According to Odaily Planet Daily, the U.S. Department of Justice (DOJ) recently announced that Texas resident Frank Richard Ahlgren III admitted to underreporting his capital gains from the sale of $3.7 million worth of Bitcoin.
According to court documents, Ahlgren purchased 1,366 bitcoins in 2015, each worth no more than $500. In October 2017, he sold 640 bitcoins for about $3.7 million and used the proceeds to buy a home in Park City, Utah.
Ahlgren’s 2017 tax return incorrectly overstated his cost basis in Bitcoin purchases, thereby underreporting capital gains. Additionally, he failed to report $650,000 in Bitcoin sales in 2018 and 2019.
"In total, Ahlgren caused the IRS to lose more than $550,000 in tax revenue," the Justice Department noted. Ahlgren will be sentenced at a later date and faces up to three years in prison, supervised release, restitution and fines.