Waylon Wilcox, a 45-year-old Pennsylvania resident, pleaded guilty to concealing over $13 million in profits from selling CryptoPunks NFTs on his tax returns. This resulted in evasion of approximately $3 million in taxes and now he faces up to six years in prison. The Justice Department clarified that any taxpayer selling an NFT must report their income gains or losses on their tax return. Wilcox sold 97 CryptoPunks NFTs, worth over $13 million, but falsified his IRS tax returns to avoid paying approximately $3 million in taxes for the years 2021 and 2022. Wilcox’s plea came after court proceedings where he admitted to hiding these earnings in an attempt to evade federal taxes.