Today, U.S. Secretary of the Treasury Scott Bessent announced the cancelation of all contracts with consulting firm Booz Allen Hamilton. The Treasury Department currently has 31 separate contracts with Booz Allen Hamilton totaling $4.8 million in annual spending and $21 million in total obligations.
“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,” said Secretary Bessent. “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 Internal Revenue Service.”
Most notably, between 2018 and 2020, Charles Edward Littlejohn – an employee of Booz Allen Hamilton – stole and leaked the confidential tax returns and return information of hundreds of thousands of taxpayers. To date, the IRS determined that the data breach affected approximately 406,000 taxpayers. Littlejohn has pled guilty to felony charges for disclosing confidential tax information without authorization.