Beanie babies and Tax EvasionBeanie babies and Tax Evasion
H. Ty Warner, the billionaire creator of Beanie Babies, evaded $5.6 million in U.S. taxes by hiding assets in a Swiss bank account. He pled guilty to one count of tax evasion, made full restitution, and paid a $53.6 million civil penalty. The Sentencing Guidelines provided a recommended term of imprisonment, but the district judge gave Warner a more lenient sentence: two years’ probation with community service, plus a $100,000 fine and costs. The government claims his sentence was unreasonable because it does not include a term of incarceration. The judge said it was reasonable because he took into account Ty’s history of donations and charity. Gooding CPA will never recommend risky foreign tax havens. The IRS is knowledgeable about this and pursues such cases to the full extent of the law. Contact Gooding CPA for other ways to do tax planning that will not include prison.