AUSTIN (KXAN) — An Austin man faces charges of tax fraud after allegedly buying a home with cryptocurrency profits that went unreported on taxes, according to a press release from the U.S. Department of Justice (DOJ).
The DOJ’s release alleges that Frank Richard Ahlgren III underreported the sale of $3.7 million in bitcoin in 2017 and failed to report $650,000 in sales on his 2018 and 2019 taxes.
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The release claims that Ahlgren reported a higher price on his initial purchase of bitcoin, which would underreport his 2017 capital gains tax, the DOJ said. He then allegedly used the unreported profits to buy a house in 2017.
“All taxpayers are required to report any sale proceeds and gains or losses from the sale of cryptocurrency, such as bitcoin, on a tax return,” the release states.
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Additionally, Ahlgren is also charged with multiple counts of “structuring” — allegedly depositing cash from sales in increments under $10,000 to avoid required currency transaction reporting.