Trump Pardons ‘Chrisley Knows Best' Stars, Yet IRS Tax Lessons Remain
Todd and Julie Chrisley were convicted of tax evasion and bank fraud, and have been in prison since January 2023. Todd was sentenced to twelve years, and Julie was sentenced to seven years. But their long sentences ended when they were issued full pardons by President Trump. The President said he thought they had been treated harshly, but that is not unusual for the kind of bank fraud and tax evasion charges of which they were convicted. The Chrisleys may no longer need to worry about the big mistakes that landed them in jail, but there are still some big lessons in their case that remain important for observers.
According to The Department of Justice Press Release when they were sentenced:
False statements to auditors are a huge mistake. Conduct during the audit can be pivotal, and is one reason to hire professionals to handle it. Some people end up in criminal tax trouble because they mishandle a civil IRS audit. Whether it is the FBI or the IRS asking questions, don't lie. And don't engage in evasive or obstructionist behavior during an IRS audit. You may think you can outsmart the IRS or manipulate the government to come out ahead, but above-board communications with the IRS are best.
Evasive or obstructive behavior during a tax audit can land you in very hot water. IRS criminal tax cases can start with an investigation, but sometimes, criminal tax cases come out of civil IRS audits. Sometimes even simple interactions with the IRS can go south. If an IRS auditor discovers something suspicious in a civil audit, the auditor can notify the IRS's Criminal Investigation Division. The IRS is not obligated to tell you that this criminal 'referral' is occurring. The IRS auditor might suspend the audit without explanation, and you might think that the audit is over, or is stalled and might not ever resume. Meanwhile, the IRS can be quietly building a criminal case against you.
Saying different things to your bank and to the IRS was one of the Chrisleys problems. Prosecutors showed that the Chrisleys provided banks with personal financial statements containing false information, and that they fabricated bank statements to get millions of dollars in loans. You don't want to lie on either a loan application or a tax return, and having two documents side by side can easily show that at least one of them is wrong.
The Chrisleys lost in the face of government claims that they lied to get $30 million in bank loans, and then spent it on a lavish lifestyle that they could not afford. Although the Chrisleys were raking in the cash, they failed to pay federal income taxes for multiple years. The Chrisleys drew enormous attention to themselves over and over again. Avoid lavish spending, especially publicly. It's bad enough if you are skirting your tax obligations, but, if you are doing that and simultaneously living lavishly, it can look even worse.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBS News
30 minutes ago
- CBS News
Pennsylvania food banks worry about SNAP cuts in federal government's proposed budget bill
Food banks fear that if the budget bill heading to the U.S. Senate gets passed, thousands of people in Pennsylvania will go hungry. The Supplemental Nutrition Assistance Program helps nearly 2 million Pennsylvanians put food on the table. "For every meal the food bank provides, SNAP provides nine meals," said Jennifer Miller, CEO of the Westmoreland Food Bank. Leaders from the Westmoreland Food Bank and Feed Pennsylvania came together with the secretaries of the Pennsylvania Departments of Human Services and Agriculture to discuss how proposed federal changes would impact the most vulnerable in the state. They said the House-passed reconciliation bill would cut nearly $300 billion from the SNAP program through 2034. "We have existing work requirements in SNAP, but this bill would make them more strict. And as a result, we believe at least 140,000 Pennsylvanians could lose access to food assistance that helps people be healthy enough to go to work in the first place," Pennsylvania Department of Health and Human Services Secretary Val Arkoosh said. Food banks fear they will see substantially more people lining up for food. "We are not equipped to absorb the massive demand that would result from reduced access to federal nutrition programs. Food banks cannot replace the scale, the reach and the stability of the SNAP program," Miller said. "If enacted, these cuts would eliminate more meals per year distributed by the entire charitable food network in this country," said Julie Bancroft, CEO of Feeding Pennsylvania. State Agriculture Secretary Russell Redding said losing SNAP dollars would also hit farm families. "Roughly 25 cents of every grocery dollar spent goes straight back to the farm, 25 cents for every dollar for food purchased at the grocery store," Redding said. Arkoosh said the proposed cuts would cost the state over $1 billion more annually. "The result would be devastating for Pennsylvania families and for our economy," Arkoosh said. Many believe the fight is not over, though. "You all have a role in contacting your senators, your congressperson, letting them know how this impacts our commnity, our neighbors, our friends," Westmoreland County Commissioner Ted Kopas said.
CNN
33 minutes ago
- CNN
Three attacks in two months: Why American Jews are on edge
CNN's Bianna Golodryga breaks down the three high-profile recent attacks on Jewish elected officials, diplomats and community events that are putting American Jews and government officials on edge.
Yahoo
34 minutes ago
- Yahoo
Opelousas Museum launches Neighborhoods Project
OPELOUSAS, La. () — Historic preservation has always been a priority as Opelousas continues to evolve. Now, Patrice Melnick with the is continuing that mission with the Where We Live: Opelousas Neighborhoods Project. 'The main idea of the project is to highlight the neighborhoods, and they have names like the Brickyard and the Oil Mill and Garland, and they're commonly known, but they don't appear on maps. So, we want to raise the profiles of the neighborhoods especially the profiles of the people who lived there,' Melnick said in an interview with News 10. The way the museum plans to accomplish that goal is by having residents take pictures in their neighborhoods along with written stories about their memories. 'At the end of the project, which will be the end of the year, we're going to print some of those photographs and we're going to have an art show,' said Melnick. Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Melnick is also asking for assistance in labeling these special areas on a map of the city. 'We have one map that has the neighborhoods,' Melnick explained. 'Some of them may be wrong. So, we encourage people to we have a blank map with an invitation for people to come and draw in where their neighborhoods are. And even what's cool in each neighborhood.' With so much history in the city, Melnick says the people who live in it will tell the story of the city in the most genuine way possible. 'People are very proud of where they come from,' Melnick said. 'They're proud of their neighborhoods. It's a part of their identity. They have memories and a lot of associations, a lot of time that has to do with family and community. And so, it's exciting to hear those stories and to share them. And maybe it'll create a stronger sense of community between us.' For more on the Opelousas Neighborhoods Project, visit the link. Senators itching for Trump green light to move on Russia sanctions Concerns grow over river diversion project in Atchafalaya Basin Opelousas Museum launches Neighborhoods Project A Quiet Week of Weather With Near Normal Temperatures… Trump team emphasizes immigration in Boulder response Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
