Tax evasion is a serious crime – one that involves civil penalties and possible prison time, as Beanie Babies creator, Ty Warner, has recently found out.
He is charged with tax evasion for the tax year of 2002, when he failed to file FBAR, also known as Report of Foreign Bank and Financial Accounts, for the income of $3.2 million dollars in his Swiss Bank account at UBS AG.
Warner tried to amend the return in 2007, but understated his tax by as much as $850, 300. In 2009 he applied for IRS amnesty program, Offshore Voluntary Disclosure Program, but was denied entry.
According to his attorney, Warner would plead guilty to tax evasion and will face $53.6 in civil penalty, a $250,000 fine and up to 5 years in prison; although most of the taxpayers charged with tax evasion will only get probation.
To learn more about FBAR or IRS “low compliance risk” program for US taxpayers living abroad and who owe less than $1, 500 in taxes, give us a call at 877-829-3535. If you are charged with tax evasion, you want the experienced tax relief professionals on your side, so let US Tax Shield help you settle your foreign account problem with the IRS.