Abolishing the Data Processing Center of the Bureau of Internal Revenue

Case Overview and Summary

Summary of Executive Order No. 873

Abolishing the Data Processing Center of the Bureau of Internal Revenue
- The Data Processing Center (DPC) and Regional Data Centers of the Bureau of Internal Revenue (BIR) are abolished. (Sec. 1)
- Their activities shall be contracted to and performed by the Revenue Information Systems Services, Inc. (RISSI), a wholly government-owned foundation. (Sec. 1)
- Priority in rehiring shall be given to BIR Data Processing Center personnel who may qualify for positions under RISSI-prescribed qualification and merit system. (Sec. 1)
- BIR personnel who are laid off or voluntarily retire due to this Executive Order shall be entitled to all benefits and gratuities provided for under existing laws. (Sec. 1)
- The necessary amount shall be made available to the BIR from the Retirement Gratuity Fund to carry out the provisions of this Executive Order. (Sec. 1)

Budget and Contracts
- The budget of the abolished Data Processing Center and Regional Data Centers shall be set aside as a lump sum appropriation for use by the BIR to fund contracts with RISSI and to meet the exigencies of BIR Operations. (Sec. 2)
- Such contracts shall be effective immediately upon execution thereof. (Sec. 2)

Confidentiality and Security
- RISSI is authorized to handle and process any and all confidential information of the government. (Sec. 3)
- RISSI, including its officials and employees, are required to establish appropriate administrative, technical, and physical safeguards to ensure the security and confidentiality of records and to protect against any anticipated threats or hazards to their security or integrity which could result in substantial harm, embarrassment, inconvenience or unfairness to any individual or corporation on whom information is maintained. (Sec. 3)
- Officials and employees of RISSI violating the laws and established rules on the divulgence of confidential information obtained in the processing of tax returns and other documents shall be subject to the penalties provided for under Section 332 of the National Internal Revenue Code. (Sec. 3)
- Officials and employees of BIR supplying information to RISSI in accordance with the provisions of the contract as authorized herein shall not be considered in violation of said Section 332. (Sec. 3)

Implementation
- The Commissioner of Internal Revenue is authorized to issue such orders as may be necessary to implement the provisions of the Executive Order. (Sec. 4)
- Except as may otherwise be determined by the Commissioner, all present incumbents of positions in the abolished Data Processing Center and Regional Data Centers shall continue to exercise their usual functions, duties, and responsibilities, pending the issuance of implementing orders. (Sec. 4)

Effectivity
- This Executive Order shall take effect on February 1, 1983. (Sec. 5)