What Do Trump's Pardons for Rich Tax Evaders Mean for IRS Enforcement?

rendering of tax ball and chain attached to bag of money for tax burden concept

(Image credit: Getty Images)

Every April, millions of people across the United States dutifully file their taxes, stressed out and worried that even a slight mistake might bring an IRS audit or financial penalties.

That’s because for the so-called “average taxpayer,” deliberately failing to pay taxes or hiding income can sometimes lead to crushing fines or prison time and a criminal record that lingers for life.

But is the outcome of tax evasion the same if you’re rich or influential?

From just $107.88 $24.99 for Kiplinger Personal Finance

Become a smarter, better informed investor. Subscribe from just ~~$107.88~~ $24.99, plus get up to 4 Special Issues

CLICK FOR FREE ISSUE

https://cdn.mos.cms.futurecdn.net/flexiimages/y99mlvgqmn1763972420.png

Sign up for Kiplinger’s Free Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

in the past week, President Trump issued several high-profile pardons involving tax crimes. Among the most notable are the pardons granted to Todd and Julie Chrisley, reality TV stars who had been convicted of bank fraud and tax evasion.

Trump also pardoned former Arkansas state senator Jeremy Hutchinson, who was convicted on bribery and tax-related charges, as well as others convicted of similar tax offenses, including Michael Grimm, a former New York congressman, who served time for tax evasion.

Their crimes and the circumstances surrounding their clemency have reignited debate about fairness, influence, and tax enforcement in the United States. Curious? Read on.

Trump pardons the Chrisleys and others convicted of tax evasion

Todd and Julie Chrisley, the couple behind the reality TV show “Chrisley Knows Best," were just pardoned by President Donald Trump. Here’s some background.

In 2022, a federal jury found them guilty of defrauding banks out of more than $30 million and evading hundreds of thousands in federal taxes.
Prosecutors presented evidence that the Chrisleys used fake documents to secure massive loans, then funneled their TV show income through shell companies to avoid paying what they owed to the IRS.
When the debts mounted, Todd Chrisley declared bankruptcy, reportedly leaving over $20 million unpaid.

Todd was sentenced to 12 years in prison, Julie to 7 years for bank and tax fraud, but Trump granted both full and unconditional pardons on May 27.

In a release at the time of the coniction, Keri Farley, then Special Agent in Charge of FBI Atlanta, stated the following: “As this sentencing proves, when you lie, cheat, and steal, justice is blind to your fame, fortune, and position.”

In a call with the Chrisley's daughter, Savannah Chrisley, posted online, Trump said of the couple’s tax evasion, “It’s a terrible thing, but it’s a great thing because your parents are going to be free and clean, and I hope we can do it by tomorrow.”

Notably, Savannah Chrisley addressed the Republican National Convention in Milwaukee last year. In her remarks, she criticized the U.S. Department of Justice (DOJ) and accused the Biden administration of using the DOJ for political purposes.

Note: The DOJ initiated the charges against the Chrisleys during Trump's first term as president. The jury convictions and prison sentences were handed down during the Biden administration.

NBC news reported that after being released, Tood Chrisley said regarding remorse:

"You're placed in a position as a defendant to either bow down and kiss the ass of the Department of Justice and accept responsibility for things that you did not do in order to avoid a stronger sentence."

Florida executive pardoned by Trump despite tax crimes

Another high-profile Trump pardon recipient this week is Paul Walczak, a Florida healthcare executive who ran several companies.

Walczak was convicted last year after pleading guilty to tax crimes, including failing to pay more than $10 million in payroll taxes withheld from the paychecks of over 600 employees. The DOJ alleged that the funds, intended for Social Security, Medicare, and federal income taxes, were used to finance Walczak’s personal expenses, including a $2 million yacht, luxury cars, and high-end shopping.

The Department of Justice documented that from 2016 to 2019, Walczak withheld nearly $7.5 million from employees and failed to pay an additional $3.5 million in employer payroll taxes.
He also allegedly stopped filing personal income tax returns after 2018, despite drawing a $360,000 salary and transferring $450,000 from business accounts to himself.
Walczak was sentenced to 18 months in prison in April 2025, ordered to pay $4.4 million in restitution, and given two years of supervised release.

Walczak’s mother, Elizabeth Fago, is known to be a political fundraiser and Trump supporter. Not long before her son received his pardon, she reportedly attended a $1 million-per-person fundraiser at Mar-a-Lago.

According to multiple news reports, including the New York Times, Fago lobbied for her son’s release at the event. Less than two weeks after Walczak’s April sentencing, President Trump granted him a full and unconditional pardon.

Note: The Department of Justice brought the charges against Paul Walczak during Donald Trump’s first term.

Tax evasion vs tax avoidance

cartoon rendering of the scales of justice using money

It’s important to note that each of these three pardons issued by Trump involves federal tax evasion. Tax avoidance and tax evasion are often confused, but the distinction is key: one is legal, the other isn’t

Tax avoidance involves using legitimate strategies to lower your tax bill. That can include, for example, claiming deductions for things like mortgage interest, contributing to retirement accounts like 401(k)s or IRAs, or taking advantage of tax credits for education or energy-efficient home improvements.

Legislators built those and other legitimate methods into the tax code, and millions of taxpayers use them to lawfully lower the amount they owe the IRS.

Tax evasion, on the other hand, is illegal. It’s a crime that involves deliberately hiding income, falsifying records, and/or failing to report earnings to avoid paying taxes. The IRS can impose hefty fines, penalties, and even prison time for those caught evading taxes.

For example, in the Chrisley’s case, prosecutors proved to the jury that the couple falsified documents to secure massive loans, spent lavishly on luxury goods, and then used a company to hide income from their TV show to dodge a $500,000 IRS tax bill.

Why does this matter? Well, regarding Walczak’s case, for instance, payroll taxes help fund Social Security and Medicare for more than 65 million people nationwide. When someone cheats on those taxes, it can mean less money for programs that people rely on.

The IRS notes that almost 70% of its revenue comes from employment taxes withheld from paychecks.
But, unpaid payroll taxes remain a problem.
The Government Accountability Office (GAO) reports that as of 2023, over $79 billion is still outstanding even after government collection efforts.

So, tax evasion chips away at the resources for those important programs.

IRS tax enforcement in flux?

It’s worth noting that the landscape at the IRS has changed dramatically since Trump took office for his second term as president.

Under the Biden administration, there was a period of hiring and modernization and a focus on compliance and enforcement with so-called wealthy “tax cheats,” but the Trump administration has reversed course.

As Kiplinger has reported, more than 20,000 IRS employees have exited through the Trump administration’s Deferred Resignation Program since January, with thousands more facing layoffs or early retirement.
That will bring the tax agency’s workforce down to levels not seen in over four decades.
The number of revenue agents who conduct audits has dropped by 31%, and revenue officers who collect delinquent taxes are down 18%, according to a Treasury Inspector General for Tax Administration (TIGTA) report.

Trump has also floated abolishing the IRS in favor of a so-called External Revenue Service (“ERS”) that would rely on tariffs over income taxes.

This sharp reduction in IRS staff hasn’t gone unnoticed. Some taxpayers have reportedly interpreted the downsizing and the public firing of top IRS officials as a signal that the risk of audit or prosecution is lower than it’s been in years.

Some experts warn that perception could lead to more aggressive tax avoidance or evasion. Fewer auditors on staff means complex cases involving wealthy individuals, corporations, and payroll tax fraud, like those at the center of recent Trump pardons, are less likely to be pursued.

As a result, the current environment and Trump’s latest pardons leave many questioning whether IRS tax rules still apply equally and whether now is somehow a safer time to cheat on taxes.

Of course, many experts caution that avoiding taxes remains illegal and carries significant risks — regardless of the current state of IRS and Trump administration enforcement.

This article has been updated to reflect new pardons from Trump at the end of May.

TOPICS

Kelley R. Taylor is the senior tax editor at Kiplinger.com, where she breaks down federal and state tax rules and news to help readers navigate their finances with confidence. A corporate attorney and business journalist with more than 20 years of experience, Kelley has helped taxpayers make sense of shifting U.S. tax law and policy from the Affordable Care Act (ACA) and the Tax Cuts and Jobs Act (TCJA), to SECURE 2.0, the Inflation Reduction Act, and most recently, the 2025 “Big, Beautiful Bill.” She has covered issues ranging from partnerships, carried interest, compensation and benefits, and tax‑exempt organizations to RMDs, capital gains taxes, and energy tax credits. Her award‑winning work has been featured in numerous national and specialty publications.