Rich Taxpayers In Dark About What IRS Data Was Illegally Leaked

The IRS knows little about what specific taxpayer information former IRS contractor Charles Littlejohn stole when he leaked thousands of tax returns—including that of former President Donald Trump and hundreds of billionaires—to news outlets years ago.

The IRS told taxpayers last month that their information was compromised, about four years after the historic data leak and four months after Littlejohn was sentenced to five years in federal prison for the crime.

Now, the IRS has sent a follow-up letter to those affected who requested more information with details on what the agency knows about the situation. The agency had to wait until the criminal investigation into Littlejohn was complete before it could access which information was stolen. The notification comes amid a wave of uncertainty for wealthy taxpayers who have the option to sue but are hesitating because the damages they’d get in a win are so small. So far, two billionaires have taken legal action.

More than 70,000 people received the initial notice that their information was involved in the breach, an IRS official said Friday. About 400 people received the follow-up letter because they requested more information.

Littlejohn unlawfully disclosed information corresponding to the taxpayer identification number of those who have received the letters, according to the IRS.

“We do not know—at least not at this point—the full scope of the specific information that Mr. Littlejohn unlawfully disclosed,” the IRS letter reads. “However, a broad set of taxpayer information is maintained in this database.”

Interactive graphic: Timeline on IRS contractor Charles Littlejohn leak of taxpayer data

As far as the IRS knows, none of the information leaked by Littlejohn to two news organizations, The New York Times and ProPublica, was disclosed to any additional people, according to the letter. The agency also hasn’t seen any indication that the taxpayer information was used for identity theft or fraud. The government recovered the data that Littlejohn stole.

The criminal investigation into Littlejohn caused the delay in notification, according to the most recent IRS letter to taxpayers affected. The Treasury Inspector General for Tax Administration conducted the criminal investigation, while the Department of Justice charged Littlejohn. The IRS faced legal limits for what it could disclose.

“In deference to these criminal proceedings, it was only after Mr. Littlejohn was sentenced” that the IRS could get information regarding all affected taxpayers, the letter reads.

The IRS posted Friday on its website 10 areas in which the agency was increasing taxpayer data protections, which include improved firewalls and more restricted user access.