Example:

Case files containing PII were lost while being shipped from one location to another. Since the data breach risk assessment resulted in a likelihood of harm, IM will send data breach notification letters to the potentially impacted individuals.

A TC 971 AC 505 will only be input on the accounts of individuals who are sent Letter 4281C because of an intentional unauthorized access or disclosure if they are offered identity protections such as identity protection/identity monitoring services or IP PIN in the letter. If they are only advised of their rights under IRC 7431, then no TC 971 AC 505 will be input.

Input of TC 971 AC 505 is limited and reserved for use by PGLD/IM employees; however, this indicator is visible and available for reference on the entity portion (CC ENMOD or CC IMFOLE) of an individual’s account. See Exhibit 10.5.4-2, TC 971 AC 505 — IRS Data Breach Tracking Indicator, for more information about this indicator.