Treasury Department cancels contracts with consulting firm Booz Allen Hamilton after Trump tax return leak

"By early afternoon, the move sent the consulting firm's stock down more than 11%. The department has 31 different contracts with the firm, worth $4.8 million in yearly spending and $21 million in obligations, it said in a press release. The press release noted that Charles Edward Littlejohn, a former employee at the consulting firm, leaked the tax returns of thousands of taxpayers. The leak affected roughly 406,000 people, according to the IRS."

"A company spokesperson said in a statement that it has "consistently condemned in the strongest possible terms" Littlejohn's actions, and has "zero tolerance" for breaking the law. "When Littlejohn's criminal conduct occurred over 5 years ago, it was on government systems, not Booz Allen systems. Booz Allen stores no taxpayer data on its systems and has no ability to monitor activity on government networks,""

Treasury Secretary Scott Bessent said the Treasury Department cut contracts with Booz Allen Hamilton following a breach linked to a former employee. The department reported 31 contracts with the firm, totaling $4.8 million in annual spending and $21 million in obligations. The leaked material included tax returns of thousands of taxpayers and affected roughly 406,000 people, according to the IRS. Booz Allen condemned the employee's actions and said it stores no taxpayer data on its systems, asserting the misconduct occurred on government systems over five years ago. The employee, Charles Edward Littlejohn, pleaded guilty in 2023 and was later sentenced to five years in prison.

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