What were the legal outcomes and findings related to the IRS contractor who leaked high-profile tax returns?
Executive summary
A former IRS contractor, Charles Edward Littlejohn, pleaded guilty in October 2023 to a federal charge of unauthorized disclosure of tax return information and was sentenced in January 2024 to five years in prison, plus three years of supervised release and a $5,000 fine [1] [2]; prosecutors said he stole tax records and provided them to news organizations including The New York Times and ProPublica [1] [3]. The leak prompted IRS notifications and apologies to affected taxpayers, cancellation of certain Treasury contracts with the contractor’s employer, and a high‑profile civil lawsuit by former President Trump seeking at least $10 billion in damages against the IRS and Treasury [4] [5] [6].
1. The crime, plea and criminal sentence
Federal prosecutors charged Littlejohn in 2023 with unlawfully accessing and disclosing tax return information; he admitted in his plea that he collected taxpayer data between 2018 and 2020 and unlawfully disclosed that information to two news organizations, pleading guilty in October 2023 to one count of unauthorized disclosure under the tax‑privacy statute [4] [1]. A judge sentenced him to five years in prison on Jan. 29, 2024, describing the leak as a serious breach of confidence and a threat to democratic institutions; the sentence also included three years of supervised release and a $5,000 fine [1] [2].
2. Scope of the disclosures and who received them
Prosecutors and reporting tied Littlejohn’s disclosures to reporting by The New York Times (stories about President Trump’s tax returns published in 2020) and to investigative reporting by ProPublica about ultra‑high‑net‑worth taxpayers, with court documents saying Littlejohn stole thousands of returns — Reuters reported more than 8,000 returns relating to roughly 7,600 people as part of the charged conduct [1] [3]. Subsequent IRS communications and oversight reporting later expanded the agency’s estimate of impacted taxpayers, with the IRS notifying more than 400,000 taxpayers that their return information had been accessed or disclosed [5] [4].
3. Agency and contractor consequences
The Treasury Department moved to cancel contracts with Booz Allen Hamilton, the firm that employed Littlejohn when he worked on IRS matters, citing failures to prevent the contractor’s access and disclosure and framing contract cancellation as part of restoring trust and tightening safeguards [6] [7] [8]. The IRS publicly apologized, acknowledged the unacceptable breach of confidentiality, and notified affected taxpayers; agency officials have said criminal investigative limits constrain what more they can disclose about the internal probe [4] [9].
4. Motivations, legal framing and prosecutorial posture
Prosecutors alleged Littlejohn sought the IRS role deliberately to obtain records and that he acted with a political agenda in mind, an allegation reflected in charging materials and reporting [10] [7]. He was charged under statute protecting tax return confidentiality (often cited as 26 U.S.C. §6103 in reporting), and the Justice Department pursued criminal penalties rather than a broader array of charges; court filings and government statements focused on unauthorized disclosure rather than, for example, public‑interest defenses advanced by journalists or sources [1] [11].
5. Civil litigation and competing remedies
The leak spawned litigation: individual lawsuits and notices to affected high‑profile taxpayers followed, and in January 2026 President Trump, his sons and the Trump Organization filed a $10 billion suit alleging the IRS and Treasury failed to take mandated safeguards to prevent the disclosures and caused reputational and financial harm [10] [6] [3]. Legal commentators, and at least one plaintiff‑settlement in a related case, have pointed out that criminal punishment, contract cancellations and agency apologies have already been imposed — commentary that raises questions about the necessity and size of the newly filed damages claim [12] [9].
6. Where reporting leaves gaps and competing narratives
Public reporting establishes the guilty plea, sentence, media recipients, agency notifications and contract fallout, but some precise details remain contested or constrained by the criminal record: counts of exactly which returns were disclosed, the full chain of custody to particular articles, and the internal security failures at Booz Allen or the IRS are partially redacted or limited by investigative rules [4] [11]. The case has been framed alternately as a straightforward criminal breach of privacy and as politically charged — a tension visible in the prosecutors’ allegations, the Trump civil suit, and in commentary about proportional remedies [10] [12].