Beanie Babies Founder Gets Massive FBAR Penalty – Los Angeles Income Tax Planning and Income Tax Litigation Attorney Bruce Givner

by Bruce Givner on November 12, 2013

Ty Warner, the creator of Beanie Babies, has agreed to plead guilty to tax evasion for allegedly hiding over $90 million of unreported income in Swiss accounts. Further, says the Department of Justice (DOJ), by not reporting the income, Warner willfully did not comply with Foreign Bank and Financial Accounts (FBAR) rules. Hence, in addition to facing a five year prison sentence, it is rumored that the DOJ will hit Warner with over $53 million in civil penalties.

For the last several years, the DOJ and its top tax agency, the Internal Revenue Service (IRS), have increased their efforts to ferret out U.S. taxpayers who try to avoid paying income tax by hiding assets in offshore accounts. Warner’s assets were discovered after the U.S. and Swiss bank UBS reached an agreement whereby UBS gave up the identity of several of its American customers.

U.S. citizens and residents are required to file Form TD 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR) if they have a financial “interest in, signature or other authority over, one or more bank, securities, or other financial accounts in any foreign country” and the aggregate value of such accounts at any point in a calendar year exceeds $10 thousand. Banking Secrecy Act, 31 CFR 103.24. Taxpayers face a penalty equal to 50% of the foreign financial account balances if their acts are deemed willful.

Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles, Orange, Ventura, San Bernardino, Riverside and Santa Barbara Counties. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.

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