ࡱ> '` 0bjbj vr'xxxxxxx$ P0!\!D6"(####N$N$N$x6z6z6z6z6z6z6$8hY;6xN$N$N$N$N$6xx##46)))N$x#x#x6)N$x6)):/,xx/#" @t07 $p,/ 1|6066/R<@%N<//<x/`N$N$)N$N$N$N$N$66&N$N$N$6N$N$N$N$D  xxxxxx Introduction To utilize a Virtual Environment that receives, processes, stores or transmits FTI, the agency must meet the following mandatory notification requirements: Notification Requirements If the agencys approved SPR is less than six years old and reflects the agencys current process, procedures and systems, the agency must submit the Virtualization Notification, which will serve as an addendum to their SPR. If the agencys SPR is more than six years old or does not reflect the agencys current process, procedures and systems, the agency must submit a new SPR and the Virtualization Notification. Before the SPR has been updated with the information from the table below, the IRS strongly recommends that a state agency planning on implementing a virtual environment contact the Office of Safeguards at HYPERLINK "mailto:SafeguardReports@irs.gov" \o "Link to Safeguard Reports Email"SafeguardReports@irs.gov to schedule a conference call to discuss the details of the planned virtual implementation. The agency should be prepared to discuss the requirements below with respect to their virtual environment. The purpose of this document is to provide requirements for the information and documentation to include in the written notification to the IRS Office of Safeguards. This process will be used to assist the IRS in understanding and evaluating the state agencies virtualization plans for compliance with IRS Publication 1075, and help ensure agencies build Publication 1075 security requirements into virtual environments. How to Complete This Document Agencies should address the security controls and compliance inquiries included below and provide their complete response in Part 1of the form. All submissions should be sent to the IRS Safeguards mailbox ( HYPERLINK "SafeguardReports@irs.gov" \o "Link to Safeguard Reports Email" SafeguardReports@irs.gov) with the subject line: Virtualization Notification. The IRS may require additional information from the agency in order to evaluate the virtual environment, on a situational basis. Document Workflow Upon submission of the information required by the table below, agencies may be contacted by the IRS Office of Safeguards for additional information or discussion based upon the specific facts provided about the virtual environment architecture and implementation. Compliance with the Publication 1075 requirements for the virtualized environments will be routinely evaluated during the state agencys onsite Safeguard review. Documentation Requirements Virtualization Notification Form Part 1Date:Agency:POC Name:POC Title:POC Phone / Email:POC Site / Location:Site / Location FTI:#Security ControlCompliance InquiryPublication 1075 ReferenceAgency Response1System Type InformationProvide the name and version of the virtual host operating system (e.g., VMWare ESX 4.1), and the name and version of the guest OS that will receive, store, process or transmit FTI (e.g., Windows Server 2003). Provide the number of guest systems that will receive, store, process or transmit FTI.N/A[Note: Please be as detailed as possible in your responses] [Example Response: Host = VMWare 4.1.0, 260247, Guest OS = Windows Server 2008 Standard Service Pack 2, 1 Guest will receive, store, process and transmit FTI] [Before responding please delete all blue text and place your initial response in black text] Ex. Agency response 2System and Information Integrity (Commingling) Describe where the FTI data is stored in the virtual environment. For example, is the information shared and accessible to the host OS through shared disks or folders?Section 5.3, Page 29, It is recommended that FTI be kept separate from other information to the maximum extent possible to avoid inadvertent disclosures.[Example Response: There is nothing shared by the host or accessible to the host OS. At the start of the process a daily job scheduler copies files from the IRS Tumbleweed server to the Fed Server. obs are then moved to a sub-folder on the "Fed Server" (virtual machine) named Archive where they are stored for 60 days. All FTI information is kept separate from other agency data and there is no commingling]3System and Information Integrity (Hypervisor Access Control)Describe how the hypervisor is controlled and what restrictions are in place to prevent privilege escalation to the host OS. Exhibit 4 AC-6 Least Privilege The organization employs the concept of least privilege, allowing only authorized accesses for users (and processes acting on behalf of users) which are necessary to accomplish assigned tasks in accordance with organizational missions and business functions. Section 9.2 page 47 The information system must enforce the most restrictive access capabilities users need (or processes acting on behalf of users) to perform specified tasks.4System and Information Integrity (Partitioning Resources)Describe how the hypervisor partitions resources, and whether host operating systems can share or exchange resources or data.Exhibit 4 AC-4 Information Flow Enforcement The information system enforces assigned authorizations for controlling the flow of information within the system and between interconnected systems in accordance with applicable policy. Section 9.2 page 47 Security controls include account management, access enforcement, limiting access to those with a need-to-know, information-flow enforcement, separation of duties, least privilege, unsuccessful login attempts, system use notification, session locks, session termination, and remote access.5System and Information Integrity (Security Monitoring)Describe how introspection is employed in the environment. If introspection is not being used, describe what functions are in place for security monitoring on the network level and the host OS level.Exhibit 4 SI-4 Information System Monitoring Tools and Techniques The organization employs tools and techniques to monitor events on the information system, detect attacks, and provide identification of unauthorized use of the system. Section 9.17 page 56 Such system and information integrity security controls include flaw remediation, information system monitoring, information input restrictions, and information output handling and retention.6System and Information Integrity (Error Handling)Describe how error handling is controlled in the virtual environment.Section 9.16 Page 55-56 The information system shall prevent unauthorized and unintended information transfer via shared system resources. 7System and Information Integrity (Shared Resources)Will the virtual server host other agency guest systems not related to receiving, storing, processing or transmitting FTI?Section 9.17, Page 55-56 The information system shall prevent unauthorized and unintended information transfer via shared system resources.8Access ControlDescribe how the virtual environment (hypervisor and guest OS) is accessed by end users and administrators, and how administration of the hypervisior is restricted to authorized administrators. Exhibit 4 AC-3 Access Restrictions The information system enforces assigned authorizations for controlling access to the system in accordance with applicable policy. Section 9.2 page 47 The information system must enforce assigned authorizations for controlling system access and the flow of information within the system and between interconnected systems.9Access Control (VM Admin Functions)List and describe any virtual machine administrative functions that are enabled. These functions typically include VMchat, VM drag-in-drop, and VMftp. Section 9.6, Page 51 Configure the information system to provide only essential capabilities. Prohibit the use of functions, ports, protocols, and services not required to perform essential capabilities for receiving, processing, storing, or transmitting federal tax information.Access Control/ System and Communications ProtectionDescribe how hypervisor management communications are handled and protected. Include information on whether remote administration is enabled, whether communications are segregated on a separate network, whether management communications are encrypted, and how access is authorized.Exhibit 4 SC-9 Transmission Confidentiality The information system protects the confidentiality of transmitted information. Section 9.16 page 56 The information system must protect the confidentiality of FTI during electronic transmission.10AuditingDescribe how audit logging is being handled in the virtual environment at the hypervisor and the host OS level to track security-relevant activities on the systemSection 9.3 Page 48 Audit logs must enable tracking activities taking place on the system Exhibit 9, System Audit Management Guidelines, contains requirements for creating audit-related processes at both the application and system levels.11System and Services Acquisition (Location of Operations) Please state the agencys role in managing and administering the virtual system (i.e., will it be administered by a state data center or outsourced to a vendor?)Section 5.5.2, Page 32, Recipients of FTI are allowed to use a shared facility but only in a manner that does not allow access to FTI by employees, agents, representatives or contractors of other agencies using the shared facility.12System and Services Acquisition (Contractors)Describe how contractors are utilized in the virtual environment.Section 7.4.5, Page 41, The agency must identify all contractors with access to FTI and the purpose for which access was granted. The agency must provide the name and address of the contractor. Virtualization Notification Form Part 2Date:Reviewers Name:Approval Decision:Comments#Security ControlIRS CommentsAgency Response1Agency Response, Date X/XX/2012: Note: Please update the date above and place your response here. 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