The owner of the famed Yankee Tavern was arraigned on tax evasion charges Thursday afternoon after allegedly failing to pay more than a million dollars in personal and sales taxes.

Joseph Bastone, 55, pleaded not guilty on all charges, including grand larceny and false returns during an appearance at the Bronx County Courthouse.

The case could go to a special grand jury next week.

Bastone's lawyers are working on a plea deal with the Bronx District Attorney, sources say.

The Yankee Tavern, which opened in 1923 and is located a block away from Yankee Stadium, is a well-known establishment.

If convicted, Bastone faces up to 15 years in prison.

His lawyers say the case isn't a big deal, adding Bastone will pay whatever taxes are owed.