10.5.4. Incident Management Program

(1) Overview. This IRM defines the mission, objectives, and governance structure of the Privacy Policy and Compliance Incident Management Program. It provides the organizational framework for carrying out specific policies and procedures aimed at timely reaction and appropriate responses to occurrences of IRS data losses, thefts, and inadvertent unauthorized disclosures involving SBU data, including PII and tax information.

(2) Privacy, Governmental Liaison and Disclosure (PGLD). Privacy, Governmental Liaison and Disclosure (PGLD), previously known as Privacy, Information Protection and Data Security (PIPDS), is responsible for ensuring consistency in all processes and procedures affecting the ways the IRS handles privacy information protected by statute, regulation, Executive Order, or internal policy.

1. PGLD works with other Business Units to provide the IRS with the tools and resources necessary to protect sensitive taxpayer and employee data from potential identity theft due to IRS incidents involving the loss or theft of IRS IT assets and Bring Your Own Device (BYOD) assets containing SBU data, including PII and tax information; the loss or theft of physical and electronic documents that include SBU data, including PII and tax information; and inadvertent unauthorized disclosures of SBU data, including PII and tax information.

2. PGLD also leads IRS privacy and records policies, coordinates privacy protection guidance and activities, responds to privacy complaints, and promotes data protection awareness throughout the IRS.

(3) PGLD Incident Management (IM) Office. IM was established to ensure Servicewide implementation of federal directives to protect taxpayers and government employees against IRS data losses and misuse of sensitive personal data.

1. Since September 2007, the IM Office (previously known as the ITIM Office) in PGLD (previously known as PIPDS) has been responsible for administering and managing IRS program requirements by ensuring IRS incidents involving the loss or theft of IRS IT assets and BYOD assets containing SBU data, including PII and tax information; the loss or theft of physical and electronic documents that include SBU data, including PII and tax information; and inadvertent unauthorized disclosures of SBU data, including PII and tax information, are investigated, analyzed and resolved by PGLD/IM.

2. IM is dedicated to assisting taxpayers and government employees potentially impacted by IRS incidents involving SBU data, including PII and tax information, by working quickly and thoroughly to investigate the incidents to decrease the possibility that the information will be compromised and used to perpetrate identity theft or other forms of harm. See IRM 10.5.4.4.4, PGLD/Incident Management Risk Assessment, and Exhibit 10.5.4-1, Glossary of Incident Management Terms, Definitions, and Acronyms, for additional information about, and examples of, harm/risk of harm.

3. IM manages the reporting, risk assessment, and tracking of IRS incidents involving SBU data, including PII and tax information, as well as notification to potentially impacted individuals.

Note: IM isn’t responsible for any disciplinary actions that can result from an employee’s or manager’s failure to protect IT equipment or information, employee data, SBU data, or PII, nor is IM responsible for contacting Labor Relations regarding a manager’s or employee’s failure to protect IT equipment or information, employee data, SBU data, or PII.

(1) Federal agencies have been instructed by the Office of Management and Budget (OMB) and the Department of the Treasury to address the increasing occurrence of identity theft and to safeguard Personally Identifiable Information (PII).

(2) Executive Order 13402, May 10, 2006, established the President’s Identity Theft Task Force. The Task Force recommended that Federal agencies reduce the incidence and impact of identity theft and improve their capacity to respond to data breaches. The Task Force recognized that any comprehensive information security program - whether in the public or private sector - must include policies for responding to a data breach. Although every breach is different, experience has shown that having policies in place in advance is critical to ensuring a proper response. Such policies should address whether, how, and when to inform potentially impacted individuals of the loss of their data, and whether to offer services such as free credit monitoring to those individuals. The Task Force developed guidance that OMB issued to all agencies and departments on September 20, 2006, on responding to data breaches that pose a risk of identity theft. The guidance provided agencies with a framework for conducting an analysis of the breach to determine whether the breach posed a significant risk of identity theft and offered practical advice on implementing a breach response plan, including how and when to provide notice to potentially impacted individuals. To further the goals of the Task Force guidance, in May 2007, OMB issued Memorandum M-07-16, Safeguarding Against and Responding to the Breach of Personally Identifiable Information, which emphasized agencies’ responsibilities under existing laws, such as the Privacy Act of 1974, to safeguard PII, and instructed Federal agencies to enhance their safeguards for PII and to enact data breach handling and data breach notification policies. The President’s Identity Theft Task Force Report of September 2008, https://www.ftc.gov/sites/default/files/documents/reports/presidents-identity-theft-task-force-report/081021taskforcereport.pdf, documented the Task Force’s efforts to implement the Strategic Plan’s recommendations.

(3) In January 2017, OMB Memorandum M-17-12, Preparing for and Responding to a Breach of Personally Identifiable Information, https://www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/memoranda/2017/m-17-12_0.pdf, rescinded and replaced OMB Memorandum M-07-16, updated existing OMB data breach notification policies and guidelines in accordance with the Federal Information Security Modernization Act of 2014 (FISMA), and implemented recommendations included in OMB Memorandum M-16-04, Cybersecurity Strategy and Implementation Plan (CSIP) for the Federal Civilian Government.

(4) See IRM 10.5.4.1.8, Related Resources, for a list of other relevant OMB Memoranda, Federal Guidance, and IRMs, and details about where to locate them.

(5) The Incident Management Program was created in response to OMB directives and the President's Identity Theft Task Force recommendations, and to ensure IRS compliance with OMB requirements for data breach management and data breach notification. Consistent with the OMB directives, the IRS notifies potentially impacted individuals when the data breach risk assessment results in a likelihood of harm to the potentially impacted individuals. See IRM 10.5.4.4.4, PGLD/Incident Management Risk Assessment, and Exhibit 10.5.4-1, Glossary of Incident Management Terms, Definitions, and Acronyms, for additional information about, and examples of, harm/risk of harm.

(1) Incident Management Program Oversight. The Privacy Policy and Compliance (PPC) Director is the executive responsible for oversight of this program. PPC is under the Office of Privacy, Governmental Liaison and Disclosure (PGLD), which is under the Office of the Deputy Commissioner for Operations Support (OS). The Incident Management and Employee Protection (IMEP) Associate Director reports to the PPC Director, and oversees the IMEP program.

(2) Incident Management Program. The Incident Management Program includes the management of the IRS data breach reporting process, as well as the risk assessment and tracking of IRS data breaches and notification to individuals potentially impacted by IRS data breaches. The Incident Management Program also includes output from Cybersecurity’s Safeguarding Personally Identifiable Information Data Extracts (SPIIDE) application. IM receives events for investigation, addresses applicable receipts within established procedures, and collaborates on referred events not meeting IM’s criterion.

1. IM has the following responsibilities related to administering the Incident Management Program in the IRS:

• Interpreting federal laws, regulations, and policies relating to the protection of Personally Identifiable Information (PII). See IRM 11.3.1, Disclosure of Official Information, Introduction to Disclosure, for more information about the Disclosure program and the protection of official information including personal information and tax records.

• Coordinating with other program areas in the IRS to ensure compliance with OMB Memorandum M-17-12 and related directives

• Receiving SPIIDE events for investigation and addressing accordingly when received

• Conducting risk assessments of IRS data breaches and determining how to best mitigate the identified risks, such as providing identity protection/identity monitoring services, or offering guidance on how the potentially impacted individuals can mitigate their own risk of harm, such as setting up fraud alerts or credit freezes, changing or closing accounts, etc.

• Analyzing and tracking IRS data breaches reported to the IM office as well as contacting the BU data owner or Reporting Employee for additional information concerning the incident or data breach

• Notifying potentially impacted individuals (if the data breach risk assessment results in a likelihood of harm, such as the potential for identity theft)

• Reporting weekly to the Records and Information Management (RIM) Program Office any incidents of lost, stolen, or destroyed records

• Identifying risks associated with IRS data breaches and collaborating with the BU data owner on mitigating the risks

• Preparing all reporting documentation pertaining to IRS data breaches

• Making notification recommendations about potentially impacted individuals based on assessed risk and consulting with appropriate law enforcement officials and other offices or authorities if necessary

• Identifying emerging trends and developing appropriate strategies and responses

• Improving procedures to reduce the occurrence of IRS incidents and data breaches

• Developing, defining, monitoring, and executing IM policies and procedures

• Overseeing the maintenance, publication, and conveyance of the Privacy and Information Protection Incident Management IRM

• Communicating and coordinating with internal stakeholders to ensure consistency about data breach policy and issues

Note: IM isn’t responsible for any disciplinary actions that can result from an employee’s or manager’s failure to protect IT equipment or information, employee data, SBU data, or PII, nor is IM responsible for contacting Labor Relations regarding a manager’s or employee’s failure to protect IT equipment or information, employee data, SBU data, or PII.

(3) Reporting Employees and Business Unit (BU) Data Owners. In addition to timely reporting (immediately upon discovery) so PGLD/IM can begin its risk assessment process, reporting employees and/or BU data owners have other responsibilities such as containment, mitigation, prevention, providing information requested by PGLD/IM within two business days of request, taking disciplinary actions, and contacting potentially impacted individuals to request replacement documents. See a) thru f) below for a description of the reporting employee and/or BU data owner responsibilities. Also see IRM 10.5.4.3.1, Timely Reporting: Immediately Upon Discovery, for additional information about timely reporting.

1. Containment. The BU data owner must take immediate action to contain the incident or data breach to prevent any further PII exposure, e.g., if employee or taxpayer data is inadvertently exposed on the internet, the BU data owner must immediately take steps to remove the data and/or close the access; or, if DVDs have been shared with material that should have been redacted, the BU must take steps to immediately recover them and request the recipient remove public access (if the information was made publicly available) and replace it with the proper data. The BU should contact Cybersecurity’s Online Fraud Detection and Prevention Office if assistance is required to contain a data breach involving an electronic transmission such as email or a data breach involving the posting of information on the internet. Additional actions related to containment will depend on the nature of the breach and may involve other BUs as needed.

   Note: If the employee reporting the data breach is not the BU data owner, the reporting employee must collaborate with the BU and PGLD/IM to determine the best approach for managing containment.

   Note: The BU data owner will ensure PGLD/IM is apprised of any containment actions taken. PGLD/IM will document the containment actions taken by the BU on e-Trak.

2. Mitigation. The BU data owner must analyze the event circumstances to mitigate or lessen the impact of the incident or data breach. Necessary actions may include requesting the person who erroneously received a notice, letter, or transcript, to return or destroy it; asking the incorrect recipient of a fax, EEFax, email, etc., to destroy or delete it; or asking the person who received an erroneously addressed or misdelivered shipment to secure the shipment and await collection by an IRS employee. Necessary actions by the BU may also include physically recovering hardcopy documents or coordinating with TIGTA to ensure all recovery options are considered.

If	Then
If a notice, letter, or transcript is sent in error to the wrong person and not the last known address of record, or multiple correspondence for different taxpayers are included in one envelope	The BU data owner must ask the person who incorrectly received the notice, letter, or transcript to return the document, or, if the person refuses to return the document, ask them to destroy it.
If a fax, EEFax, email, or other electronic transmission is sent to the wrong addressee	The BU data owner must ask the person who incorrectly received the fax, EEFax, email, or other electronic transmission, to delete it or destroy it (if printed).
If a shipment is erroneously addressed or misdelivered, and the recipient contacts the IRS regarding the erroneously received shipment	The BU data owner must take steps to recover the shipment.

Note: The BU data owner must ensure PGLD/IM is apprised of any mitigation actions taken. PGLD/IM will document the mitigation actions taken by the BU on e-Trak.

3. Prevention. The BU data owner must determine the necessary steps to prevent similar incidents or data breaches in the future. This could entail investigating the cause of the incident or data breach and developing a prevention plan if necessary. A prevention plan may include a security audit of both physical and technical security, a review and/or development of policies and procedures, and a review of employee training.

Note: The BU data owner must ensure PGLD/IM is apprised of any prevention actions taken. PGLD/IM will document the prevention actions taken by the BU on e-Trak.

4. Providing Requested Information. The reporting employee or BU data owner must provide all information requested by PGLD/IM, e.g., complete, unredacted SSNs, names, dates, etc., within two business days of request to ensure timely reporting and taxpayer notification. If a delay is likely, contact IM at 267-466-0777 to facilitate next steps.

Note: If the unredacted (not truncated) SSNs for the potentially impacted individuals involved in the data breach are not readily available, the Reporting Employee or BU data owner must research to determine the complete SSNs. After due diligence, if the unredacted SSNs for the potentially impacted individuals cannot be determined, email the *PII mailbox, or contact IM at 267-466-0777.

5. Disciplinary Actions. Discipline can result for failure to protect equipment or information, as well as for a manager’s failure to supervise and train as it pertains to PII information. A BU data owner whose employee experiences a data loss, theft, or disclosure, or asset loss or theft, because the employee did not properly safeguard the data or asset, must contact the servicing Labor Relations Specialist to discuss the appropriateness of any disciplinary action. For disciplinary actions related to losses or thefts of laptops or other electronic devices, or the loss, theft or disclosure of SBU data, including PII and tax information, and improperly safeguarding electronic or paper records, see Document 11500, IRS Manager’s Guide to Penalty Determinations, and IRM 6.751.1, Discipline and Disciplinary Actions: Policies, Responsibilities, Authorities, and Guidance.

Note: PGLD/IM isn’t responsible for any disciplinary actions that can result from an employee’s or manager’s failure to protect IT equipment or information, employee data, SBU data, or PII, nor is IM responsible for contacting Labor Relations regarding a manager’s or employee’s failure to protect IT equipment or information, employee data, SBU data, or PII.

6. Contacting Potentially Impacted Individuals to Request Replacement Documents. Although PGLD/IM notifies the potentially impacted individuals of an IRS data breach if it’s determined there’s a potential risk of harm to the individuals as a result of the data breach (such as the potential for identity theft), the BU data owner is responsible for contacting the potentially impacted individuals if an original document, or remittance (such as a personal check), was lost, stolen, or destroyed, to explain that the original document or remittance was lost, stolen, or destroyed, and to request that the individual resend the document or remittance. Established functional taxpayer contact processes must be followed when requesting replacement documents or remittances from the potentially impacted individuals. See IRM 10.5.4.4.4, PGLD/Incident Management Risk Assessment, and Exhibit 10.5.4-1, Glossary of Incident Management Terms, Definitions, and Acronyms, for additional information about, and examples of, harm/risk of harm.

   Note: In addition to requesting replacement documents or remittances, contact with the potentially impacted individuals may include a brief, general explanation of the data breach, e.g., "a package containing your document (or remittance) was lost in shipment." If the BU data owner has any questions about contacting the potentially impacted individuals about the data breach, the BU data owner may call PGLD/IM at 267-466-0777 or email the *PII mailbox. Do not share the telephone number or mailbox address with the potentially impacted individuals.

(4) In the event you or your Business Unit is called upon to participate as part of a Breach Response Team (BRT), there are specific activities you may be required to conduct based on your specific Business Unit and/or role in the organization. See the High-Risk Data Breach Quick Reference Guide listed in the Other Related Resources section of the Report Losses, Thefts or Disclosures page in the Disclosure and Privacy Knowledge Base Site and Document 13347, Data Breach Response Playbook, for additional information on the activities you may be required to conduct. Also see IRM 10.5.4.4.2, High-Risk Data Breaches, for additional information concerning high-risk data breaches.

(5) For the definition of Reporting Employee and Business Unit (BU) Data Owner, see IRM 10.5.4.1.6, Terms, and Exhibit 10.5.4-1, Glossary of Incident Management Terms, Definitions, and Acronyms.

(1) PGLD/IM has established Business and Organizational measures to measure the timeliness of IRS data breach notifications to potentially impacted individuals of IRS data breaches. See IRM 10.5.4.4.6.3, Timeliness of the Data Breach Notification.

(2) PGLD/IM provides reports on Business Performance as it relates to IRS data breaches to Points of Contact within each Business Unit. The reports can be used by PGLD/IM as well as the BUs to identify trends as well as training and outreach opportunities.

1. Quarterly Scorecard Report. The Quarterly Scorecard Reports (in PDF format) list the number of reported data breaches received by PGLD/IM per quarter per Business Operating Division (BOD). The Reports, which are shared with each respective BOD, provide an analysis of all reported data breaches identified as a loss, theft, or inadvertent unauthorized disclosure based on the type of asset, location, and risk assessment code. The Quarterly Scorecard Report is also shared with the Privacy Compliance office in PGLD to determine if there are any processes for which a Business PII Risk Assessment (BPRA) can be performed. The BPRA is used to identify vulnerabilities and make recommendations for changes to improve IRS security and privacy policies and practices. A separate Quarterly Scorecard Report capturing the performance of the IRS overall is also provided to each BOD. The IRS Quarterly Scorecard Report provides an analysis of all reported data breaches identified as a loss, theft, or inadvertent unauthorized disclosure as well as those identified as other, such as Private Debt, SPIIDE, UNAX, etc.

2. Quarterly E-Trak Data Extract Report. The e-Trak Data Extract Reports (in Excel format), which list the losses, thefts, and inadvertent unauthorized disclosures reported to PGLD/IM per BOD, is usually provided quarterly but can be provided more frequently (such as monthly) upon request by the BOD. The extract provides an analysis of all reported data breaches identified as a loss, theft, or inadvertent unauthorized disclosure based on the type of asset, location, reporting employee, and risk assessment code.

3. Weekly Code Red Recommendations Reports. The Code Red Recommendations Report lists data breaches potentially impacting individuals likely to be at risk of identity theft or other harm due to the loss, theft, or disclosure of PII. The Report is presented to the PII Working Group weekly by PGLD/IM for information only; no concurrence or approval by the PII Working Group (PIIWG) is required.

(1) Program controls developed to oversee the Incident Management Program include the following:

1. PGLD/IM conducts quarterly Operational Reviews to evaluate key performance measures to ensure agency program requirements are met.

2. PGLD/IM uses established Business and Organizational measures to measure the timeliness of IRS data breach notifications.

3. PGLD/IM uses the Quarterly Scorecard Report which contains information from e-Trak (a web interface for case tracking) to assess Business Unit and IRS performance.

4. PGLD/IM reconciles redeemed identity protection/identity monitoring codes monthly to ensure the codes assigned to potentially impacted individuals via Letter 4281C were redeemed by the individuals to whom they were assigned before the monthly invoice is paid.

5. PGLD/IM generates a Code Red Recommendations Report weekly listing the data breaches deemed to be Code Red (data breaches requiring notifications) to notify the PPC Director and the IMEP Associate Director of the data breaches pending notification.

6. PGLD/IM reviews all PII Breach Reporting Forms and alerts the Records and Information Management (RIM) Program Office if official records have been reported as lost, stolen, or destroyed on the PII Breach Reporting Form in accordance with IRM 1.15.3.4, Unauthorized Disposition of Records, and 36 CFR 1230, Unlawful or Accidental Removal, Defacing, Alteration, or Destruction of Records.

(1) Incident. OMB Memorandum M-17-12, Preparing for and Responding to a Breach of Personally Identifiable Information, https://www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/memoranda/2017/m-17-12_0.pdf, defines an incident as an occurrence that (1) actually or imminently jeopardizes, without lawful authority, the integrity, confidentiality, or availability of information or an information system; or (2) constitutes a violation or imminent threat of violation of law, security policies, security procedures, or acceptable use policies.

1. An incident involving the loss or theft of an IRS IT asset or BYOD asset containing PII, or the loss or theft of a physical document that includes PII, or the inadvertent unauthorized disclosure of PII, is known as a data breach. See the Data Breach definition below. Often, an occurrence may be first identified as an incident, but later identified as a data breach once it is determined that the incident involves PII, as is often the case with a lost or stolen laptop or electronic storage device.

(2) Data Breach. A data breach is a type of incident involving a loss, theft, or inadvertent unauthorized disclosure of PII. OMB Memorandum M-17-12, Preparing for and Responding to a Breach of Personally Identifiable Information, https://www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/memoranda/2017/m-17-12_0.pdf, defines a data breach as the loss of control, compromise, unauthorized disclosure, unauthorized acquisition, or any similar occurrence where (1) a person other than an authorized user accesses or potentially accesses personally identifiable information or, (2) an authorized user accesses or potentially accesses personally identifiable information for an other than authorized purpose.

1. A data breach is not limited to an occurrence where a person other than an authorized user potentially accesses PII by means of a network intrusion, a targeted attack that exploits website vulnerabilities, or an attack executed through an email message or attachment. A data breach may also include the loss or theft of physical documents that include PII and portable electronic storage media that store PII, the inadvertent disclosure of PII on a public website, or an oral disclosure of PII to a person who is not authorized to receive that information. It may also include an authorized user accessing PII for an other than authorized purpose. Often, an occurrence may first be identified as an incident, but later identified as a data breach once it’s determined that the incident involves PII, as is often the case with a lost or stolen laptop or electronic storage device.

2. Some common examples of a data breach include:

• A laptop or electronic storage media containing PII is lost or stolen.

• A document containing PII is lost or stolen, or lost or stolen during shipping.

• A verbal disclosure of PII to an individual not authorized to receive it.

• An email containing PII is sent to the wrong person or not properly encrypted.

• An IT system that maintains PII is accessed by a malicious actor.

• An inadvertent disclosure of PII on a public website.

• An authorized user accesses PII for other than an authorized purpose.

(3) Major Incident. OMB Memorandum M-23-03, Fiscal Year 2023 Guidance on Federal Information Security and Privacy Management Requirements, https://www.whitehouse.gov/wp-content/uploads/2022/12/M-23-03-FY23-FISMA-Guidance-2.pdf, defines a "major incident" as:

1. Any incident that is likely to result in demonstrable harm to the national security interests, foreign relations, or the economy of the United States, or to the public confidence, civil liberties, or public health and safety of the American people; or,

2. A breach that involves personally identifiable information (PII) that, if exfiltrated, modified, deleted, or otherwise compromised, is likely to result in demonstrable harm to the national security interests, foreign relations, or the economy of the United States, or to the public confidence, civil liberties, or public health and safety of the American people.

Note: OMB-M-23-03 requires a determination of major incident for any unauthorized modification of, unauthorized deletion of, unauthorized exfiltration of, or unauthorized access to the PII of 100,000 or more individuals.

(4) Potentially Impacted Individual. Individuals, as defined by the Privacy Act of 1974, potentially impacted by occurrences of IRS data losses, thefts, and inadvertent unauthorized disclosures involving Sensitive But Unclassified (SBU) data, including Personally Identifiable Information (PII) and tax information, are known as "Potentially Impacted Individuals." Consistent with OMB directives, the IRS notifies potentially impacted individuals when a data breach involves the loss, theft, or inadvertent unauthorized disclosure of PII, and the result of the risk assessment indicates there is a potential risk that the compromised data may be used by someone other than the owner of the information to commit a crime or fraud.

(5) Records Loss. "Records loss" is defined as the theft or unauthorized destruction, deletion, or removal of any record (or device containing records) under an employee’s control, which cannot be recreated or restored.

1. Records. The term "records" includes all recorded information, regardless of form or characteristics, made or received by a Federal agency under Federal law or in connection with the transaction of public business and preserved or appropriate for preservation by that agency or its legitimate successor as evidence of the organization, functions, policies, decisions, procedures, operations, or other activities of the United States Government or because of the informational value of data in them. (44 USC 3301).

2. Unauthorized Destruction. Unauthorized destruction is the removal from the legal custody of the Federal Government or the alienation, alteration, or mutilation of records without regard to the provisions of IRS Records Control Schedules (RCS 8 through 37) located in IRS Document 12990, Records and Information Management Records Control Schedules (Catalog 57910D), and General Records Schedules (GRS) located in IRS Document 12829, General Records Schedules (Catalog 54713E).

3. Reporting to NARA. Per 36 CFR 1230.14, How do agencies report incidents?, all federal agencies must report promptly any unlawful or accidental removal, defacing, alteration, or destruction of records in the custody of that agency to the National Archives and Records Administration (NARA). The IRS Records Officer reports any IRS incidents of erroneous records destruction to NARA.

(6) Personally Identifiable Information (PII). The definition of personally identifiable information is provided by OMB in OMB Memorandum M-17-12, Preparing for and Responding to a Breach of Personally Identifiable Information, https://www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/memoranda/2017/m-17-12_0.pdf.

1. The term PII refers to information that can be used to distinguish or trace an individual's identity, either alone or when combined with other information that is linked or linkable to a specific individual.

2. Some examples of PII are: name, such as full name, maiden name, mother’s maiden name, alias, or name control (first four letters of last name); address information, such as street address or email address; a unique set of numbers or characters assigned to a specific individual, such as telephone numbers, Social Security number (or last four digits of SSN), passport number, driver’s license number, email or Internet Protocol (IP) address, or Standard Employee Identifier (SEID); personal characteristics and data, such as date and place of birth, age, height, or weight; and biometric information such as x-rays, fingerprints, retina scan, or DNA.

3. For more information about PII and additional examples, visit the Personally Identifiable Information page in the Disclosure and Privacy Knowledge Base Site; see IRM 10.5.1, Privacy and Information Protection, Privacy Policy; and IRM 10.8.1.3.16.1.3, Personally Identifiable Information (PII).

(7) Sensitive But Unclassified (SBU) Data. Any information which if lost, stolen, misused, or accessed or altered without proper authorization, may adversely affect the national interest or the conduct of federal programs (including IRS operations), or the privacy to which individuals are entitled under the Privacy Act.

1. SBU data includes, but is not limited to: Federal Tax Information (FTI), Personally Identifiable Information (PII), Protected Health Information (PHI), certain procurement information, system vulnerabilities, case selection methodologies, systems information, enforcement procedures, and investigation information.

2. SBU data includes categories of protected information which many IRS personnel handle on a daily basis, such as PII and tax information. It also includes other categories, such as procurement (which can include general procurement and acquisition, small business research and technology, and source selection) and system information (which can include critical infrastructure categories like information systems vulnerability information, physical security, and emergency management).

3. For more information about SBU, visit the Sensitive But Unclassified (SBU) Data page in the Disclosure and Privacy Knowledge Base Site and IRM 10.5.1, Privacy and Information Protection, Privacy Policy.

(8) Tax Information. The term tax information refers to a taxpayer’s return and return information protected from unauthorized disclosure under IRC 6103, Confidentiality And Disclosure of Returns and Return Information. The law defines return information as any information the IRS has about a tax return or liability determination. See IRC 6103(b)(2) which defines the term return information.

1. Return information includes, but is not limited to, a taxpayer’s: identity; income, payments, deductions, exemptions, or credits; assets, liabilities, or net worth; and tax liability investigation status (whether the IRS ever investigates or examines the return).

2. Redacting, masking, truncating, or sanitizing tax information does not change its nature. It’s still tax information.

3. Tax information in IRS business processes comes under many names, such as FTI, IRC 6103 protected information, taxpayer data, taxpayer information, tax return information, return information, case information, SBU data, and PII.

4. Tax information is SBU data. IRC 6103 protects tax information from unauthorized disclosure. When tax information relates to an individual, that SBU data is also PII.

5. Release of tax information (whether of an individual or business) is restricted by the confidentiality provisions of IRC 6103(a).

6. For more information about tax information, see IRM 10.5.1, Privacy and Information Protection, Privacy Policy.

Note: Generally, any response provided by the IRS about a tax return is protected information. Confirming the existence of a tax return (whether a return was or was not filed), or confirming the SSN or EIN of a taxpayer, is prohibited - even a Yes/No response is protected information unless the disclosure is authorized by IRC 6103 and the recipient is authorized to receive it.

(9) Safeguarding Personally Identifiable Information Data Extracts (SPIIDE) Automated Data Loss Prevention (DLP) Tool. SPIIDE is a Data Loss Prevention (DLP) tool within the IRS Cybersecurity toolkit.

(10) Business Unit (BU) Data Owner. The BU data owner is the Business Unit who has responsibility for the information and is therefore responsible for containment and mitigation of the data breach, e.g., if a Power of Attorney (POA) tells an SBSE Revenue Officer (RO) she received Income Verification Express Service (IVES) transcripts she did not request, the reporting employee is the RO, but W&I is the data owner and carries the responsibility for mitigation and containment.

(11) Reporting Employee. The reporting employee is the employee who identifies/recognizes a data breach and reports the data breach as required. The reporting employee is responsible for reporting all pertinent information relative to the data breach.

(12) For a full listing of IM terms and their definitions, see Exhibit 10.5.4-1, Glossary of Incident Management Terms, Definitions, and Acronyms.

(1) The table below lists commonly used acronyms and their definitions:

(2) For a full listing of IM terms, definitions, and acronyms, see Exhibit 10.5.4-1, Glossary of Incident Management Terms, Definitions, and Acronyms.

(1) For additional information and guidance concerning incident/data breach reporting, see the following internal resources (for IRS use only):

1. The Disclosure and Privacy Knowledge Base Site

2. The Report Losses, Thefts or Disclosures page in the Disclosure and Privacy Knowledge Base Site

3. The If/Then Guide for Reporting Incidents and Data Breaches which is listed in the Other Related Resources section of the Report Losses, Thefts or Disclosures page in the Disclosure and Privacy Knowledge Base Site

4. Document 13347, Data Breach Response Playbook

5. Document 13347-A, IRS Data Breach Response Plan

6. Document 13056, Shipping Procedures for Personally Identifiable Information (PII)

7. Document 13144, Proper PII Shipping Procedures

(2) OMB Memoranda. OMB Memoranda are available on the Office of Management and Budget page at https://www.whitehouse.gov/omb/information-for-agencies/memoranda/.

1. M-06-15, Safeguarding Personally Identifiable Information, May 22, 2006. This Memorandum was rescinded and replaced by OMB Memorandum M-17-12, Preparing for and Responding to a Breach of Personally Identifiable Information.

2. M-06-16, Protection of Sensitive Agency Information, June 23, 2006. This Memorandum was rescinded by OMB Memorandum M-17-15, Rescission of Memoranda Relating to Identity Management.

3. M-06-19, Reporting Incidents Involving Personally Identifiable Information and Incorporating the Cost for Security in Agency Information Technology Investments, July 12, 2006. This Memorandum was rescinded and replaced by OMB Memorandum M-17-12, Preparing for and Responding to a Breach of Personally Identifiable Information.

4. M-07-16, Safeguarding Against and Responding to the Breach of Personally Identifiable Information, May 22, 2007. This Memorandum was rescinded and replaced by OMB Memorandum M-17-12, Preparing for and Responding to a Breach of Personally Identifiable Information.

5. M-12-18, Managing Government Records Directive, November 28, 2011. This Memorandum was rescinded by OMB Memorandum M-19-21, Transition to Electronic Records.

6. M-16-04, Cybersecurity Strategy and Implementation Plan (CSIP) for the Federal Civilian Government, October 30, 2015. This Memorandum was rescinded by OMB Memorandum M-19-03, Strengthening the Cybersecurity of Federal Agencies by enhancing the High Value Asset Program.

7. M-17-12, Preparing for and Responding to a Breach of Personally Identifiable Information, January 3, 2017. This Memorandum rescinded and replaced OMB Memoranda M-07-16, M-06-19, M-06-15, and Recommendations for Identity Theft Related Data Breach Notification (September 20, 2006).

8. M-19-03, Strengthening the Cybersecurity of Federal Agencies by enhancing the High Value Asset Program, December 10, 2018. This Memorandum consolidated and updated previous requirements from OMB Memorandum M-16-04, Cybersecurity Strategy and Implementation Plan (CSIP) for the Federal Civilian Government, and OMB Memorandum M-17-09, Management of Federal High Value Assets.

9. M-19-21, Transition to Electronic Records, June 28, 2019. This memorandum rescinded OMB Memorandum M-12-18, Managing Government Records Directive.

10. M-23-03, Fiscal Year 2023 Guidance on Federal Information Security and Privacy Management Requirements, December 2, 2022.

11. M-23-07, Update to Transition to Electronic Records, December 23, 2022.

(3) Other Federal Guidance.

1. The Federal Information Security Modernization Act of 2014 (FISMA) (Pub. L. No. 113-283, Title II), December 2014, amended the Federal Information Security Management Act of 2002 (FISMA) to: (1) reestablish the oversight authority of the Director of the Office of Management and Budget (OMB) with respect to agency information security policies and practices, and (2) set forth authority for the Secretary of Homeland Security (DHS) to administer the implementation of such policies and practices for information systems.

2. The President’s Identity Theft Task Force created a strategic plan to combat identity theft. The documents are available on the Federal Trade Commission website under News and Events/Press Releases at https://www.ftc.gov/news-events/press-releases/2007/04/presidents-identity-theft-task-force-releases-comprehensive. See The President’s Identity Theft Task Force Report, Combating Identity Theft: A Strategic Plan, (April 2007), and The President’s Identity Theft Task Force Report, Combating Identity Theft, Volume II: Supplemental Information, (April 2007), both located at https://www.ftc.gov/reports/combating-identity-theft-strategic-plan, and The President’s Identity Theft Task Force Report, September 2008, https://www.ftc.gov/sites/default/files/documents/reports/presidents-identity-theft-task-force-report/081021taskforcereport.pdf.

3. Treasury Directive 85-01, Department of the Treasury Information Technology (IT) Security Program, dated March 10, 2008, https://home.treasury.gov/about/general-information/orders-and-directives/td85-01, authorized the issuance of Treasury Department Publication (TD P) 85-01, Treasury Information Technology Security Program, which contains Department-wide IT security requirements and supporting guidance. Per TD P 85-01, dated December 12, 2017, "The primary purpose of the Treasury IT Security Program is to establish comprehensive, uniform cybersecurity policies and standards for the protection of Departmental assets. The IT Security Program serves as a foundation for the bureaus to use for their cybersecurity programs and in developing supplemental, bureau-specific policies, requirements, and operating directives." See also TD P 85-01 Appendix A, Minimum Standard Parameters for Non-National Security Information and Information Systems.

4. Treasury Directive 25-08, Safeguarding Against and Responding to the Breach of Personally Identifiable Information, dated December 22, 2009, https://home.treasury.gov/about/general-information/orders-and-directives/td25-08, established the Department of the Treasury’s PII protection and breach response and notification policy and plan. This directive also authorized the issuance of a handbook or other guidance to implement this policy.

5. Treasury’s Departmental Incident Response Plan, dated October 10, 2018, established Departmental incident response (IR) procedures. Section 1.4, Authority Establishment, states, "IR procedures for addressing incidents concerning a breach of personally identifiable information (PII) are established in accordance with OMB-M-17-12, Preparing for and Responding to a Breach of Personally Identifiable Information."

(4) IRS IRMs.

1. IRM 10.5.1, Privacy and Information Protection, Privacy Policy

2. IRM 10.5.5, Privacy and Information Protection, Unauthorized Access, Attempted Access or Inspection of Taxpayer Records (UNAX) Program Policy, Guidance and Requirements

3. IRM 1.15, Records and Information Management

4. IRM 11.3, Disclosure of Official Information

5. IRM 10.5.6, Privacy and Information Protection, Privacy Act

6. IRM 1.1.27, Organization and Staffing, Privacy, Governmental Liaison and Disclosure (PGLD)

(5) Publicly available external websites and publications. The publicly available external websites and publications listed in the table below provide general information on identity theft and identity theft-related issues.

(6) Internal IRS intranet links. The internal IRS intranet links listed in the table below provide information on identity theft, identity theft-related issues, and data breaches.

(1) All IRS data breaches involving SBU data, including PII and tax information, and all suspected security incidents, including any incidents of loss or mishandling of IRS information technology resources and lost or stolen IRS IT assets and BYOD assets, must be reported immediately upon discovery.

(2) The timely reporting of all erroneous taxpayer correspondence involving the disclosure of SBU data, including PII and tax information, all inadvertent unauthorized disclosures of SBU data, including PII and tax information, all losses or thefts of hardcopy records or documents containing SBU data, including PII and tax information, and all suspected security incidents, including any incidents of loss or mishandling of IRS information technology resources and lost or stolen IRS IT assets and BYOD assets, is critical for quickly initiating any needed investigation or recovery of information by the BU data owner. A prompt report decreases the possibility the information will be compromised and used to perpetrate identity theft or other forms of harm. See IRM 10.5.4.4.4, PGLD/Incident Management Risk Assessment, and Exhibit 10.5.4-1, Glossary of Incident Management Terms, Definitions, and Acronyms, for additional information about, and examples of, harm/risk of harm. See IRM 10.5.4.1.3, Responsibilities, and the Incident/Data Breach Responsibilities for Reporting Employees and Business Unit (BU) Data Owners page in the Disclosure and Privacy Knowledge Base Site for additional information about the actions BU data owners must take in regard to containing data leakage and mitigating risk, or contact PGLD/IM via the *PII mailbox for additional mitigation guidance and assistance.

(1) Data breaches involving intentional unauthorized disclosures of SBU data, including PII and tax information, must be reported to the Treasury Inspector General for Tax Administration (TIGTA). See IRM 11.3.38.5, Reporting Suspected Willful Unauthorized Accesses or Disclosures, for additional information. See also IRC 7213, Unauthorized Disclosure Of Information, which imposes fines and/or other punishment for the willful unauthorized disclosure of a return or return information.

(1) It is critical to report an incident/data breach as soon as actionable information is available so a response/reaction can be initiated. Incident/data breach updates and any additional notifications to TIGTA and/or Law Enforcement (see (3) and (4) below) can be completed after the initial report to the Office of Privacy, Governmental Liaison and Disclosure/Incident Management Office (PGLD/IM), the Situational Awareness Management Center (SAMC), or the Computer Security Incident Response Center (CSIRC) is submitted.

(2) IRS employees are required to report incidents and data breaches immediately upon discovery to their manager and to one of the following offices based on what was lost, stolen, destroyed, or disclosed:

1. The Office of Privacy, Governmental Liaison and Disclosure (PGLD) Incident Management Office (IM). Report the data breach to PGLD/IM using the PII Breach Reporting Form if the data breach involves: erroneous taxpayer correspondence involving the disclosure of SBU data, including PII and tax information, i.e., a notice, letter, or transcript, which was mailed, emailed, faxed, EEFaxed, or generated or transmitted via the Income Verification Express Service (IVES), Return and Income Verification Services (RAIVS), Transcript Delivery System (TDS), Secure Data Transport (SDT), or other electronic transmission, to the wrong address or addressee; or notices, letters, transcripts, faxes, or other electronic/digital documents sent with mixed entity information such as correct taxpayer information is on page one, but unrelated taxpayer information is on page two; two letters for different taxpayers in the same envelope; the attachment in the correspondence is for a different taxpayer, etc.; or an inadvertent unauthorized disclosure of SBU data, including PII and tax information, such as a verbal disclosure, or an email sent to the wrong person or not properly encrypted; or the loss, theft, or unauthorized destruction of documents containing SBU data, including PII and tax information, such as hardcopy records, documents, or case files, packages lost or stolen during UPS or FedEx shipment, or lost or stolen remittances; or an electronic disclosure of SBU data, including PII and tax information, in IRMs, Training Materials, PowerPoints, IRS Source, SharePoint, etc., or on external systems/sites such as WhatsApp, GitHub, etc.

Note: Call 267-466-0777, or email Incident Management’s *PII mailbox, if you have any problems with the online PII Breach Reporting Form or any questions about completing the online form.

Note: In addition to the reporting requirement to PGLD/IM, data breaches involving disclosures of SBU data, including PII and tax information, in IRMs, must also be reported to the Office of Servicewide Policy, Directives and Electronic Resources (SPDER) via the *SPDER mailbox.

Note: The loss, theft, or unauthorized destruction of official records (whether the records contain PII or not), in hardcopy or electronic format, are also reported via the PII Breach Reporting Form. PGLD/IM reviews all PII Breach Reporting Forms and alerts the Records and Information Management (RIM) Program Office if official records have been reported as lost, stolen, or destroyed on the PII Breach Reporting Form in accordance with IRM 1.15.3.4, Unauthorized Disposition of Records, and 36 CFR 1230, Unlawful or Accidental Removal, Defacing, Alteration, or Destruction of Records. Upon notification of the Records Loss Report from the IM office, the RIM Program office will contact the reporting point of contact to complete Form 15035, Records Loss Reporting. The RIM Program office will then conduct an intake and risk assessment process. See IRM 1.15.3, Records and Information Management, Disposing of Records; visit the Records Management page in the Disclosure and Privacy Knowledge Base Site; or contact the RIM staff at RIM’s *Records Management mailbox for additional information about records.

Note: See (3) and (4) below and the If/then Guide for Reporting Incidents and Data Breaches (PDF) for additional reporting requirements based on what was lost, stolen, destroyed, or disclosed.

2. The Situational Awareness Management Center (SAMC). Report the incident to SAMC (within 30 minutes) using the Incident Reporting Link and selecting the button, Report a New Physical Incident, if the incident involves the loss or theft of Identification (ID) Media, including SmartID cards, Physical Access Control (PAC) cards, Pocket Commissions (credentials), etc., building access cards, building or room keys, legacy ID cards, government property or equipment, or physical security incidents and/or threats. See IRM 10.2.5, Physical Security Program, Identification Media, and IRM 10.2.8, Physical Security Program, Incident Reporting, or visit the Facilities Management and Security Services FMSS Incident Reporting page for additional reporting requirements and to learn more about FMSS and SAMC.

Note: See the If/then Guide for Reporting Incidents and Data Breaches (PDF) to check for additional reporting requirements based on what was lost, stolen, destroyed, or disclosed.

3. The Computer Security Incident Response Center (CSIRC). Report the incident/data breach to CSIRC using the Computer Security Incident Reporting Form, or by calling CSIRC at 240-613-3606, if the incident/data breach involves: the loss or mishandling of IRS information technology resources; or the loss or theft of an IRS IT asset, e.g., an IRS issued computer, laptop, router, printer, cell phone, BlackBerry, or removable storage media (CD/DVD, flash drive, floppy, etc.); or the loss or theft of a non-government furnished/personally owned mobile device that accesses, processes, transmits, or stores IRS information, in support of the Bring Your Own Device (BYOD) program; or an IRS IT asset or BYOD asset lost or stolen during UPS or FedEx shipment.

Note: If the incident/data breach involves the loss or theft of multiple assets, i.e., an IRS IT asset, or BYOD asset, and hardcopy records or documents containing SBU data, including PII and tax information, report the incident/data breach to CSIRC. Do not report it to PGLD/IM.

Note: All suspected security incidents, including any incidents of loss or mishandling of IRS information technology resources and lost or stolen IRS IT assets and BYOD assets, must be reported to CSIRC immediately upon discovery.

(3) The Treasury Inspector General for Tax Administration (TIGTA). Report the incident/data breach to TIGTA by calling 800-366-4484, if the incident/data breach involves: the loss or theft of an IRS IT asset, e.g., an IRS issued computer, laptop, router, printer, cell phone, removable storage media (CD/DVD, flash drive, floppy, etc.); or the loss or theft of a non-IRS IT asset (BYOD device); or an IRS IT asset or BYOD asset lost or stolen during UPS or FedEx shipment; or the loss, theft, or unauthorized destruction of official records (whether the documents contain PII or not); or the loss, theft, or unauthorized destruction of documents containing SBU data, including PII and tax information, such as hardcopy records, documents, or case files, packages lost or stolen during UPS or FedEx shipment, or lost or stolen remittances.

(4) Local Law Enforcement. Report the incident/data breach to your local Law Enforcement authority and file a Police Report if the incident/data breach involves a theft, but do not disclose sensitive data and/or taxpayer data.

(5) Treasury Shared Services Security Operations Center (TSSSOC). The applicable reporting office – either PGLD/IM or CSIRC – will report to the Treasury Computer Security Incident Response Center (TCSIRC) for further submission to TSSSOC as necessary.

1. CSIRC will report incidents to TCSIRC for assessment and reporting to the United States Computer Emergency Readiness Team (US-CERT) as necessary.

2. For data breaches reported to PGLD/IM through the online reporting tool, IM will report to TCSIRC data breaches meeting Treasury’s reporting requirements.

3. The PPC Director in PGLD will coordinate with Treasury when additional reporting may be required to law enforcement, oversight entities, or Congress.

(6) Visit the Report Losses, Thefts or Disclosures page in the Disclosure and Privacy Knowledge Base Site and see the If/Then Guide for Reporting Incidents and Data Breaches (PDF) listed in the Other Related Resources section for additional information and guidance. If you are a Flexiplace (Telework) employee (Frequent, Recurring or Ad Hoc) or a Mobile employee, print a copy of the If/Then Guide for the office and one to keep at home in case your IRS IT asset or BYOD asset is lost or stolen, and you can’t access IRS Source.

(1) Inadvertent accesses of taxpayer information are reported on the hard copy Form 11377, Taxpayer Data Access, or the fillable Form 11377-E, Taxpayer Data Access.

(2) Form 11377 or Form 11377-E may be used by employees Servicewide to document accesses to taxpayer return information when the accesses are not supported by direct case assignment, were performed in error (inadvertent access), or when the access may raise a suspicion of an unauthorized access.

(3) Some examples of an inadvertent access include accidentally entering an incorrect Taxpayer Identification Number or unintentionally retrieving other taxpayer information while working an assigned case. Inadvertent accesses are not reported to PGLD/IM or CSIRC.

(4) Employees who complete either the online or printed version of this form are required to sign and date the IRS and Employee copies and give both to their managers no later than the end of the workday that the accesses occurred. The manager will review the form, sign and date both copies and return the Employee Copy to the employee. Employees are encouraged to retain their copy for six years.

(1) The following are examples of situations which require no reporting to PGLD/IM as they are not considered erroneous taxpayer correspondence or unauthorized disclosures:

1. An IRS employee follows all procedures to verify the identity of a caller before disclosing any information, only to later find that he or she is not talking to the taxpayer or the taxpayer’s authorized representative. The employee terminates the call at that point without disclosing any further information.

2. An IRS employee faxes return information as requested by a taxpayer or authorized representative. The employee follows all established procedures for faxing SBU data, including PII and tax information, only to later find that the fax number provided by the taxpayer or authorized representative was incorrect.

3. An IRS employee follows all established procedures for locating a potential new address for a taxpayer, and a letter is generated to that address in an attempt to contact the taxpayer. A person who receives the correspondence at that address contacts the IRS to say the individual does not live there.

4. The IRS sends correspondence to the last known address of a taxpayer. A person who receives the correspondence at that address contacts the IRS to say the individual does not live there.

5. An IRS employee follows procedures in IRM 21.1.3.12, Suicide Threats, to disclose a taxpayer's name, address/location, and/or telephone number to Law Enforcement because the taxpayer threatened suicide and/or threatened harm to another individual. In this situation, the disclosure of this information is not prohibited by law; therefore, although the Suicide Threat must be reported to Disclosure, TIGTA, SAMC, and the Office of Employee Protection, no reporting to PGLD/IM is necessary unless directed to do so by Disclosure. See IRM 21.1.3.12, Suicide Threats, IRM 10.2.8, Physical Security Program, Incident Reporting, IRM 11.3.34.3, Expedited Procedures in Emergency Situations, and the Governmental Liaison, Disclosure and Safeguards (GLDS) Unique Situations page for the procedures to follow when a taxpayer threatens suicide or when it is appropriate to contact the local Law Enforcement authority versus federal or State Law Enforcement authorities.

Note: Visit the Report Losses, Thefts or Disclosures page in the Disclosure and Privacy Knowledge Base Site and see the No Reporting Situations (PDF) listed in the Other Related Resources section for additional information and guidance.

(1) When an IRS data breach or incident occurs, depending on what was lost, stolen, destroyed, or disclosed, employees report the data breach or incident to PGLD/IM via the PII Breach Reporting Form, to CSIRC via the Computer Security Incident Reporting Form, or to SAMC via SAMC’s Incident Reporting Link.

1. A data breach is reported to PGLD/IM via PGLD’s PII Breach Reporting Form if the data breach involves erroneous taxpayer correspondence involving the disclosure of SBU data, including PII and tax information, i.e., a notice, letter, or transcript, which was mailed, emailed, faxed, EEFaxed, or generated or transmitted via IVES, RAIVS, TDS, SDT, or other electronic transmission, to the wrong address or addressee; or notices, letters, transcripts, faxes, or other electronic/digital documents sent with mixed entity information such as correct taxpayer information is on page one, but unrelated taxpayer information is on page two; two letters for different taxpayers in the same envelope; the attachment in the correspondence is for a different taxpayer, etc.; or an inadvertent unauthorized disclosure of SBU data, including PII and tax information, such as a verbal disclosure, or an email sent to the wrong person or not properly encrypted; or the loss, theft, or unauthorized destruction of documents containing SBU data, including PII and tax information, such as hardcopy records, documents, or case files, packages lost or stolen during UPS or FedEx shipment, or lost or stolen remittances; or an electronic disclosure of SBU data, including PII and tax information, in IRMs, Training Materials, PowerPoints, IRS Source, SharePoint, etc., or on external systems/sites such as WhatsApp, GitHub, etc.

   Note: The PII Breach Reporting Form is a web-based online reporting form that uploads directly to e-Trak.

Note: Form 14164, Personally Identifiable Information (PII) Analysis, is auto-populated through e-Trak based on the information the reporting employee enters on the e-Trak online breach reporting form (PII Breach Reporting Form). Form 14164 is generated for informational purposes to provide reporting employees with a summary of their responses from the e-Trak online breach reporting form for their records. Form 14164 is viewable from the Publishing Catalog, but it is not fillable.

2. An incident/data breach is reported to CSIRC via CSIRC’s Computer Security Incident Reporting Formif the incident/data breach involves the loss or mishandling of IRS information technology resources, or the loss or theft of an IRS IT asset or an asset in the Bring Your Own Device (BYOD) program, or an IRS IT asset or BYOD asset lost or stolen during UPS or FedEx shipment, or if it involves multiple assets, i.e., an IRS IT asset or BYOD asset and hardcopy records or documents containing SBU data, including PII and tax information. Note that the form and instructions for incidents/data breaches involving IT assets are different from the forms and instructions for all other data breaches.

3. An incident is reported to SAMC via SAMC’s Incident Reporting Link if the incident involves the loss or theft of ID media, including SmartID cards, PAC cards, Pocket Commissions (credentials), etc., building access cards, building or room keys, legacy ID cards, government property or equipment, or physical security incidents and/or threats. Note the reporting requirement time frame for SAMC is within 30 minutes of discovery.

(2) After a data breach is reported, PGLD/IM receives notification via email (delivered to the *PII mailbox) from either CSIRC or e-Trak. The email contains the information necessary to conduct a risk assessment and to determine if the data breach meets high-risk data breach criteria.

1. The *PII mailbox is a centralized communication tool used by PGLD/IM to send and receive all communications throughout the data breach intake process. Data breach summaries with a brief description of the data breach are automatically sent via email to the *PII mailbox whenever data breaches are reported to CSIRC via the Computer Security Incident Reporting Form or to PGLD/IM via the PII Breach Reporting Form.

   Note: Incident Management Intake may also include events received from SPIIDE for investigation.

(3) After PGLD/IM reviews the information submitted and performs an initial assessment of the data breach, if SBU data, including PII and tax information, is involved, PGLD/IM will, if necessary, request additional information to fully assess the data breach to complete the risk assessment. If the data breach is input through the e-Trak online breach reporting form (PII Breach Reporting Form) and the employee indicated an SSN or EIN was disclosed, the reporting employee and the employee’s manager will receive an Impacted Individuals and/or Business Excel Spreadsheet as an attachment to the email received from e-Trak. If the data breach is input through other than the e-Trak online reporting form, PGLD/IM will send an Impacted Individuals Excel Spreadsheet to the reporting employee and the employee’s manager if an SSN is needed for notification. The reporting employee is responsible for providing the complete, unredacted tax identification numbers (SSNs/EINs) of the potentially impacted individuals and/or businesses and emailing the spreadsheet via secure email to the *PII mailbox within two business days of receipt.

1. The PGLD/IM and CSIRC Breach/Incident Reporting Forms provide an inventory of possible compromised data elements, the source of the data, whether the data was encrypted, and any other special factors that need to be considered, such as data being used in a criminal or grand jury investigation.

2. The Impacted Individuals and/or Business Excel Spreadsheet provides an inventory of the names and TINs of all the individuals potentially impacted by the data breach.

(1) A high-risk data breach includes any data breach that meets the OMB definition of a major incident or includes any special circumstances requiring an enhanced response because of significant risk to:

1. Customers: Affects a significant number of individuals or high-profile individuals;

2. Business Results: Overwhelming increase of phone traffic, reduced taxpayer access to IRS systems or online applications, negative affect on revenue protection; or,

3. IRS Reputation: Potential for extensive media involvement, congressional interest, or negative exposure.

(2) High-risk data breaches may be identified through several different channels. For example:

1. Cybersecurity may identify a potential breach of an IRS system or application.

2. PGLD or another BU may identify a loss, theft, or disclosure of SBU data, including PII and tax information, with unusual circumstances.

3. A third-party data owner may identify a breach of SBU data, including PII and tax information.

   Note: A third-party data owner is defined as a data owner external to the IRS. An external third-party data breach is an event that results from the unauthorized use or loss of SBU data (including PII and tax information) that does not involve IRS systems, applications, or online services. Third-party data breaches can be reported to the IRS by external sources, such as practitioners, software developers, state and local agencies, or others.

(3) BU data owners will:

1. Notify PGLD and IRS senior management as needed.

2. Take immediate action to contain potential data leakage and mitigate risk, such as engaging Cybersecurity’s Online Fraud Detection and Prevention (OFDP) Office to deactivate a fraudulent website; recovering hardcopy documents; or coordinating with TIGTA to ensure all recovery options are considered.

(4) PGLD will:

1. Identify members needed for a Breach Response Team (BRT) or Working Group (WG).

2. Notify the Department of Treasury as applicable.

(5) A Breach Response Team (BRT) will be convened for high-risk data breaches and for any data breach that constitutes a major incident (as defined in OMB guidance) to address the additional concerns and communication issues that may be involved with these types of data breaches. The purpose of the BRT is to provide a swift, effective and orderly response to these types of data breaches. The team is led by the Breach Coordinator (BC) and is composed of cross-functional representatives authorized to take the necessary steps to contain, mitigate or rectify a data breach, mitigate the vulnerability of taxpayer data, and rebuild trust. Participating members of the BRT can vary based on the nature and scope of the data breach and the potential risk to taxpayers.

(6) A Working Group (WG) is comprised of members from several different components of a BRT to address the specifics of an investigation prior to the formation of a full BRT. WGs are commonly formed for investigations into suspicious behavior on IRS systems and applications.

(7) PGLD/IM reports high-risk data breaches to the Facilities Management and Security Services (FMSS) Threat and Incident Response Center (TIRC). The TIRC is comprised of staff from FMSS, the Treasury Inspector General for Tax Administration-Criminal Intelligence and Counterterrorism Group (TIGTA-CICT), Criminal Investigation (CI), Federal Protective Service (FPS), the Computer Security Incident Response Center (CSIRC), and the Office of Privacy, Governmental Liaison and Disclosure (PGLD), including the Records and Information Management (RIM) Program Office. The mission of the TIRC is to identify and mitigate threats and record countermeasures and mitigation strategies as it pertains to Federal tax administration and the IRS for the protection of service operations. Reporting to SAMC may also be required if the reporting does not lead to SAMC Leadership messaging and communication is warranted based on the circumstances of the event.

(8) See the following resources regarding high-risk data breaches. Both are listed in the Other Related Resources section of the Report Losses, Thefts or Disclosures page in the Disclosure and Privacy Knowledge Base Site.

1. The High-Risk Data Breach Quick Reference Guide contains the high-level process to follow when a high-risk data breach is identified.

2. Document 13347, Data Breach Response Playbook, contains detailed procedures on the proper steps to take if your area has a high-risk data breach to help you minimize harm to taxpayers, document the data breach, and manage the risk assessment process.

(1) FISMA 2014 requires OMB to define the term "major incident" and directs agencies to report major incidents to Congress within 7 days of identification.

(2) A "major incident," as defined by OMB Memorandum M-23-03, Fiscal Year 2023 Guidance on Federal Information Security and Privacy Management Requirements, https://www.whitehouse.gov/wp-content/uploads/2022/12/M-23-03-FY23-FISMA-Guidance-2.pdf, is "any incident that is likely to result in demonstrable harm to the national security interests, foreign relations, or the economy of the United States, or to the public confidence, civil liberties, or public health and safety of the American people."

(3) A data breach constitutes a "major incident" when it involves PII that, if exfiltrated, modified, deleted, or otherwise compromised, is likely to result in demonstrable harm to the national security interests, foreign relations, or economy of the United States, or to the public confidence, civil liberties, or public health and safety of the American people. An unauthorized modification of, unauthorized deletion of, unauthorized exfiltration of, or unauthorized access to 100,000 or more individuals' PII constitutes a major incident.

(4) PGLD/IM coordinates with Treasury for the appropriate actions and reporting, including reporting to Congress, whenever a data breach is identified as an OMB major incident.

(1) PGLD/IM assesses the risk of harm to individuals potentially impacted by data breaches involving the loss, theft, or inadvertent unauthorized disclosure of SBU data, including PII and tax information. When assessing the risk of harm to individuals potentially impacted by a data breach, the potential harms that could result from the loss or compromise of PII must be considered. Such harms may include the effect of a breach of confidentiality or fiduciary responsibility, the potential for blackmail, the disclosure of private facts, mental pain and emotional distress, financial harm, the disclosure of contact information for victims of abuse, the potential for secondary uses of the information which could result in fear or uncertainty, or the unwarranted exposure leading to humiliation or loss of self-esteem. Additionally, the Privacy Act requires the IRS to protect against any anticipated threats or hazards to the security or integrity of records which could result in substantial harm, embarrassment, inconvenience, or unfairness to any individual on whom information is maintained. The IRS must consider any and all risks relevant to the data breach, which may include risks to the IRS, IRS information systems, IRS programs and operations, other Treasury Bureaus, the Federal Government, or national security. These additional risks may properly influence the IRS’ overall response to a data breach and the steps the IRS must take to notify individuals. Note that all data breaches are unique and when making determinations, all facts and circumstances must be considered.

(2) PGLD/IM performs a risk assessment to evaluate the likely risk of harm for all reported IRS data breaches, based on standardized factors and ratings criteria. The result of the assessment is a categorization of the data breach into one of four levels - No Impact; Low Impact; Moderate Impact; and High Impact. Categorization into levels dictates a recommended level of response and determines when, what, how, and to whom notification of a data breach must be given.

(3) PGLD/IM uses the following three-step methodology to assess the risk of harm for all reported IRS data breaches:

1. Step 1: Examine key factors. Each of the three factors identified by OMB Memorandum M-17-12 (the nature and sensitivity of the PII potentially compromised by the data breach; the likelihood of access and use of the PII potentially compromised by the data breach; and the type of data breach) is assessed in relation to the specific data breach to determine the potential likelihood of harm to individuals. See (4) below for additional information on the risk assessment factors.

2. Step 2: Determine risk factor ratings. Each of the three factors is rated based on its impact level (high, moderate, low, or no impact) with corresponding points from 3 to 0 assigned to each impact level.

3. Step 3: Categorize or classify the data breach. Based on the total factor rating points the data breach is categorized into one of four levels. Data breaches with a total factor rating point between 8 and 9 are considered Level Three (High Impact). Potentially impacted individuals involved in a data breach categorized as Level Three (High Impact) will be sent a data breach notification letter.

(4) PGLD/IM considers the following key factors and considerations when conducting a risk assessment to determine the potential likelihood of harm to potentially impacted individuals. Identifying the data elements involved in the data breach, i.e., the PII that was lost, stolen, or disclosed, and assessing the impact of the data breach are key elements that must be considered when determining if, when, and how notification will be provided to potentially impacted individuals.

1. Nature and Sensitivity of the PII. The nature and sensitivity of the PII potentially compromised by the data breach, including the potential harms that an individual could experience from the loss or compromise of the type of PII. At a minimum, the following items are considered when assessing the nature and sensitivity of the PII potentially compromised by a data breach: Data Elements, including an analysis of the sensitivity of each individual data element as well as the sensitivity of all the data elements together; Context, including the purpose for which the PII was collected, maintained, and used; Private Information, including the extent to which the PII, in a given context, may reveal particularly private information about an individual or constitutes information that an individual would generally keep private; Vulnerable Populations, including the extent to which the PII identifies or disproportionately impacts a particularly vulnerable population; and Permanence, including the continued relevance and utility of the PII over time and whether the information is easily replaced or substituted or will permanently identify an individual.

2. Likelihood of Access and use of the PII. The likelihood of access and use of the PII potentially compromised by the data breach, including whether the PII was properly encrypted, or rendered partially or completely inaccessible by other means. The following items are considered when assessing the likelihood of access and use of PII potentially compromised by a data breach: Security Safeguards, including whether the PII was properly encrypted, or rendered partially or completely inaccessible by other means; Format and Media, including whether the format of the PII or the media on which it is maintained may make it difficult and resource-intensive to use; Duration of Exposure, including how long the PII was exposed; and Evidence of Misuse, including any evidence confirming that the PII is being misused, or that it was never accessed.

3. Type of Data Breach. The type of data breach, including the circumstances of the data breach, as well as the actors involved and their intent. The following items are considered when determining the type of data breach: Intent, including whether the PII was compromised intentionally, unintentionally, or whether the intent is unknown; and Recipient, including whether the PII was disclosed to a known or unknown recipient, and the trustworthiness of a known recipient.

(5) After assessing the risk of harm to individuals potentially impacted by a data breach, PGLD/IM will determine how to best mitigate the identified risks. Because each data breach is fact-specific, the decision of whether to take countermeasures, offer guidance, or provide services to potentially impacted individuals will depend on the circumstances of the data breach. Actions the IRS can take to limit, reduce, or mitigate the risk of harm to potentially impacted individuals include:

• Countermeasures, such as placing markers on the accounts (e.g., identity theft markers and/or IRS Data Breach Tracking Indicator), ensuring the individuals are aware of the availability of the Identity Protection Personal Identification Number (IP PIN) for filing tax returns, or using database filters;

• Guidance, such as providing individuals with information on how they may obtain a free credit report, how they may set up a fraud alert or place a credit freeze, and whether they should consider changing or closing certain accounts; and

• Services, such as offering identity protection/identity monitoring or an IP PIN.

(6) After IM has completed its risk analysis of a data breach and developed a recommendation regarding the appropriate response, data breaches categorized as "High Impact" are included in a Code Red Recommendations Report and presented to the Incident Management Associate Director for review.

(7) If the recommendation is to notify, then potentially impacted individuals are notified of the data breach via Letter 4281C, IM Breach Notification Letter.

(1) The PII Working Group (PIIWG) consists of senior management and technical experts from all key business and functional unit stakeholders with expertise in information technology, legal requirements, privacy, law enforcement and information security. A Code Red Recommendations Report is presented to the PIIWG weekly by PGLD/IM for information only; no concurrence or approval by the PIIWG is required.

(2) The Privacy Policy and Compliance Advisory Committee (PPCAC) no longer exists. It was a committee comprised of executives from all key business and functional unit stakeholders. It was originally established to oversee the Identity Protection Program and Incident Management Program activities, specifically the development of Servicewide identity theft and data breach policies and procedures, development and execution of Identity Protection and Incident Management Program office procedures, and the study and execution of identity theft outreach, victim assistance and prevention initiatives.

(1) The IRS, through PGLD/IM, will notify potentially impacted individuals if one of the following conditions occurs:

1. The evaluation of an IRS data breach results in a likelihood of harm to the potentially impacted individuals. See IRM 10.5.4.4.4, PGLD/Incident Management Risk Assessment, and Exhibit 10.5.4-1, Glossary of Incident Management Terms, Definitions, and Acronyms, for additional information about, and examples of, harm/risk of harm.

2. Personal information was intentionally accessed or disclosed without authorization if the access or disclosure results in an administrative proposal of disciplinary or adverse action against an IRS employee but not criminal indictment.

(2) The IRS, through PGLD/IM, will notify potentially impacted individuals of an IRS data breach, or an intentional unauthorized access or disclosure resulting in proposed disciplinary or adverse action against an employee, via Letter 4281C, IM Breach Notification Letter.

(3) The IRS, through PGLD/IM, will identify potentially impacted individuals of an IRS data breach who have been sent Letter 4281C by marking each entity (on CC ENMOD and/or CC IMFOLE) with the IRS data breach indicator TC 971 AC 505 (only if the account is on the Master File (MF)). 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, Civil Damages For Unauthorized Inspection Or Disclosure Of Returns And Return Information, then no TC 971 AC 505 will be input. See IRM 10.5.4.5.1.1, Applying the IRS Data Breach Tracking Indicator to IRS Data Breaches, for additional information.

(4) The objectives of communications in the event of a possible compromise of SBU data, including PII and tax information, within the IRS are as follows:

1. To comply with OMB and Treasury Department directives which mandate notification to potentially impacted individuals if there is a potential risk that the compromised data may be used by someone other than the owner of the information to commit a crime or fraud.

2. To comply with IRC 7431 when there is an unauthorized access or disclosure resulting in an administrative proposal of disciplinary or adverse action against an employee.

3. To minimize the possible negative impact of the compromised data on the taxpayer/victim.

4. To ensure the IRS' relationship with the impacted individual(s) will not be so damaged as a result of the data breach that it negatively impacts his or her tax filing and paying obligations.

(1) Based on the circumstances of the data breach, the IRS will provide ongoing support to potentially impacted individuals. This post-notification assistance and support may include, but is not limited to, the following:

1. A dedicated toll-free telephone number staffed by trained IRS personnel to respond to general data breach-related inquiries

2. Information on websites and other resources providing information about identity theft prevention and protection

3. Coordination with Business Units on IRS data breaches that affect an individual's tax account, such as phishing schemes

(2) The PGLD/Incident Management Program is supported by Wage and Investment's (W&I) Accounts Management (AM). AM Customer Service Representatives (CSRs) support PGLD/IM by assisting individuals who call the Privacy and Information Protection (PIP) toll-free telephone number (866-225-2009) provided in Letter 4281C, IM Breach Notification Letter. AM CSRs are trained to respond to IRS data breach questions and questions about Letter 4281C.

(1) IM will adhere to all document retention schedules in accordance with IRM 1.15, Records and Information Management. This applies to all materials in electronic or hard copy format created in response to an IRS data breach.

(1) PGLD developed an IRS data breach tracking indicator to centrally track IRS data breaches.

(2) The IRS data breach tracking indicator was implemented by PGLD to identify individuals whose PII was lost, stolen, or disclosed as a result of an IRS data breach and the data breach risk assessment results in a likelihood of harm to the potentially impacted individuals.

(3) The IRS data breach tracking indicator is input as a Transaction Code (TC) 971 with Action Code (AC) 505. The TC 971 AC 505 is displayed on the Integrated Data Retrieval System (IDRS) on the entity portion of each impacted individual's account (CC ENMOD and CC IMFOLE).