Disclosure fallout
Federal tax returns are strictly confidential. It’s between the taxpayer and the IRS, and the IRS agents’ lips are sealed. That’s why it was quite shocking when ProPublica published articles in December 2021 and April 2022 with details from the tax returns of some of the wealthiest taxpayers in the U.S.
How did that happen? The IRS had outsourced certain functions to consultant Booz Allen Hamilton, and their employee, Charles Littlejohn, had stolen IRS data and transferred it to ProPublica. The returns of over 405,000 taxpayers were taken. Littlejohn pleaded guilty in October 2023, and is in federal prison.
On April 29, 2024, Kelcy Warren sued Booz Allen for the unauthorized disclosure of his tax returns, seeking statutory and punitive damages. The statute of limitations comes into play, because Warren had to file his lawsuit within two years. But two years from when? Booz Allen argued that it would be from the date of publication, December 2001, so the lawsuit is too late. Warren countered that he had no idea at that time who was responsible for the leak, he had no idea who should be sued until September 2023, when the Littlejohn indictment was announced. The Court has not decided the issue as of this writing.
Meanwhile, in January Treasury Secretary Scott Bessent announced that $21 million worth of contracts the government had with Booz Allen will be cancelled because of the firm’s failure to safeguard the IRS data and properly supervise their employee. A Booz Allen spokesperson expressed surprise at the development, as they had cooperated fully in the investigation that led to the identification of their employee as the criminal behind the leak.
Finally, President Trump has sued the IRS for damages from the leaking of his tax returns. Under the law, the IRS sent notifications to the 405,000 taxpayers who data had been breached, and Trump received his notice on January 29, 2024. He is arguing that he was not on notice of the leak until that date, so that his lawsuit comes within the two-year period for filing.
(February 2026)
© 2026 M.A. Co. All rights reserved.