Yuridia Trujillo of Meriden, Connecticut, has been charged with preparing false income tax returns that included fabricated cryptocurrency losses and other fictitious deductions, according to federal authorities. The IRS announced the allegations on October 22.
Trujillo, operating as Yuri's LLC, prepared at least 4,335 tax returns for years 2017 through 2024. A federal grand jury returned an indictment on October 7, and authorities arrested her on October 9. She is released on a $50,000 bond pending trial.
According to prosecutors, the false returns contained numerous fraudulent entries, including fictitious losses for stocks and cryptocurrency that clients never owned, as well as false claims for retirement contributions, dependent care expenses, businesses, and rental properties.
Trujillo also allegedly misused Form 8888, a mechanism that allows taxpayers to split tax refunds among multiple bank accounts, to direct portions of client refunds into accounts belonging to herself and an associate.
She faces 19 counts of aiding and assisting in the preparation and presentation of false income tax returns. Each count carries a potential sentence of up to three years in prison upon conviction. The charges remain allegations, and she is presumed innocent unless proven guilty.
Legitimate Cryptocurrency Loss Deductions
Under U.S. tax law, genuine losses on cryptocurrency held for investment can reduce taxable income by offsetting capital gains. A capital loss occurs when an investment sells for less than its adjusted basis, typically its purchase price.
When capital losses exceed gains, taxpayers may deduct up to $3,000 of the excess against other income, or $1,500 if married filing separately. Unused losses can carry forward to future tax years.
Legitimate deductions require substantiation through transaction records, including receipts, sales records, exchanges, and the dollar value of assets at the time of transaction. Taxpayers must report individual asset sales and exchanges on Form 8949 and summarize capital gains and losses on Schedule D.
Related Enforcement Action
In a separate case, Frank Richard Ahlgren III, an Austin bitcoin investor, pleaded guilty to false cryptocurrency tax reporting after inflating the cost basis of bitcoin sold in 2017. On December 12, 2024, a federal court sentenced him to two years in prison and ordered $1,095,031 in restitution to the United States.
New federal reporting requirements, finalized in 2024, will expand IRS visibility into digital asset transactions. Beginning in 2025, brokers will report gross proceeds from covered transactions to the IRS in 2026, with purchase-cost information following in 2027.
