Treasury Cancels All Booz Allen Hamilton Contracts

The US Treasury Department said on Monday it had canceled all of its contracts with Booz Allen Hamilton, accusing the company of failing to protect sensitive data, including at the Internal Revenue Service (IRS), Susan Heavey and Katharine Jackson reported for Reuters.

The IRS has determined that the data breach linked to former Booz Allen Hamilton employee Charles Littlejohn affected approximately 406,000 taxpayers to date. (Photo: Booz Allen Hamilton)

The Treasury Department had 31 contracts worth $21 million with the consulting firm, according to a statement announcing the cancellations.

“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,” Treasury Secretary Scott Bessent said.

“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 IRS.”

The department cited the case of Charles Littlejohn, a former IRS contractor who was sentenced to five years in prison in 2024 for leaking the tax records of Donald Trump and hundreds of thousands of other wealthy Americans to media organizations.

Littlejohn leaked the information between 2018 and 2020 while working as a Booz Allen Hamilton employee, Treasury said.

The IRS has determined that the data breach affected approximately 406,000 taxpayers to date, the department added.