A Texas Bitcoin investor is sentenced for evading taxes on $4 million worth of Bitcoin gains.
IRS warns crypto users to follow tax rules to avoid criminal charges and penalties.
Roger Ver faces tax evasion charges over $48 million, highlighting global crypto tax issues.
The U.S. Department of Justice (DOJ) has charged a Texas Bitcoin investor with tax evasion. This is the first criminal prosecution for tax evasion linked to crypto. Frank Richard Ahlgren III, who has invested in Bitcoin since 2011, allegedly failed to report capital gains on roughly $4 million worth of Bitcoin.
Ahlgren bought 1.366 Bitcoins in 2015 through Coinbase. At that time, Bitcoin’s price ranged from $495 to $5,807 per coin. By October 2017, Ahlgren had sold around 640 Bitcoins for $3.7 million.
However, Ahlgren lied to his accountant about his Bitcoin purchase prices when filing his 2017 federal tax return. He inflated the prices to reduce his taxable gain and submitted a false return. Following the investigation, U.S. District Court Judge Robert Pitman sentenced Ahlgren to two years in prison for tax evasion. The judge also ordered Ahlgren to pay $1,095,031.
Warnings from Au…
The post First Bitcoin Tax Evasion Case: U.S. DOJ Sends Investor to Prison appeared first on Coin Edition.
