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US Treasury Terminates Booz Allen Contracts
(MENAFN) The US Treasury has ended all contracts with consulting firm Booz Allen Hamilton following the conviction of a former contractor for leaking confidential tax information, including records related to President Donald Trump, as stated by reports.
The department announced on Monday that 31 active contracts valued at approximately $21 million would be canceled. The decision follows a data breach carried out by Charles Edward Littlejohn, a former Internal Revenue Service (IRS) contractor working for Booz Allen Hamilton between 2018 and 2020.
Littlejohn was sentenced in 2024 to five years in prison after admitting to sharing tax records with news outlets. Some of these documents later reached media organizations, including the New York Times, which published stories based on the leaked records in 2020 and 2021.
Prosecutors described the leaks as “unparalleled in the IRS’s history,” affecting around 406,000 taxpayers over a span of more than 15 years. The exposed information included tax returns, investment holdings, stock trades, and other financial details. While several high-profile billionaires were impacted, ordinary taxpayers connected to certain investment entities were also affected.
Treasury Secretary Scott Bessent criticized Booz Allen for insufficient safeguards, saying, “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 responded that it does not store taxpayer data on its own systems and cannot monitor government networks. A company spokesperson told CNN that it has consistently condemned Littlejohn’s actions and maintains a zero-tolerance policy for legal violations. The firm continues to hold contracts with other federal agencies, including the Defense Department, Homeland Security, and intelligence services.
The Treasury’s action comes as the 2026 US tax filing season begins, amid renewed scrutiny of IRS privacy practices following the breach and subsequent federal data access requests, including those from Elon Musk’s now-defunct Department of Government Efficiency (DOGE).
The department announced on Monday that 31 active contracts valued at approximately $21 million would be canceled. The decision follows a data breach carried out by Charles Edward Littlejohn, a former Internal Revenue Service (IRS) contractor working for Booz Allen Hamilton between 2018 and 2020.
Littlejohn was sentenced in 2024 to five years in prison after admitting to sharing tax records with news outlets. Some of these documents later reached media organizations, including the New York Times, which published stories based on the leaked records in 2020 and 2021.
Prosecutors described the leaks as “unparalleled in the IRS’s history,” affecting around 406,000 taxpayers over a span of more than 15 years. The exposed information included tax returns, investment holdings, stock trades, and other financial details. While several high-profile billionaires were impacted, ordinary taxpayers connected to certain investment entities were also affected.
Treasury Secretary Scott Bessent criticized Booz Allen for insufficient safeguards, saying, “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 responded that it does not store taxpayer data on its own systems and cannot monitor government networks. A company spokesperson told CNN that it has consistently condemned Littlejohn’s actions and maintains a zero-tolerance policy for legal violations. The firm continues to hold contracts with other federal agencies, including the Defense Department, Homeland Security, and intelligence services.
The Treasury’s action comes as the 2026 US tax filing season begins, amid renewed scrutiny of IRS privacy practices following the breach and subsequent federal data access requests, including those from Elon Musk’s now-defunct Department of Government Efficiency (DOGE).
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