Ty Warner, billionaire founder of Beanie Babies toys, after a failed attempt to enroll in the IRS Offshore Voluntary disclosure Program, has been charged with federal tax evasion and has agreed to pay a $53.5million penalty for failing to report income earned in a secret offshore account held at UBS in Switzerland.
Warner, ranked 209th in a recent Forbes ranking of the richest Americans (estimated net worth ($2.6billion) opened the UBS /Swiss account in 1996. He hid $3.1million in foreign income from the IRS (and his accountants) and failed to pay taxes of $885,300 in calendar year 2002.
The $53.5million penalty is nearly 60 times the amount of taxes not paid (i.e. $885,300/tax year 2002)
Click headline for complete article, Beanie Baby Creator Ty Warner Charged with Tax Evasion