Man Faces Six Years for Omitting $13.1M in NFT Sales
1min read A Pennsylvania man is facing up to six years in prison for filing false tax returns that omitted millions of dollars in income from the sale of non-fungible tokens (NFTs).
Waylon Wilcox, the individual in question, earned a significant portion of his unreported income by selling 97 CryptoPunk NFTs in 2021 and 2022, according to the U.S. Attorney’s Office for the Middle District of Pennsylvania.
The U.S. Attorney's Office alleges that Wilcox underreported his 2021 income by more than $8.5 million, which reduced his tax burden by nearly $2.2 million. In 2022, he underreported his income by nearly $4.6 million, reducing his tax liability by over $1 million. Despite these substantial sales, Wilcox indicated on his tax returns that he did not receive any money for digital assets, contrary to the prosecution's claim that he sold 97 CryptoPunks worth $12.3 million.
Yury Kruty, the Special Agent in Charge of the Philadelphia Field Office, emphasized the importance of ensuring that everyone complies with tax laws, especially in the context of virtual currencies and NFT transactions. He stated, "IRS Criminal Investigation is committed to unraveling complex financial schemes involving virtual currencies and non-fungible token (NFT) transactions designed to conceal taxable income. In today’s economic environment, it’s more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe."
Wilcox pleaded guilty last week to two counts related to filing false tax returns. His sentencing is scheduled for a later date, and he faces a maximum penalty of six years in prison. This case highlights the increasing scrutiny on digital asset transactions and the importance of accurate tax reporting in the evolving landscape of cryptocurrencies and NFTs.
