Whether or not he is pardoned, “Chrisley “knows the best” about tax evasion

In 2022, Todd and Julie Chrisley were put in prison for tax fraud, among other things. The celebrity couple best known for their reality TV show titled “Chrisley Knose Best” became famous for the impression they were living a gorgeous lifestyle. But it was all fake, which led to them being convicted of a financial crime. In unexpected news, President Trump forgives Chrisleys. In this article, we will explain how their crimes, what they did for tax evasion differs from legal tax avoidance, and what their pardons meant to mean tax enforcement during Trump’s second period.

Todd and Julie Chrisley’s Financial Crime

The misconduct between Todd and Julie Chrisley began when the couple scamned a Georgia community bank, according to the U.S. Lawyer’s Office for the Northern District of Georgia. The couple obtained more than $36 million in loans from the banks using forged bank statements, financial records and personal financial information.

Additionally, Chrisleys provided the IRS with false financial documents, suggesting that he made less money than expected. Reporting income lower than you earn is tax fraud and leads to those claims. As time went on, the couple ran out of options to continue this scam, filed for bankruptcy, and ultimately shed a bright light on their misconduct.

Distinguish between tax evasion and tax avoidance

There have been many financial crimes committed by Chrisleys, but their main problem was ultimately using fake tax information to obtain loans from financial institutions, providing different false tax information to tax authorities, and committing tax evasion.

Even the IRS states that taxpayers do not have to pay taxes legally than what the tax law explicitly specifies, but they also cannot provide false information to reduce their tax liability. This distinction often leads to taxpayer confusion in assessing the difference between tax avoidance and tax evasion.

Tax evasion occurs when a taxpayer lowers his tax liability via deductions or credits. For example, taxpayers can borrow money to buy a home and receive interest deductions on their mortgages. This deduction was passed to law by Congress to increase the incentive for ownership of the home. This activity means that the home has a lower tax liability than taxpayers who own the taxpayers than taxpayers who do not own the home, but is not considered evasion as it was legally acquired. Similar tax deductions exist, such as donations to charities, excessive medical expenses, and payments of state and local income taxes.

Taxpayers may also have legal tax avoidance through tax credits. Credit also reduces taxpayers’ tax liability. However, rather than reducing taxable income, tax credits reduce taxes. As a result, tax credits are even more valuable than tax credits. Common tax credits include child tax credits, lifelong learning tax credits, and earned income tax credits.

The reduction in tax liability due to legal deductions and credits is in stark contrast to the activities of Todd and Julie Chrisley, who were only low in tax liability due to underreporting income. Their actions were deliberate and careless, and were considered tax evasion, and contributed greatly to the harsh sentences they faced. Additionally, Chrisley has also faced drastic criticism and has not worked with tax authorities over the years by hampering the investigation process by not filing tax returns in a timely manner.

Trump’s tax enforcement during the second period

Trump is forgiving Todd and Julie Chrisley for their crimes, sending a message about the administration’s stance on tax enforcement. In particular, the Chrisley family has been linked to Trump as Todd and Julie’s eldest son Savannah, and was one of the limited speakers during the 2024 Republican National Convention. This connection is similar to Trump’s Paul Waltzak’s amnesty for tax crimes. According to The New York Times, Walczak’s mother attended a million-dollar dinner in support of Trump.

It is not uncommon for a president to issue amnesty, but this is very unusual, especially when an individual is connected to the president, as the timing of this took place for the first few months. The president usually reserves these pardons for the end of his term, as it may indicate policies and preferences that may affect the administration.

In this case, Trump has shown a willingness to overlook relatively simple tax fraud among celebrity couples, and is plausible (and potentially only) for his support. According to Kiplinger, this action can demonstrate Trump’s willingness to tolerate these actions and activities to his supporters. Forbes contributors suggest that Trump’s decision will erode trust in the tax system.

The IRS continues to have a suspicious future. According to the Washington Post, Trump has effectively removed the increase in funding that is due to be received from the 2022 Inflation Reduction Act. Bloomberg reports that Trump’s proposed IRS’ $9.8 billion budget will be about 20% lower than last year’s $12.3 billion. As IRS funds continue to be under attack, these actions to forgive wealth tax cheating are another part of the puzzle, creating an image that tax enforcement by wealthy taxpayers is unlikely to be important.