Core Viewpoint - The U.S. Treasury Department has canceled all contracts with Booz Allen Hamilton due to the company's failure to protect sensitive taxpayer information, following a significant data breach involving a former employee [1][2]. Group 1: Contract Termination - The Treasury is terminating 31 contracts with Booz Allen, which amounts to approximately $4.8 million in annual spending and around $21 million in total obligations [1]. - This action is part of a broader initiative to eliminate waste, fraud, and abuse within government operations and to restore public trust [2]. Group 2: Data Breach Details - The breach, attributed to former Booz Allen employee Charles Edward Littlejohn, is considered one of the most serious in U.S. history, involving the unauthorized disclosure of tax returns and sensitive financial information of numerous individuals, including high-profile billionaires [3][4]. - Approximately 405,000 to 406,000 taxpayers were affected, with the majority being business entities, and the leaked data included full tax returns and sensitive financial details [7]. Group 3: Legal and Regulatory Fallout - Littlejohn pleaded guilty to unauthorized disclosure of tax returns and was sentenced to five years in prison [6]. - The IRS has acknowledged the breach and has begun notifying affected taxpayers, issuing a rare public apology for the improper access and sharing of confidential data [8]. Group 4: Booz Allen's Position - Booz Allen has characterized Littlejohn's actions as those of a rogue actor and emphasized that the company has zero tolerance for legal violations [13]. - The firm has stated that it does not store taxpayer data on its systems and has no ability to monitor activities on government networks [13].