Feds yank contracts with Booz Allen Hamilton after Trump tax leak

The Department of the Treasury said Monday that it is canceling all contracts with Booz Allen Hamilton after a former contractor who worked for the consulting firm leaked tax information belonging to thousands of people, including President Trump. 

In 2024, former IRS contractor Charles Edward Littlejohn of Washington, D.C. — who worked for Booz Allen Hamilton — was sentenced to five years in prison after pleading guilty to leaking tax information about Mr. Trump and others to news outlets.

Littlejohn gave data to The New York Times and ProPublica between 2018 and 2020 in leaks that appeared to be "unparalleled in the IRS's history," prosecutors said.

The Treasury Department said in a new release on Monday that the tax return leak affected roughly 406,000 people, citing IRS data. The agency did not note Littlejohn's release of Mr. Trump's tax info. 

"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," Treasury Secretary Scott Bessent said in a statement. "Booz Allen failed to implement adequate safeguards to protect sensitive data, including the confidential taxpayer information it had access to through its contracts with the Internal Revenue Service."

A representative from Booz Allen Hamilton was not immediately available for comment.

In court documents, prosecutors said Littlejohn had applied to work as a contractor specifically to get Mr. Trump's tax returns and figured out how to search and extract tax data to avoid triggering suspicions internally.

"I made my decision with full knowledge that I would likely end up in a courtroom to answer for my serious crime," Littlejohn said at the time of his sentencing in January of 2024. "I used my skills to systematically violate the privacy of thousands of people."

Treasury says the agency has 31 contracts with Booz Allen Hamilton totaling $4.8 million in annual spending and $21 million in total obligations.