If You’re Tempted to Hide Funds Offshore…
Ty Warner was an actor who didn’t quite make it in Hollywood. Instead he invested all he had in his company, Ty Inc. and subsequently made a fortune. The self-made billionaire is now admitting to tax evasion and faces up to five years in prison.
Warner is the man behind the trendy, cute Beanie Babies which took America by storm in the 90’s. The adorable little animals brought Warner billions of dollars, but not without consequences. Now he is being accused of failing to report more than $3 million in income from an offshore account. Warner is cooperating with the IRS and has plead guilty. He will pay a $53.6 million penalty.
The action comes after negotiations between the U.S. and Switzerland have left the Swiss obligated to share information about American funds they have aided in hosting over the years.
Federal tax law requires U.S. taxpayers to pay taxes on any income earned worldwide. Failing to do so can result in up to five years in prison. USA Today has more on this topic: http://www.usatoday.com/story/news/nation/2013/09/18/beanie-babies-founder-warner-tax-evasion/2833359/