Treasury Terminates $21 Million in Contracts with Booz Allen Hamilton Following IRS Data Leak

The Treasury Department has terminated 31 contracts with Booz Allen Hamilton, totaling $21 million. This significant action follows the leak of confidential IRS information by a former contractor of the firm, which revealed details about wealthy Americans' tax payments.

Secretary Bessent Cites Insufficient Safeguards

Treasury Secretary Scott Bessent stated that canceling these contracts is a necessary step to enhance public trust in government.

Bessent indicated that Booz Allen did not implement sufficient safeguards to protect sensitive data, including taxpayer information accessible through its IRS contracts.

The company's stock experienced a decline of over 7% after the announcement.

Leak Exposed High-Net-Worth Individuals' Tax Details

The leaked information formed the basis of reports by The New York Times and ProPublica. These reports detailed how high-net-worth individuals, including Donald Trump, Elon Musk, and Jeff Bezos, managed their tax obligations.

Charles Edward Littlejohn, a former Booz Allen contractor, pleaded guilty in 2023 to charges related to leaking confidential data to reporters. He received a five-year prison sentence.

Booz Allen Expresses Surprise, Defends Practices

Booz Allen Hamilton expressed surprise regarding the Treasury Department's decision. The company stated its policy of zero tolerance for legal violations and adherence to ethical guidelines.

It also noted that Littlejohn's criminal conduct occurred on government systems, not Booz Allen systems. The company further clarified that it does not store taxpayer data nor monitor government networks. Booz Allen stated that it cooperated with the government's investigation into Littlejohn, assisting in his prosecution.