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3d ago

Treasury Cancels All Booz Allen Contracts Over IRS Tax Leak

The termination cites a breach by ex-contractor Charles Littlejohn that the IRS says exposed about 406,000 taxpayers.

FILE - A sign is displayed outside the Internal Revenue Service building May 4, 2021, in Washington. (AP Photo/Patrick Semansky, File)
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Overview

  • Treasury ended 31 agreements with Booz Allen, covering about $4.8 million in annual spending and roughly $21 million in total obligations.
  • Treasury Secretary Scott Bessent said the move supports a push to "root out waste, fraud, and abuse" after finding inadequate safeguards for confidential IRS data.
  • Former Booz contractor Charles Edward Littlejohn pleaded guilty to leaking returns, including President Trump’s, to The New York Times and ProPublica and is serving a five-year sentence.
  • The IRS estimates the breach spanned 2018 to 2020 and affected approximately 406,000 taxpayers.
  • Booz Allen said the conduct occurred on government systems, noted it stores no taxpayer data and cooperated with investigators, as its shares fell roughly 8% to more than 10% after the news.