“Real Housewives of New Jersey” stars Joe and Teresa Giudice managed to avoid foreclosure on their 10,000-square-foot Towaco mansion when the couple finally caught up on a slew of missed mortgage payments. They haven’t, however, settled up yet with Uncle Sam. As a result, the Internal Revenue Service (IRS) has filed a $551,563 tax lien against the couple.
A federal tax lien was filed in Morris County, New Jersey, against both Giudices on October 21, 2015, for nine separate tax years. The lien reflects unpaid taxes due and owing in amounts ranging from $4,267.85 for 2008 to $156,272.53 for 2013.
2013 wasn’t a banner year for the Giudices: that same year, they were indicted on 39 counts of conspiracy to commit mail and wire fraud, bank fraud, making false statements on loan applications, and bankruptcy fraud. The charges included separate charges for Joe for failure to file federal income tax returns for tax years 2004 through 2008. As part of the plea agreement, Teresa pleaded guilty to four of the counts against her and Joe to five of the counts against him, including failure to file federal income tax returns.
Teresa was sentenced to 15 months in prison by a federal judge for her role in the financial and tax fraud cases. She began serving her sentence earlier this year at the Federal Correctional Institution in Danbury, Connecticut. Joe was sentenced to 41 months which he will serve after Teresa’s release. The judge agreed to stagger the sentences so that one parent could remain at home with the couple’s four children.
In addition to prison time, the sentencing required that the couple make restitution to Wells Fargo (the target of the bank fraud) of $414,588 and pay fines. In order to make good on the restitution, Teresa’s wages will be garnished.
Those tax liabilities? They didn’t go away at sentencing. The money was and is still owed to IRS. When a taxpayer owes money, the IRS may file a tax lien against the taxpayer (or in this case, taxpayers) to alert creditors that the government has a legal right to the taxpayer’s property. While tax matters are normally kept private, a Notice of Federal Tax Lien is filed in court, making it a public document. The lien is removed when the debt is paid.
The couple has not commented publicly on their plans or timing to repay the tax debt. Chances are that Teresa’s celebrity will help pay some of the bills. She will reportedly be returning to Bravo after her release from prison and there will likely be some kind of post-release interview sold to television.
Teresa is slated to leave prison just before the holidays. Her tell-all book, “Turning the Tables: From Housewife to Inmate and Back Again,” will be released shortly after, on February 9, 2016.
