Waylon Wilcox, a Pennsylvania man, pleaded guilty to filing false tax returns that concealed over $13 million in income from the sale of CryptoPunks NFTs between 2021 and 2022. He underreported his income from 97 transactions, which led to a tax evasion of more than $3.2 million. Wilcox sold 62 CryptoPunks for $7.4 million in 2021 and another 35 for nearly $4.9 million in 2022, but falsely declared in his tax returns that he had not disposed of any digital assets. Authorities stated that his misrepresentations allowed him to evade approximately $2.18 million in taxes for 2021 and $1.09 million for 2022. As a result, he faces a potential prison sentence of up to six years and fines under federal law. This case highlights the importance of accurately reporting NFT transactions to the IRS to avoid legal repercussions.

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