Key Takeaways
- • Federal prosecutors allege Yuridia Trujillo of Meriden, Connecticut, prepared returns claiming fictitious crypto and stock losses on assets clients never owned, according to an IRS announcement on Oct. 22.
- • Trujillo, who operated through Yuri's LLC, allegedly prepared at least 4,335 returns covering tax years 2017 through 2024.
- • A federal grand jury returned the indictment on Oct. 7, and she was arrested Oct. 9 and released on a $50,000 bond pending trial.
- • Each charge of aiding and assisting in preparing a false income tax return carries up to three years in prison upon conviction; all charges remain unproven allegations.
- • Separately, Austin bitcoin investor Frank Richard Ahlgren III received a two-year sentence on Dec. 12, 2024, and $1,095,031 in restitution for inflating crypto cost basis.
Summary
The IRS announced on Oct. 22 that a federal indictment accuses Yuridia Trujillo of Meriden, Connecticut, of preparing tax returns that included losses on cryptocurrency and stock transactions that taxpayers never made. Trujillo operated through her business, Yuri's LLC, and allegedly prepared at least 4,335 returns for tax years 2017 through 2024. According to the indictment, the false entries also involved retirement contributions, dependent care, businesses, and rental properties.
A federal grand jury returned the indictment on Oct. 7, and authorities arrested Trujillo on Oct. 9. She was released on a $50,000 bond pending trial. Prosecutors allege she also used Form 8888, which allows a taxpayer to split a direct-deposit refund among up to three bank accounts, to route portions of clients' refunds into accounts belonging to herself and an associate. Each charge of aiding and assisting in the preparation and presentation of a false income tax return carries up to three years in prison upon conviction. The charges are allegations, and she is presumed innocent unless proven guilty beyond a reasonable doubt.
The case highlights the distinction between legitimate and fraudulent crypto tax treatment. Losses on cryptocurrency held for investment can offset capital gains, and net losses above gains can generally be deducted up to $3,000 against other income ($1,500 if married filing separately), with the remainder carried forward. Taxpayers report individual sales on Form 8949 and summarize them on Schedule D. Separately, Cryptonews.net cited the case of Austin bitcoin investor Frank Richard Ahlgren III, who pleaded guilty in a Texas case to inflating the cost basis of bitcoin sold in 2017. He received a two-year sentence on Dec. 12, 2024, and was ordered to pay $1,095,031 in restitution to the United States. Federal digital asset broker reporting rules finalized in 2024 now give the IRS more transaction data, with gross proceeds reported for 2025 transactions in 2026 and purchase-cost information for certain 2026 transactions following in 2027.
A federal grand jury returned the indictment on Oct. 7, and authorities arrested Trujillo on Oct. 9. She was released on a $50,000 bond pending trial. Prosecutors allege she also used Form 8888, which allows a taxpayer to split a direct-deposit refund among up to three bank accounts, to route portions of clients' refunds into accounts belonging to herself and an associate. Each charge of aiding and assisting in the preparation and presentation of a false income tax return carries up to three years in prison upon conviction. The charges are allegations, and she is presumed innocent unless proven guilty beyond a reasonable doubt.
The case highlights the distinction between legitimate and fraudulent crypto tax treatment. Losses on cryptocurrency held for investment can offset capital gains, and net losses above gains can generally be deducted up to $3,000 against other income ($1,500 if married filing separately), with the remainder carried forward. Taxpayers report individual sales on Form 8949 and summarize them on Schedule D. Separately, Cryptonews.net cited the case of Austin bitcoin investor Frank Richard Ahlgren III, who pleaded guilty in a Texas case to inflating the cost basis of bitcoin sold in 2017. He received a two-year sentence on Dec. 12, 2024, and was ordered to pay $1,095,031 in restitution to the United States. Federal digital asset broker reporting rules finalized in 2024 now give the IRS more transaction data, with gross proceeds reported for 2025 transactions in 2026 and purchase-cost information for certain 2026 transactions following in 2027.
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