Former IRS Contractor Charles Littlejohn Begins Five-Year Sentence for Exposing Trump's Tax Secrets

By Annie Stephan May 23, 2024 02:31 AM EDT

Charles Littlejohn Begins Five-Year Sentence

Former IRS contractor Charles Littlejohn started his five-year prison sentence on May 1, 2024. The Department of Justice labeled his act as stealing documents. These documents are related to a person known as "Public Official A." They were handed to "News Organization 1." These were President Donald J. Trump's tax returns, which appeared in The New York Times.

Reason Behind the Leak

The public expected to see the president's tax returns. For decades, such disclosure was common among presidents. Trump, however, did not follow this practice. In the 1970s, the individual who leaked President Nixon's returns faced no charges. Littlejohn took a further step. He leaked information about the taxes of many wealthy Americans. This action fed nearly 50 articles in "News Organization 2". Here, we are talking about ProPublica.

The Public Service Argument

Littlejohn's action revealed how little the ultra-rich could pay in taxes. The spotlight was cast on the issues within the income tax system. ProPublica showed how moguls like Elon Musk and Jeff Bezos had surprisingly low tax rates. Economist Gabriel Zucman noted that in the 1960s, the wealthiest paid high tax rates, which funded social programs. By 2018, top billionaires had significantly lower effective tax rates than the working class.

Tax Disclosure History

The release of tax returns is historically a sensitive topic. Yet, it can reveal many policy flaws. In the past, Congress passed laws for tax return disclosure. Some egalitarian societies even have public tax information laws. But, as it stands, disclosing tax returns is a crime in the US. Littlejohn admitted his guilt. The sentencing guidelines suggested a maximum term of ten months. However, Federal District Judge Ana Reyes, appointed by Biden, decided on a five-year term. The goal was deterrence. Littlejohn faced comparisons to the defendants on January 6 in this context.

The Harshness of the Sentence

The severity of Littlejohn's sentence is controversial. It's especially harsh when compared to tax evaders' sentences. Let's look at the case of Alon Farhy. He was involved in a complex scheme to fabricate losses and reduce taxes. The Department of Justice did not prosecute Farhy. He only had to pay his taxes plus interest and penalties.

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Tax Evasion vs. Tax Leaks

Tax evaders like Farhy have caused revenue losses. Punishments for these crimes generally correlate with the amount of loss. But for tax leakers like Littlejohn, there is no revenue loss. Deterrence could be warranted for tax evasion as the IRS could have trouble detecting such crimes. However, the risk of job loss and jail time is a significant deterrent against leaking tax information.

The Case for Leniency in Tax Leaks

From a fairness perspective, punishing tax evasion harshly is essential. It helps maintain public trust in the tax system. Targeting leakers, on the other hand, might suggest protecting the interests of the wealthy. Moreover, those who leak vast private data often face lighter sentences. For example, an Uber executive received probation for a massive data breach. Three DHS employees also received lighter sentences for stealing government database information.

The Appeal and Hope for Commutation

Littlejohn has appealed against the sentence. Many await the outcome. The sentence could be shortened to the ten months initially recommended. If the appeal fails, there are calls for President Biden to commute Littlejohn's sentence.

The case of Charles Littlejohn raises critical issues about transparency and fairness. It questions the balance between the public's right to know and privacy. It examines the justice system's approach to those who expose secrets versus those who commit tax evasion. As this story unfolds, its impact on future cases and public discourse remains significant.