Treasury Ends $21M in Contracts Over IRS Tax Docs Leaker

Treasury Secretary Scott Bessent announced the cancellation of all contracts with consulting firm Booz Allen Hamilton following the conviction of a leaker of Internal Revenue Service tax documents during the first Trump administration.

Bessent announced the termination of 31 active contracts with Booz Allen Hamilton, totaling $4.8 million in annual spending and about $21 million in total obligations, citing failures to safeguard sensitive taxpayer data.

"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," Bessent wrote 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."

The decision follows the high-profile tax data breach carried out by former Booz Allen employee Charles Edward Littlejohn, who between 2018 and 2020 stole and leaked confidential tax return information belonging to hundreds of thousands of Americans.

The IRS determined that approximately 406,000 taxpayers were affected.

Littlejohn has pleaded guilty to felony charges related to the unauthorized disclosure of federal tax information and is awaiting sentencing.

Newsmax's Eric Mack contributed to this report.

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