A staggering breach of sensitive taxpayer information at the Internal Revenue Service (IRS) has come to light, with newly uncovered documents revealing that over 405,000 Americans—including former President Donald Trump—had their confidential tax data exposed. The breach, initially downplayed by the agency, is now being described as one of the most significant privacy scandals in IRS history, sparking outrage and raising urgent questions about the security of personal financial records as tax season ramps up.

The breach centers on Charles Littlejohn, a former IRS contractor who illicitly accessed and leaked tax records between 2018 and 2020. While the IRS initially reported that approximately 70,000 individuals and businesses were affected, audits by the Treasury Inspector General for Tax Administration (TIGTA) have since confirmed a far greater toll: 405,427 taxpayers, with 89% of the victims being companies. Posts on X broke the news earlier today, citing internal documents that expose the full scope of the breach, which includes Social Security numbers, bank details, and income records.

Littlejohn, sentenced to five years in prison in 2024 for leaking Trump’s tax returns and those of other wealthy individuals to media outlets like The New York Times and ProPublica, has become a focal point of the scandal. However, the latest revelations indicate his actions compromised a much broader swath of taxpayers than previously admitted.

The timing couldn’t be worse. The breach comes amidst an already chaotic tax season, with the IRS laying off over 6,000 probationary employees last week as part of the Trump administration’s push to downsize federal agencies via the Department of Government Efficiency (DOGE). Acting IRS Commissioner Doug O’Donnell announced his retirement yesterday, February 24, further destabilizing the agency as it grapples with this crisis. Melanie Krause, the IRS’s Chief Operating Officer, will step in as interim chief, but experts warn that the combination of staff cuts and this data breach could delay tax refunds and erode public trust.
Privacy advocates and lawmakers are sounding the alarm.

(YWN World Headquarters – NYC)