EVT0010471_-_Policy_7003.2.pdf

STATE OF KANSAS

OFFICE OF PERSONNEL SERVICES

109 SW 9th STREET

PO BOX 3506

TOPEKA KS 66601-3506

DEPARTMENT OF REVENUE

PHONE: 785-296-3077

FAX: 785-296-1107

www.ksrevenue.org

GOVERNOR LAURA KELLY

MARK A. BURGHART, SECRETARY

KDOR POLICY 7003.2

Policy Category: Human Resources Keywords: IRS, FTI, Security Clearances Effective Date: August 24, 2022 Approval Date: August 24, 2022

Subject: Federal Tax Information (FTI) Security Clearance Requirements

1. PURPOSE. To provide policies, procedures, and guidelines to ensure that the Kansas Department of Revenue (KDOR) obtains appropriate security clearances to comply with Internal Revenue Service (IRS) Publication 1075

– Safeguards for Protecting Federal Tax Returns and Return Information, to ensure that KDOR employees, job candidates, and contractors are screened and subject to an appropriate security clearance so they do not pose a security risk, as it relates to Federal Tax Information (FTI).

2. DISCUSSION. To comply with IRS Publication 1075, KDOR requires all employees, job candidates and contractors with access to Federal Tax Information to pass and maintain a security clearance, effective September 1, 2017. KDOR employees will be subject to a security clearance if they are in or change to a position assigned a Risk Classification Level One, Two or Three. All KDOR job candidates applying for positions, contractors, and current KDOR employees that have access to FTI will be provided the following information:

A) Definitions of Risk Classification levels.

B) Explanation of security clearance requirements.

C) Requirements and process to submit fingerprints.

D) Determination of eligibility for employment in a position that has access to FTI.

3. RISK CLASSIFICATION. Risk Classification Levels are assigned to positions, not employees or contractors, based on access to FTI. The Risk Classification Level for supervisory positions will be the same as the highest level assigned to one of their employees, with the exception of Level Three.

A) Level Zero. Position does not have access to FTI.

B) Level One. Position has direct access to FTI contained in taxpayer records in KDOR tax applications or hard copy returns. These positions have access to ATP, ACM, ACSS, or are located in the Motor Fuel unit, and include attorney, auditor, and IT support positions that are authorized to request hard copies of federal tax returns.

C) Level Two. Position has direct access to data sets and files containing FTI. Some of these positions are located in the Federal/State unit. Others are programmers or computer network administrators that can look at entire collections of FTI data regarding federal returns for Kansas Taxpayers.

D) Level Three. Position has unsupervised access to the Office of Information Technology Services (OITS) areas that contain equipment which stores FTI.

4. PROCEDURES. Pursuant to this policy and in compliance with IRS Publication 1075, any person who is deemed to be a security risk will not be eligible for any position with access to FTI. This policy applies to external candidates who apply for a position with FTI access at KDOR, contractors working on KDOR projects with access to FTI, and KDOR employees who are in or change to a position assigned a Risk Classification Level One, Two or Three. KDOR reserves the right to administer ongoing security clearance checks on any employee or contractor with access to FTI. Continued employment with KDOR is contingent upon passing the ongoing security clearance checks.

Security clearance checks may consist of, but not be limited to, the following activity:

A) Applicants for positions and contractors with Risk Classification Levels One, Two, or Three must complete a KDOR Security Clearance Form disclosing any past convictions of certain crimes and submit a fingerprint card to the Kansas Bureau of Investigation (KBI)/Federal Bureau of Investigation (FBI). Information provided will be submitted to the KBI/FBI for a criminal history records check in order to determine if he or she is a security risk.

A person will be deemed a security risk according to the following:

a. An individual working within the United States who is not lawfully present in the United States.

b. An individual who is otherwise shown to be untrustworthy based on information obtained through appropriate security clearance requirements. This includes, but is not limited to:

1. Adult felony conviction or misdemeanor conviction relating to any of the following crimes:

i. Theft, fraud, or deceit, including but not limited to embezzlement, forgery, passing of worthless checks, counterfeiting, financial card fraud, computer crimes, perjury, obstruction, dealing in false identification documents, bribery, official misconduct, presenting or permitting a false claim, misuse of public funds.

ii. The disqualifying nature of felony or misdemeanor convictions will be determined by the type of crime and the length of time that has passed since the crime was committed.

2. Misrepresentation on the employment application.

B) Resume verification.

C) Checking references from the employment application.

D) Verifying employment information.

E) Verifying education information.

F) Confirming SSN through the Social Security employment verification system.

G) Verification of lawful presence in the United States.

H) State of Kansas Employment Tax Clearance Certificate.

5. EMPLOYEE RESPONSIBILITY.

A) External Job Candidates and new Contractors:

a. All offers of employment for positions with Risk Classifications Levels One, Two or Three will be made contingent upon submitting to and passing the appropriate security clearance.

Specifically, job candidates chosen for positions that have access to FTI are required to pass and maintain a security clearance as a condition of their employment. This requirement is applicable to new employees of KDOR contractors.

B) Current KDOR Employees and Contractors:

a. All employees and contractors currently occupying positions that have access to FTI will be required to submit to and pass the security clearance.

b. KDOR employees will be subject to a security clearance if they are in or change to a position assigned a Risk Classification Level One, Two or Three. Change is defined as: transfer, demotion, promotion, reorganization or significant change of duties resulting in the employee being assigned to a position with a higher Risk Classification level. The change to the higher Risk Classification level position will be contingent upon passing the security clearance.

1. Should a current employee seeking to move to a position assigned a higher Risk Classification level be deemed a security risk according to the criminal records check, he or she will not be allowed to return to a position with access to FTI.

2. Any employee who fails the security clearance requirement based on the results of his or her KBI/FBI background check will immediately be relieved of his or her duties with pay for not more than 10 calendar days in order to allow him or her opportunity to provide documentation refuting the findings of the KBI.

3. Any contractor who fails the security clearance requirement based on the results of his or her KBI/FBI check will be immediately relieved of duties and will not be allowed access to FTI.

C) Any job candidate, contractor, or current employee who fails to submit to and pass the security clearance appropriate to his or her position will not be allowed to hold a position with access to FTI.

D) Remaining Conviction Free: Upon implementation of this policy, all employees and contractors in positions with Risk Classification Levels One, Two or Three are responsible for remaining conviction free and are required to notify KDOR OPS anytime they are charged with or convicted of any of the crimes specified in Section 4.A.b.1.i. of this Policy. A conviction while employed is considered failing the security clearance requirements. Failure to self-report as required may result in the employee’s dismissal from employment.

6. CONFIDENTIALITY.

A) All information obtained through the background check process will be reviewed by KDOR Office of Personnel Services (OPS). OPS staff will consult with Legal Services staff as needed. This information will be kept confidential and release of it, intentionally or otherwise, will result in disciplinary action.

B) Upon completion of a job candidate’s or employee’s security clearance check, all related materials shall be sealed and stored in a locked file maintained by KDOR Office of Personnel Services.

7. CONTROLS. Appropriate security clearance checks shall be used only to evaluate a selected candidate for employment and contracting purposes and shall not be used to discriminate on the basis of race, color, gender, religion, national origin, ancestry, age, military or veteran status, or disability status.

PS-3 PERSONNEL SCREENING

Control:

a. Screen individuals prior to authorizing access to the system; and

b. Rescreen individuals, a reinvestigation must be conducted within 10 years from the date of the previous background investigation. Re-employment with a state agency is also a condition for rescreening.

(1) PERSONNEL SCREENING | CLASSIFIED INFORMATION

Verify that individuals accessing a system processing, storing, or transmitting classified information are cleared and indoctrinated to the highest classification level of the information to which they have access on the system.

(2) PERSONNEL SCREENING | FORMAL INDOCTRINATION

Verify that individuals accessing a system processing, storing, or transmitting types of classified information that require formal indoctrination, are formally indoctrinated for all the relevant types of information to which they have access on the system.

8. ACTION. Employees, contractors and job candidates shall comply with this policy.

Mark A. Burghart Secretary of Revenue

Distribution: All Employees Job Candidates Contractors