Brown, PC Brown, PC Tax Practice Group 888.870.0025
Call for an initial consultation
Call 888.870.0025

Beanie Baby Founder to Pay $33.5 Million for Tax Evasion

Who would've thought that someone able to create such sweet and loveable toys would also plead guilty to tax evasion? That's just what millionaire businessman, Ty Warner, the creator of Beanie Babies, did on Wednesday.

Warner was charged with federal tax evasion for failing to report income he earned in a secret offshore financial account he held with UBS, a global financial services firm headquartered in Switzerland.

Gregory Scandaglia, Warner's attorney, said that Warner will plead guilty and pay a $53.5 million penalty.

"This is an unfortunate situation that Mr. Warner has been trying to resolve for several years now - including through an attempt to enroll in the IRS's Offshore Voluntary Disclosure Program in 2009," Scandaglia said in a statement. "Mr. Warner accepts full responsibility for his actions with this plea agreement."

According to the charging document, Warner opened his offshore account with UBS in 1996. In 2002, Warner began transferring assets from his UBS account to Zurcher Kantonalbank, a Swiss financial institution, when the account had a balance of $93,630,083.

Apparently Warner failed to tell his accountants about that income and failed to report the existence of the UBS account in his 2002 Form 1040 filed with the IRS as well as failing to report that same income on an amended 2002 Form 1040.

No Comments

Leave a comment
Comment Information
Print this Page
Email Us For A Response

Request A Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Contact Information

Brown, PC
500 Main Street
Suite 400
Fort Worth, TX 76102

Phone: 817-870-0025
Fax: 817-870-0515
Map & Directions