Two piece tack rivets and method of forming holes for permanent fasteners. The tack rivets have a stem with a head on one end and a grooved region adjacent the other end, and a locking collar for fitting over the grooved region of the stem for deforming into the grooved region of the stem on applying a setting force between the locking collar and the stem. The head includes cutouts formed therein. The cutouts prevent the head from forming large chips or strips when drilled.