Federal prosecutors have charged a Connecticut tax preparer with 19 counts tied to allegedly false income tax returns, including filings that reported cryptocurrency trading losses for clients who, according to the indictment, never owned the assets in question.
The case against Yuridia Trujillo of Meriden also alleges a broader pattern of fabricated tax items and improper refund routing. Authorities say she prepared at least 4,335 returns covering tax years 2017 through 2024.
Indictment centers on false tax return allegations
A federal grand jury returned the indictment on Oct. 7, and Trujillo was arrested on Oct. 9. She has since been released on a $50,000 bond while the case proceeds to trial.
Prosecutors allege that numerous returns she prepared included false information across several categories, including retirement contributions, dependent care, businesses, and rental properties. The indictment specifically claims some filings listed fictitious losses from buying and selling stocks and cryptocurrency that clients did not own.
Refunds allegedly redirected with Form 8888
The government also alleges that Trujillo used Form 8888 to send portions of clients’ tax refunds to bank accounts held by herself and an associate.
That allegation sits alongside the claims about fabricated deductions and investment losses, making the case not only about overstated tax benefits but also about where some of the refund money was directed.
Why crypto losses matter on a tax return
In legitimate cases, losses from cryptocurrency held as an investment can be used to offset capital gains. If total capital losses are greater than capital gains, taxpayers can generally deduct up to $3,000 of the excess against other income, with any remaining amount typically carried forward to future years.
Those claims normally require documentation of purchases, sales, exchanges, and the dollar value of the cryptocurrency at the relevant times. Crypto transactions are generally reported by listing individual sales and exchanges on Form 8949 and then summarizing them on Schedule D.
What comes next in the case
The 19 counts allege aiding and assisting in the preparation and presentation of false income tax returns. If convicted, each of those charges carries a maximum sentence of three years in prison.
For now, the confirmed next step is the criminal case itself. The indictment sets out the government’s allegations, and those claims remain to be tested in court.
Source: news.bitcoin.com