In a recent data breach case, former IRS contractor Charles Littlejohn pled guilty to stealing tax information from several high-profile investors. He was sentenced to five years in prison after disclosing sensitive tax returns to news media outlets. As part of the response, the IRS has begun sending notification letters to those possibly affected by the breach, in line with the requirements of the Internal Revenue Code. Fenway Enterprises Investors LLC received a Letter 6613-A from the IRS informing them of the exposure and advising caution for its investors.
The IRS notification revealed that Mr. Littlejohn was charged with unauthorized inspection and disclosure of tax return information from 2018 to 2020. Fenway Enterprises’ annual partnership tax returns, including Form 1065 and K-1 copies, contain personal information such as names, addresses, and Social Security or Employer Identification numbers, potentially placing its investors’ data at risk. Although the IRS notice did not specifically state whether Fenway’s investor data was compromised, the company issued warnings out of caution.
Fenway Enterprises, taking proactive measures, alerted its investors about the possible exposure and potential risk to their personally identifiable information. The company expressed concerns regarding the unauthorized disclosure of private tax information, although no confirmed data leak has been reported to the firm. Investors were advised to remain vigilant in case their personal information had been accessed or disclosed.
Additionally, Fenway noted that the IRS has continued to notify individuals whose data might have been affected, including those associated with K-1 forms. While the company has not received confirmation of a broader disclosure, it is aware that the IRS is actively contacting other potentially impacted taxpayers to ensure they are informed of any possible breach of their tax identification information.
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