ByKelly Phillips Erb,
Forbes Staff.
The Treasury Department announced it is canceling all contracts with Booz Allen Hamilton (often simply called Booz Allen) for failing to protect sensitive taxpayer information. Treasury cited the massive IRS data breach carried out by former Booz Allen employee Charles Edward Littlejohn. The department said it is terminating 31 contracts, totaling about $4.8 million in annual spending and roughly $21 million in total obligations.
Treasury Secretary Scott Bessent framed the move as part of the administration’s effort to root out waste, fraud, and abuse and to restore public trust in government, saying Booz Allen failed to implement adequate safeguards for confidential taxpayer data accessed through IRS work.
The breach referenced by Treasury is considered among the most serious in U.S. history. Littlejohn, a former IRS contractor employed by Booz Allen, stole and disclosed tax returns and return information, including Donald Trump’s, between 2018 and 2020. According to prosecutors, Littlejohn viewed Trump as “dangerous and a threat to democracy” and intended to release private tax information to the public.
