928)

What is Privacy?

There are two types of privacy-physical privacy and informational privacy. People are traditionally concerned with physical privacy, as protected by the Fourth Amendment's prohibition against illegal search and seizure. However, as the Information Age has given rise to global, electronic access to information, the American people have become increasingly more concerned about their personal information.

This privacy is generally defined as the right of individuals to control the collection and use of personal information about themselves. Organizations that collect large volumes of information must focus on protecting people's privacy. The Internal Revenue Service (IRS) is committed to protecting the privacy rights of taxpayers.

How Does the IRS Protect the Privacy of the Taxpayer?

The IRS protects taxpayer privacy by collecting only that information necessary to fulfill the Service's mission of tax administration. The IRS also ensures that any information that is collected is safeguarded and used in accordance with the law. The IRS has taken its privacy responsibility beyond legal requirements to enhance an individual's right to privacy. In this role, the IRS uses several tools:

Policy Statement on Taxpayer Privacy Rights—a bill of privacy rights for the taxpayer-describes what taxpayers can expect from the IRS regarding their privacy. They can expect:

• That the IRS will take very seriously its social responsibility to taxpayers to limit and control information usage as well as to protect public and official access
• That the IRS will keep their personal and financial information confidential
• That the IRS will not collect unnecessary personal information.

Declaration of Privacy Principles—outlines specific IRS employee responsibilities for protecting privacy. These principles help build confidence between a taxpayer, who provides information, and the IRS, which maintains it. In general, these principles require all IRS employees to respect the taxpayer's right to feel secure that his personal information is protected. Other principles include:

• Protecting taxpayer privacy is a public trust.
• No information will be collected or used that is not necessary and relevant for tax administration and other legally mandated or authorized purposes.
• Information will be collected, to the greatest extent practicable, directly from the individual to whom it relates.
  Information collected from third parties will be verified to the greatest extent practicable with the subject before action is taken against him.
• The privacy rights of all individuals will be respected by the IRS and every taxpayer will be treated honestly, fairly, and respectfully.

The IRS uses the Privacy Impact Assessment (PIA) to evaluate potential privacy issues raised during the design and implementation of information programs. The IRS completes a PIA for new information systems, systems under development, or systems undergoing major modifications. For example, the PIA identifies information in the program, who has access to that information, and the administrative controls that protect information to make certain that only information that is necessary and relevant to accomplish an IRS mission is included. The PIA is increasingly important as IRS modernizes its tax system, organization, and computer programs.

The Federal Chief Information Officers Council has recognized the IRS with a "best practice" award for its PIA process of evaluating privacy risks. The Council recommended the PIA be used by all federal agencies, noting the "model is particularly relevant since it is designed to evaluate privacy needs on information systems that contain personal and financial data on virtually every taxpaying resident with extremely rigorous privacy requirements."

How Does the IRS Protect Privacy Over the World Wide Web?

The IRS uses privacy notices to alert all visitors to its Web site
(http://www.irs.gov) about the type of information that will be collected as a result of their visit. The IRS Internet Policy describes how IRS collects, uses, shares, and stores information over the Internet:

• The IRS will not collect identifiable personal information about you just because you visit its site.
• The IRS does not use cookies-files placed on a visitor's hard drive that allow the Web site to monitor the individual's use of the site.
• The IRS uses its Web pages to provide information pertaining to the Internal Revenue Service, its policies, educational materials, tax forms that can be downloaded, and programs as a public service.
• Any information the IRS collects and maintains in the course of responding to you will be handled in accordance with the access and privacy protection requirements of the Privacy Act, the Freedom of Information Act, and the Internal Revenue Code.
• The IRS will not share information you give it with anyone unless required by law. The IRS also will not sell your information.
• The IRS will not e-mail personal information such as account-related or refund information as part of its response to you. The confidentiality of Internet transmissions is not guaranteed.

The IRS also posts departure notices alerting visitors to its Web site when they are about to leave the IRS site. This notice informs the visitor that other non-government or commercial Web sites may have different privacy policies.

How Does the IRS Protect Information From People Who File Returns Electronically?

Whether taxpayers choose to file a return electronically (commonly referred to as e-filing) or on paper, IRS protects taxpayer privacy on all its tax processing systems. Many taxpayers use the services of IRS industry partners, such as paid tax preparers, electronic return originators, and transmitters to prepare or process their tax returns. Rest assured that the IRS is fully committed to protecting your information on our tax processing systems, whether you choose to e-file or file on paper.

Office of the Privacy-Advocate-"Working to Build Public Trust"

What Does the Office of the Privacy Advocate Do?

The Office of the Privacy Advocate promotes and supports privacy programs and awareness throughout the IRS.Specific Privacy Advocate roles and responsibilities are to:

• Establish IRS privacy policy - Statement on Taxpayer Privacy Rights, Declaration of Privacy Principles and Privacy Policies
  Impact Assessments
• Create and support an awareness of privacy policies throughout the IRS
• Promote the privacy rights of all taxpayers
• Ensure employees are trained on privacy issues and policies
• Examine privacy initiatives proposed by Congress other federal agencies private organizations and the public
• Formulate IRS positions and responses regarding privacy related initiatives
• Identify the need for and response to new legislative proposals to strengthen and support the IRS and its privacy policies.

Where to Find Out More About How IRS Protects Privacy

If you have questions, concerns, or comments about IRS privacy practices or the way your information is collected, maintained and used, we'd like to hear from you. Please e-mail us at privacy.advocate@irs.gov, telephone us at 202.927.5170, or write to:

Office of the Privacy Advocate
Internal Revenue Service
1111 Constitution Ave. NW
Washington, DC 20224

IRS
Department of the Treasury
Internal Revenue Service
Working to put service first

Publication no. 3851 (7/01)
Catalog no. 32217 F