THE FOLLOW UP
STATEMENT

Treasury cites 2018–2020 Booz Allen employee leak that IRS says affected ~406,000 taxpayers; employee pleaded guilty

True

Evidence from credible sources supports the statement as accurate. Learn more in Methodology.

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litigation

IRS breach reports and court records confirm the timeframe of the theft, the approximate number of taxpayers affected, and the employee's guilty plea.

Source summary
On January 26, 2026, Treasury Secretary Scott Bessent announced that the Department is canceling all contracts with consulting firm Booz Allen Hamilton — 31 contracts worth $4.8 million per year and $21 million in total obligations. The move follows an IRS-related data breach in which a Booz Allen employee, Charles Edward Littlejohn, stole and leaked the tax returns and return information of about 406,000 taxpayers and has pled guilty. The Treasury said Booz Allen failed to implement adequate safeguards to protect sensitive taxpayer data.
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Latest fact check

The statement is accurate. DOJ and IRS records show Charles E. Littlejohn, a contractor who worked for Booz Allen Hamilton on IRS systems, stole and disclosed tax returns and return information while working at the IRS between 2018 and 2020; the IRS estimated about 406,000 taxpayers were affected, and Littlejohn pleaded guilty (and was later sentenced) for unauthorized disclosure of tax return information. Verdict: True — primary U.S. government sources (Treasury press release, DOJ press releases and charging/plea documents, and DOJ sentencing notice) corroborate the claim.

Sources

Timeline

  1. Update · Jan 26, 2026, 11:14 PMTrue
    The statement is accurate. DOJ and IRS records show Charles E. Littlejohn, a contractor who worked for Booz Allen Hamilton on IRS systems, stole and disclosed tax returns and return information while working at the IRS between 2018 and 2020; the IRS estimated about 406,000 taxpayers were affected, and Littlejohn pleaded guilty (and was later sentenced) for unauthorized disclosure of tax return information. Verdict: True — primary U.S. government sources (Treasury press release, DOJ press releases and charging/plea documents, and DOJ sentencing notice) corroborate the claim.
  2. Original article · Jan 26, 2026
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