AUSTIN, Texas — An Austin man has been charged with filing false tax returns and structuring cash deposits to avoid cryptocurrency reporting requirements.
The U.S. Department of Justice (DOJ) said between 2017 and 2019, Frank Richard Ahlgren III allegedly filed false tax returns that either underreported or did not report the sale of $4 million worth of bitcoin in which he had substantial gains. The DOJ said all taxpayers are required to report any sale proceeds and gains or losses from the sale of cryptocurrency on their tax returns.
Ahlgren is accused of using the proceeds from the sale of approximately $3.7 million worth of bitcoin to purchase a residence in 2017. The indictment also alleges that Ahlgren filed a false 2017 tax return that inflated the price he originally paid for the bitcoin, underreporting his gain from the sale.
In 2018 and 2019, Ahlgren also allegedly sold bitcoin for more than $650,000 and failed to report his bitcoin sales on his tax returns for those years.
The indictment also alleges that after selling some of his bitcoin in exchange for cash, Ahlgren made a series of bank deposits of the cash in amounts less than $10,000 each, to avoid triggering currency transaction reporting requirements.
The DOJ said Ahlgren faces up to five years in prison for each structuring count and three years in prison for each false return count.
The IRS Criminal Investigation and the Texas Office of Attorney General are investigating the case.
