Beanie Babies are now “US persons.” Uncle Sam is mad at Beanie Babies. Good old Sam has grabbed $53.6 million in FBAR penalties for $885,000 in taxes owed.
In IRS vs. Beanie Babies, Beanie Babies creator Ty Warner agreed to pay $53.6 million in restitution for his Swiss bank account of $94 million.
I do not support offshore tax evasion, but does this seem extreme to anyone else? Maybe it’s just a drop in the bucket when your net worth is $2.6 billion, but Ty could still face prison time.
Here’s what the U.S. Attorney said:
“Regardless of wealth, everyone must pay taxes on all of their income, not just the amount they choose to report. Such conduct invites federal prosecution.”
On the other hand, Hyatt Hotel heiress Penny Pritzker Understated Income by $80 million in income to IRS due to an “inadvertent clerical error.” Penny’s punishment? She was appointed Secretary of Commerce.
Here’s what a White House senior adviser said:
“I think she’ll be extremely effective in leading trade missions around the world and helping U.S. companies develop those contacts that will lead to contracts back here in America.”
3 thoughts on “Beanie Babies, Hyatt Heiress and IRS”
She was “extremely effective” at ripping off the people invested in her families bank too. Taking the money and running while average people lost all their life savings. However, she is a Chicago insider who was a huge Obama supporter so she will get a pass.
I’ve told everyone I know that FATCA is not going to punish the big fish with the right connections.
FBAR and FATCA’s punishments are for the Crime of Having a Bank Account where One Lives if One Lives Abroad. They have nothing to do with taxes.
As far as FBAR and FATCA are concerned, we are supposed to keep our money in our mattresses.
@Sally: No, we supposed to send all our money to IRS to make up for the many Cabinet Ministers (i.e. Giethner, Lew, Pritzker, etc) who have evaded paying their taxes through various means.