The move follows a Booz Allen contractor leaking confidential IRS records a few years back|Saturnism|CC BY-SA 2.0

The Treasury Department canceled 31 contracts worth $21 million with consulting firm Booz Allen Hamilton after a contractor leaked confidential IRS data showing how wealthy Americans minimize taxes.

Treasury Secretary Scott Bessent said the move aims to restore public trust, citing Booz Allen’s failure to safeguard sensitive information.

The leak, executed by contractor Charles Edward Littlejohn, led to high-profile reports in the New York Times and ProPublica and resulted in Littlejohn’s five-year prison sentence in 2023. 

Booz Allen expressed surprise, stating it follows strict ethical standards and cooperated fully in the investigation. Its stock dropped over 8%.