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Politics

US Treasury Division ends contracts with agency after Trump tax leak

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Last updated: January 27, 2026 10:21 am
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US Treasury Division ends contracts with agency after Trump tax leak
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By FATIMA HUSSEIN

WASHINGTON (AP) — The U.S. Treasury Division has lower its contracts with Booz Allen Hamilton, after a former contractor who labored for the agency was charged and subsequently imprisoned for leaking tax info to information shops about 1000’s of the nation’s wealthiest individuals, together with President Donald Trump.

The most recent transfer is consistent with Trump administration efforts to precise retribution on perceived enemies of the president and his allies.

In 2024, former IRS contractor Charles Edward Littlejohn of Washington, D.C. — who labored for Booz Allen Hamilton — was sentenced to 5 years in jail after pleading responsible to leaking tax details about Trump and others to information shops.

Littlejohn gave information to The New York Instances and ProPublica between 2018 and 2020 in leaks that gave the impression to be “unparalleled within the IRS’s historical past,” prosecutors mentioned.

In court docket paperwork, prosecutors mentioned Littlejohn had utilized to work as a contractor to get Trump’s tax returns and thoroughly discovered easy methods to search and extract tax information to keep away from triggering suspicions internally.

Treasury says the company has 31 contracts with Booz Allen Hamilton totaling $4.8 million in annual spending and $21 million in complete obligations.

Treasury Secretary Scott Bessent mentioned in assertion that the agency “did not implement enough safeguards to guard delicate information, together with the confidential taxpayer info it had entry to by its contracts with the Inside Income Service.”

Brian P. Hale, a Booz Allen spokesperson, mentioned the agency has persistently condemned Littlejohn’s actions and has zero tolerance for violations of the regulation.

“Booz Allen absolutely supported the U.S. authorities in its investigation, and the federal government expressed gratitude for our help, which led to Littlejohn’s prosecution,” Hale mentioned. “We stay up for persevering with discussions with Treasury on this matter.”

Booz Allen says it doesn’t retailer taxpayer information on its programs and has no potential to watch exercise on authorities networks.

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