Information designated as SBU and requiring such marking as determined by IRS components and especially those identified by FOIA and Privacy Act shall be distinctly labeled so persons authorized access are readily aware of its sensitivity. The lack of SBU markings, however, does not relieve the holder from safeguarding responsibilities. Unmarked SBU information already in records storage does not need to be removed, marked, and restored. However, when individual items are temporarily removed from storage that have no markings (and are subsequently deemed to be SBU) they shall be appropriately marked to reflect the correct status as SBU before being re-filed. Items containing SBU information shall be:

Protective measures start when markings are applied and end when such markings are cancelled or the records are destroyed. SBU information may be reproduced on regular office copiers to the extent needed to carry out official business. Flawed or otherwise unusable reproductions shall be destroyed via shredding or placement in burn-bags. Although SBU is Treasury’s standard for identifying sensitive information, some types of SBU information might be more sensitive than others and warrant additional safeguarding measures beyond the minimum requirements established herein. Certain information might be extremely sensitive based on repercussions if the information is released or compromised – potential loss of life or compromise of a law enforcement informant or operation. Employees must use sound judgment coupled with an evaluation of the risks, vulnerabilities, and the potential damage to personnel or property/equipment as the basis for determining the need for safeguards in excess of the minimum requirements contained herein.

Information designated as SBU shall be orally, visually, or electronically disseminated in such manner to avoid access by unauthorized persons. Tax information will not be released outside the Service except as provided in the Internal Revenue Code. Precautions might include preventing visual access and restricting oral disclosure to designated individuals. Access to SBU information shall be on a need-to-know basis as determined by the holder of the information. However, where there is uncertainty as to a person’s need-to-know, the holder of the information shall request dissemination instructions from his or her next level supervisor or manager. Holders of SBU information shall comply with any additional access and/or dissemination restrictions cited on the document. Unless marked to the contrary, SBU information officially released to the IRS may be provided to another U.S. Government agency without prior permission of the originator. Where there is uncertainty as to whether release information or not, the holder of the information shall request release instructions from his or her next level supervisor or manager.

A document containing information that requires protection must be stored in accordance with minimum protection standards whenever it is not in the custody of an authorized IRS employee. SBU information shall be stored, at a minimum, in a file cabinet, desk drawer, overhead storage bin, credenza, or similar locked compartment. SBU information may also be stored in a room or area with physical access control measures affording adequate protection and preventing unauthorized access by the public, visitors, or other persons without a need-to-know. Examples include, but are not limited to, a key-locked room, or restricted access work area controlled by a cipher lock or card reader. To the extent possible, SBU information stored in the same container used for safeguarding classified information shall be filed separately from classified information. When SBU and classified information are co-mingled in an IRS document or file, the required protection for the particular file will be governed by the highest level of classified information.

Field employees, at times, have sensitive information at the taxpayer's site which should be stored at an IRS facility. Service managers must ensure that employees adequately secure such information at the taxpayer's site. Sensitive tax information, such as agent's work papers, original returns, examination plans, probes, fraud data, etc. which is housed at the taxpayer's site, must be stored in a container under the control of the responsible Service employee. This container must be either a security container furnished by the Service, or if using a taxpayer furnished container, it must be modified by the Service (e.g., bars and locks) so that the Service is assured that the taxpayer cannot access the container. During duty-hours, the data must be under the personal custody of the Service employee if it is not containerized. If a lockable and suitable container cannot be provided, sensitive tax information will not be left at the taxpayer's site.

Tax information transmitted from one location to another must be provided adequate safeguards. If a person hand carries material in connection with a trip or in the course of daily activities, it should be kept with him or her to the extent possible. If tax information must be left in an automobile, it should be locked in the trunk. If the vehicle does not have a trunk the material should be concealed from plain view and secured in some manner. In either case, the vehicle should be locked and the material left unattended for only a short period. Hotel/motel rooms are usually not good locations to secure tax information; however, if the material must be left in such a location, it should be locked in a briefcase and concealed to the extent possible.

If SBU information is being moved from one building to another (even within the same fence line) or one location to another even if it is a short distance, all steps must be taken to protect the information from unauthorized disclosure, loss, damage or destruction. Procedures listed below are the minimum that shall be followed when transporting/transmitting SBU information.

All shipments of tax returns and return information (including magnetic media and microfilm) from any processing center to the National Office, the Computing Centers, other IRS offices or other agencies and other jurisdictions, will be documented on a Document Transmittal Form 3210, see Exhibit 10.2.13-2, or similar form and monitored to ensure that each shipment is properly and timely received and acknowledged. Every Service office engaged in the shipment of tax returns and return information shall designate individuals to be responsible for monitoring the shipments.

Tax data being retired to Federal Records Centers will be transmitted with SF 135, Record Transmittal and Receipt, see Exhibit 10.2.13-3. Column "f" of this form will contain the following statement: "These are restricted records and must be guarded at all times from disclosure to unauthorized persons."

Instructions provided in IRM 1.15.29, Records Control Schedule for Service Center Operations will be followed for the packing and shipping of tax data and all shipments will be coded "W" to require both restricted access and witnessed destruction.

Tax data transmitted to other authorized agencies and jurisdictions will be transmitted in accordance with this guidance and recordkeeping requirements of IRM 11.3, Disclosure of Official Information. These instructions do not apply to tax data transmitted to foreign governments in accordance with tax treaties.

Disposition and destruction of tax information must be in accordance with the IRM 1.15.2, Types of Records and Their Life Cycle, and IRM 1.15.3, Disposing of Records. Although IRS employees may know the proper methods of destroying tax data, management must reinforce this knowledge by including document destruction as a topic in orientation sessions, periodic group meetings and other awareness sessions.

Waste material generated in the processing of tax documents, protected data or other related documents must be destroyed by burning, disintegrating, pulping, shredding or by any other manner which in the judgment of the responsible security official renders the information contained in such material irrecoverable. The fact that material has been identified for destruction does not change the requirement to provide appropriate protective measures. Waste material must be provided the protection equal to that required by the most protected item. This material may include, but is not limited to, extra copies, photo impressions, microfilm, printouts, computer tape printouts, IDRS printouts, notes, work papers or any other material containing tax information which has served its purpose. Disposition of magnetic media can be found in IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance.

Waste material generated in the processing of tax documents, protected data or other related documents must be placed in receptacles specifically marked for sensitive information (i.e. shred material, burn, sensitive). Guidelines provided below must be followed in the protection and destruction of all sensitive waste material and care must be taken to ensure that sensitive information is not discarded in regular trash bins. Managers should periodically review work areas to make sure that sensitive waste material is being discarded in an appropriate manner.

The purpose of destroying protected information is to keep the information from being disclosed to unauthorized personnel. Protected information on any media will be removed, obliterated, or the media destroyed by or in the presence of an IRS employee. Security personnel will work with managers to develop and implement local procedures to enhance the concepts outlined here.

In the event tax information media is to be collected and destroyed by an independent contractor, to preclude the necessity of having an IRS employee present during destruction, the contract must include the safeguard provisions required by IRC 6103(n) and regulations therein. The provisions of the contract must allow for IRS inspection of the contractor facility and operations to ensure the safeguarding of IRS information. Waste material must be maintained in a secured container in a secured area to prevent sensitive information from unauthorized disclosure or access. The contractor must provide a certificate of destruction.

Paper data will be destroyed in one of the following ways:

When it becomes necessary to store protected information which has been collected for destruction, it will be provided protection equal to that required by the most protected item. All tax data will be destroyed by or in the presence of an IRS employee or authorized contract employee.

Protected information contained on any other form of media will be removed, obliterated, or the media destroyed by or in the presence of an IRS employee or contractor employee in such a manner that the information is totally unrecoverable. For guidance on disposition of magnetic media, see IRM 10.8.1.

After the protected information has been destroyed as specified in these standards, there are no restrictions on how or by whom the material will be collected and transported.

To reduce the cost involved in destroying tax data, local procedures will be developed to prevent employees from throwing coffee cups, lunch bags, newspapers, etc., in receptacles reserved for protected information.

There may be areas or activities where the volume of paper documents containing tax information is sufficient to make it more practical to destroy all documents in the area of activity.

information or other sensitive information may not be placed in regular recycling containers, but must be placed in secured containers and must be clearly marked.

The preferred approach is that sensitive information be segregated and shredded in accordance with guidelines contained in section 10.2.13.3.2.6, prior to turning it over to the recycler.

Unshredded sensitive information may be turned over to a contractor provided the contract includes necessary safeguards that will ensure compliance with 6103(n) requirements, provides for periodic safeguard reviews, and includes language describing methods of collection, pick-up, storage and disposition. The contract should also include provisions for a Certificate of Destruction.

Another method is to have IRS personnel observe the destruction of sensitive information upon delivery to the recycler. This allows for destruction of sensitive information while maintaining custody of the material up to the moment of destruction. Again the contractor must be in compliance with 6103(n) requirements which provides for safeguards and periodic safeguard reviews. However, this method is not recommended because of the resources that would be required.