Academics Urge Biden to Commute Sentence of IRS Data Leaker
By Tim Shaw, Checkpoint
Participating in a new grassroots campaign, a group of law professors joined calls for President Biden to commute the sentence of a former IRS contractor who leaked federal income tax records of wealthy individuals to the press.
Background. A former Booz Allen employee who performed contract work for the IRS, Charles E. Littlejohn, used his access to sensitive taxpayer information protected under
Code Sec. 6103 to first send tax return information about current President-elect Donald Trump to the New York Times in 2019.
The next year, Littlejohn disclosed a tranche of private tax data on thousands of wealthy individuals to ProPublica. Both media outlets published articles based on the information Littlejohn shared. ProPublica ran a series of more than 50 articles compiled to demonstrate how billionaires pay little to no federal taxes.
According to the Department of Justice, Littlejohn used "broad search parameters" on an IRS database to avoid suspicion and circumvented security protocols to save tax returns on multiple personal storage devices.
Littlejohn was charged on September 29, 2023, with one count of unlawfully disclosing tax return information without authorization. The case went to the U.S. District Court for the District of Columbia. Littlejohn pleaded guilty to the single count, and Judge Ana C. Reyes sentenced him on January 29, 2024, to five years in prison, the maximum penalty under
Code Sec. 7213.
Before Littlejohn's sentencing, House Ways and Means Committee Chair Jason Smith (R-MO) led a group of Republicans calling for Littlejohn to receive the
maximum sentence. Smith went on to
sponsor legislation raising the maximum to 10 years and the monetary penalty from $5,000 to $250,000. The bill, titled the Taxpayer Data Protection Act (
H.R. 8292), passed the House on September 17 but stalled in the Democrat-controlled Senate.
The IRS
issued an apology for the leaks and settled a lawsuit by a hedge fund manager whose information was disclosed.
New campaign. Advocacy organizations Patriotic Millionaires and the Revolving Door Project launched a grassroots letter campaign to convince President Biden to reduce Littlejohn's sentence, which a December 17 press release argues was "six times over the four to ten months" recommended by federal sentencing guidelines.
Patriotic Millionaires Senior Vice President for Tax Policy Bob Lord said in a statement that Judge Reyes believes Littlejohn's actions "constituted a greater threat to American democracy than those of the January 6th Capitol insurrectionists." Acknowledging Littlejohn committed a crime, Lord argued that "he actually did the country a great service by exposing the full degree to which our tax code privileges the wealthy and well-connected."
Kenny Stancil, a senior researcher at the Revolving Door Project, explained that the purpose of the campaign is to persuade Biden that Littlejohn's sentence "was a gross miscarriage of justice." The hope is that Biden will "use the precious little time that he has left in office" to "deliver justice to Charles Littlejohn before it's too late."
Central to the campaign is the belief that Littlejohn's crime was for the greater good and rightfully enabled journalists to "expose the massive scale of tax avoidance by ultra-rich Americans."
Professors' letter. Reuven S. Avi-Yonah, professor of law at the University of Michigan; David Gamage, professor of tax law and policy at the University of Missouri School of Law; Goldburn P. Maynard Jr., assistant professor of business law and ethics at Indiana University; and Alex Zhang, assistant professor of law at Emory University, penned a
joint letter dated December 13 and circulated last Monday.
In their letter, the professors disagreed with Reyes' intention to deter other would-be tax leakers. Such deterrence isn't necessary, they wrote, because "IRS workers almost never leak tax information" since they know they "will likely be caught" and "do not value the public's right to know over their own personal freedom."
The letter cites examples of "many cases that involve massive tax evasion" but resulted in shorter sentences than five years or no criminal indictments at all. Tax evaders "should be punished more severely than leakers," the professors reasoned, because leaks do not lose the government any revenue.
Punishing tax evaders "bolsters public perception that the system is fair and therefore that they should pay their taxes," the letter continued. "Going after Mr. Littlejohn, on the other hand, creates the perception that the system protects the interests of the super-rich taxpayers whose returns he leaked."
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