Trump Says His Own Government Failed Him in IRS Tax Leak Lawsuit
President Donald Trump has launched a $10 billion (£7.27 billion) lawsuit against the Internal Revenue Service and the US Treasury Department, accusing federal agencies of failing to protect his confidential tax returns and allowing a damaging leak during his first term in office.The case, filed in federal court in Florida, revives scrutiny over how the US government safeguards sensitive taxpayer data.Lawsuit Filed Over IRS Tax Return LeakThe complaint alleges that Trump's tax information was unlawfully disclosed after an IRS contractor gained unauthorised access to internal systems. According to CNN, Trump is suing the IRS and the Treasury Department for at least $10 billion, arguing that federal agencies failed to safeguard his confidential tax returns and allowed them to be leaked during his first administration.Trump filed the suit alongside his sons Donald Trump Jr. and Eric Trump, seeking at least $10 billion in damages. The action targets the IRS and Treasury in their institutional capacities and claims the agencies breached statutory duties designed to protect taxpayer confidentiality.Contractor Identified As Source Of DisclosureThe leak is attributed to Charles Littlejohn, a former government contractor who worked through Booz Allen Hamilton. Prosecutors said Littlejohn illegally obtained and shared thousands of tax returns, including Trump's, without authorisation.In 2024, he was sentenced to five years in prison for the disclosures, which affected numerous wealthy individuals.Tax Data Published By Major OutletsAccording to the lawsuit, the stolen information was provided to journalists and later published by outlets including The New York Times and ProPublica.Trump's legal team argues the wide distribution intensified the harm by exposing private financial details to millions of readers and embedding them in the public record.Claims Of Systemic Security FailuresBeyond the actions of a single contractor, the suit alleges deeper, long-standing weaknesses within the IRS. Lawyers for Trump say Littlejohn had 'staff-like access' to confidential systems and was able to exploit security gaps that the agency had been warned about but failed to correct. The filing frames the incident as an institutional breakdown rather than an isolated breach.In a statement, Trump's legal team said the IRS 'wrongly allowed a rogue, politically-motivated employee to leak private and confidential information' and argued that federal agencies must be held accountable when safeguards fail.Treasury Cuts Ties With Booz Allen HamiltonThe fallout has extended beyond the courtroom. Earlier this week, the Treasury Department announced it would cancel $21 million (£15.27 million) in federal contracts with Booz Allen Hamilton, citing inadequate protections for sensitive data.Treasury Secretary Scott Bessent said the firm failed to implement sufficient safeguards for confidential taxpayer information accessed through its IRS contracts.The decision underscored broader concerns about contractor oversight and data security across federal agencies, adding weight to claims that the breach exposed systemic vulnerabilities.Long-Running Battle Over Trump Tax ReturnsTrump's tax returns have been a focal point of political and legal debate for years. During his first term, he broke with decades of tradition by refusing to release them publicly.In 2022, six years of returns were released by the House Ways and Means Committee after a protracted legal dispute that reached the Supreme Court.The latest lawsuit shifts the focus from disclosure fights to accountability for data protection failures, raising fresh questions about how securely the federal government handles confidential taxpayer information.What Happens NextThe IRS, Treasury Department and Booz Allen Hamilton have been approached for comment, but have not yet filed formal responses in court.As the case proceeds, it is expected to test the extent of government liability for contractor misconduct and could have implications for how federal agencies manage access to sensitive financial data.
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