IRS issues apology for data breach involving wealthy Americans

The Internal Revenue Service (IRS) has issued a rare apology to billionaire hedge fund director Ken Griffin and thousands of other affluent Americans following a significant data breach that led to a lawsuit in 2022. In a statement, the IRS revealed that contractor Charles Littlejohn leaked confidential information to the press.

The apology coincides with the settlement of a lawsuit between the IRS and several high-profile individuals, including Griffin. The breach resulted in the publication of private financial data by ProPublica in late 2022, involving notable figures such as Elon Musk, former President Donald Trump, and Jeff Bezos.

The IRS acknowledged its failure to prevent the unauthorized disclosure by Littlejohn, who violated his contract and betrayed public trust. The agency stated, “The IRS takes its responsibilities seriously and acknowledges that it failed to prevent Mr. Littlejohn’s criminal conduct and unlawful disclosure of Mr. Griffin’s confidential data.”

Griffin and others affected by the breach were assured by the IRS that substantial investments have been made to enhance data security and safeguard taxpayer information. The agency added that it is committed to preventing similar incidents in the future.

According to the U.S. Department of Justice, Littlejohn has pleaded guilty and received a five-year prison sentence for unauthorized disclosure of thousands of tax returns.

The IRS admitted the incident highlighted potential weaknesses in its systems. The agency plans to collaborate with the Treasury Inspector General for Tax Administration, the Government Accountability Office, and other entities to identify and address any vulnerabilities. In its statement, the IRS expressed confidence that the actions and case resolution would result in a more secure and reliable process for protecting taxpayer information.