The Department of the Treasury

FY 2013 Q2 Report on Privacy and Civil 

Liberties Activities Pursuant to Section 803 

of the Implementing Recommendations of 

the 9/11 Commission Act of 2007

For the reporting period 

December 1, 2012 to February 28, 2013

1. Introduction

The Treasury Department is committed to protecting the privacy and civil liberties of 

individuals in all Treasury programs. In recognition of the threat to individual privacy 

resulting from the global expansion of information technology (IT), the Department is 

determined to continue its vigilant oversight of the personally identifiable information (PII)

entrusted to its care. In coordination with the Office of Mangement and Budget (OMB), the 

Department has established a standard reportable framework tailored to the missions and 

functions of the Office of Privacy, Transparency, and Records (OPTR). Accordingly, below 

is an outline defining the functions on which OPTR is required to report under Section 803.

2. Department Actions

According to the Chief Administrative Officer of the Privacy and Civil Liberties Oversight 

Board (PCLOB), Treasury became the first agency to forward a quarterly Section 803 Report 

to the PCLOB. 

The IRS continues to demonstrate its commitment to maintaining the privacy of all American 

taxpayers, through its Identity Protection Personal Identification Number (IP PIN)

Program. The IP PIN is a 6-digit number designed to provide added protection to victims of 

identity theft. The IP PIN allows legitimate returns to bypass identity theft filters and prevent 

the processing of fraudulent returns, thereby allowing taxpayers to avoid delays in their 

federal tax return processing. For tax year (TY) 2012, IRS expanded the IP PIN population 

to 772,666 taxpayers (from 57,000 in TY 2010 and 251,000 in TY 2011). Additionally, the 

Office of Identity Protection enhanced the replacement IP PIN process for TY 2012 by 

implementing streamlined procedures for taxpayers who lose or misplace their IP PIN. 

Replacement IP PINs will now be issued at point of contact (by customer service 

representatives via the telephone or in a Taxpayer Assistance Center) after successful 

authentication by the taxpayer. 
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Treasury has continued its active involvement in the Information Sharing Environment (ISE) 

during the second quarter of FY 2013. The Director of the Office of Privacy Civil Liberties 

and Paperwork Reduction (OPCLPR) continues to serve as the chairperson of the ISE’s 

Privacy and Civil Liberties Subcommittee’s Compliance Review Working Group 

(CRWG). The CRWG developed a privacy and civil liberties checklist for implementing the 

ISE Privacy Guidelines. This checklist is serving as a compilation of the privacy and civil 

liberties requirements and best practices derived from those guidelines. Treasury’s Office 

of Intelligence and Analysis (OIA) volunteered to conduct a pilot of this checklist to assess 

any potential issues in its implementation, especially with respect to Intelligence Community 

elements. OIA completed the pilot and the results have been sent to the CRWG for 

consideration by the ISE Privacy and Civil Liberties Subcommittee.

In the fall of calendar year 2012, OPTR launched an initiative to create a clearance tracking 

(CT) application for privacy impact assessments (PIAs) which will be hosted on SharePoint 

and accessible to Treasury headquarters and its 12 bureaus. CT for PIAs will give users the 

capability to draft, edit, review, comment, and approve PIAs on line. This will streamline the 

PIA review and approval process, replacing the existing, labor intensive, time-consuming, 

manual process. Presently, the project timeline calls for the application to be operational on 

or before April 30, 2013.

OPCLPR is continuing the process of updating the courseware used for the FY2013 

Department-wide privacy awareness training. Part of this annual update calls for the 

consolidation of a number of annual training requirements to achieve more effective and 

timely training results. In addition, this year’s training will include a discussion of the 

interdependencies between, privacy, civil liberties, records management, Paperwork 

Reduction Act, Freedom of Information Act and Section 508 compliance (the OPTR 

functional areas). This action is done to ensure the training reflects the most current statutory 

and regulatory guidance related to privacy. In addition, OPTR is developing privacy training 

tailored for human resources professionals that will be presented to Treasury’s Office of 

Human Resources (OHR). 

3. Quarterly Reporting Matrix

The Department uses a standard reporting framework and instructions tailored to its mission 

and functions to address Section 803 reporting requirements. In developing the framework 

and instructions, the Department collaborated with OMB and the other agencies required to 

report under this section. 

The attached reporting matrix consolidates all Treasury privacy and civil liberties activities, 

including data on the reviews conducted, reference to the advisory guidance delivered, and 

information about written complaints received and processed.

3.1. Types of Potential Complaints

3.1.1. Privacy Complaint: A privacy complaint is a written allegation concerning a 

problem with or violation of privacy protections in the administration of the 
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programs and operations of the Department that may be the cause of harm or 

violation of personal or information privacy filed with the Department. This 

information may include: 

 Process and procedural issues, such as consent, collection, and appropriate notice; 

 Non-Privacy Act of 1974 issues, such as Terrorist Watchlist Redress processing

or identity theft mitigation; or 

 Privacy Act of 1974 issues.

3.1.2. Civil Liberties Complaint: A written allegation of harm or violation of the 

constitutional rights afforded individuals filed with the Department. Types of 

civil liberties complaints include, but are not limited to:

 First Amendment (Freedom of speech, religion, assembly, and association);

 Fourth Amendment (Protection against unreasonable search and seizure); and

 Fifth Amendment or Fourteenth Amendment, § 1 (Due process and equal 

protection).

4. Reporting Categories

 4.1. Reviews: Reviews include Treasury privacy and civil liberties activities delineated by

controlling authorities, such as the Privacy Act of 1974, 5 U.S.C. § 552a; E-Government Act 

of 2002 (P.L. 107-347); Consolidated Appropriations Act, 2005 (P.L. 108-447); OMB

Circular A-130, Appendix 1; and OMB Memo M-07-16. Examples include:

 Privacy Threshold Analyses (PTAs) – review of an IT system’s use of data to 

determine whether a PIA is required;

 Privacy Imapct Assessments (PIAs);

 OMB Memorandum 07-16 issues, including reviewing records to minimize the 

volume of PII necessary for the proper performance of an agency function, SSN

use reduction efforts, or initiatives related to combating identity theft;

 OMB Circular A-130 issues, including SORNs, routine use descriptions, Agency 

security contacts, recordkeeping and disposal policies, training practices, 

continued Privacy Act exemptions under 5 U.S.C. § 552a (j)(2), (k), and 

Computer Matching Programs;

 Persistent Tracking Technology features used on a website;

 Achievement of machine readability, which ensures that website users are 

automatically alerted about whether site privacy practices match their personal 

privacy preferences;

 Reviews under 5 CFR part 1320 (collection of information/Paperwork Reduction 

Act);

 Information Sharing Environment Privacy Guidelines Assessment including

policies and system reviews; and 

 Reviews related to the OMB Circular A-11, Exhibit 300 process.
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 4.2. Advice: Advice includes written policies, procedures, guidance, or interpretations of 

requirements for circumstances or business processes that respond to privacy or civil liberties 

issues or concerns. 

4.3. Response to Advice: Specific action taken in response to Treasury Advice. Examples 

of Responses to Advice include issuing a regulation, order, or directive; interpreting or 

otherwise issuing guidance as a result of Advice; reaching an agreement related to the 

Advice; and developing training programs or other procedures that enhance understanding of 

the issue that precipitated the request for Advice.

4.4. Disposition of Complaints: Treasury action in response to a privacy or civil liberties 

complaint. In response to a complaint, the Department will:

1. Take direct action (description in the summary report);

2. Refer to another agency or entity that may be able to assist in addressing the 

complaint (referral agency and explanation in summary report); or

3. Determine that no action is required (explanation in summary report).

The Department will continue to submit quarterly reports in coordination with OMB. The 

next quarterly report is due June 30, 2013, and will cover the period of March 1, 2013,

through May 31, 2013. The data collection period for each report ends approximately 30 

days prior to the report deadline.
Department of the Treasury 

Quarterly Report on Privacy and Civil Liberties Activities 

under Section 803 of the 9/11 Commission Act of 2007

March 31, 2013

Reviews Advice and Response Complaints Dispositions

Type Number Type Number Response Type Number

Privacy Threshold Analyses 

(PTAs)/Privacy Impact 

Assessments (PIAs) 37/42 SORN/PTA/PIA Guidance 2

Issue 

Procedures 

Guide PRIVACY 0

OMB Circular A-130

6

Risk Assessment of 

Commemorative Coin 

Competition – Challenge.gov 1

No Response 

Required

System of Records Notice 

(SORN) Compilation/SOR 

Routine Use 1/8

Computer Matching 

Agreements (CMAs) 4

Section 508 Internet/Intranet 

Scan 8

Treasury 508 Quarterly 508 

Scan 1

Social Security Number (SSN) 

Elimination or Redaction on 

Forms 58 CIVIL LIBERTIES

Allegation that civil 

enforcement action 

violated privacy 

and 1st and 5th 

Amendment Rights. 1

Complaint pending 

in District Court.