IRS Leaders in Charge of Cryptocurrency depart amidst a surge of Dogecoin-instigated departures
Getting Down to the Bone: The IRS Loses Top Crypto Gurus
Say goodbye to the Internal Revenue Service (IRS) gurus in the world of cryptocurrency, Seth Wilks and Raj Mukherjee, who've bid adieu following paid leave and expecting a full exit in the coming months.
Officially, they're still part of the IRS team, but that's about it. They're on leave and the clock is ticking for their full departure. Their resignation is tied to the Department of Government Efficiency's (DOGE) plan, under President Donald Trump's administration, which encouraged thousands of federal employees to part ways via deferred resignation packages.
Joining forces with the IRS back in February 2024, Wilks and Mukherjee swapped the crypto world for the IRS as the leading lights of the Digital Asset Initiative—a major push to crack the code on crypto taxation. Prior to their stint with the IRS, Wilks was a VP at TaxBit, while Mukherjee nurtured senior tax roles at ConsenSys and Binance.US.
With the IRS, they shaped the agency's regulatory landscape and tools to understand and track crypto transactions. They were instrumental in refining reporting standards, compliance procedures, and enforcement tools. They even took the helm in updating the 1099-DA tax form, a move aimed at helping crypto users file their taxes more accurately and giving the IRS the necessary data to keep tabs on the burgeoning digital asset realm.
The duo additionally made their presence felt in the drafting of cryptocurrency tax laws, including the requirement for DeFi brokers to hand over specific user data. However, that rule bit the dust earlier this year thanks to the Congressional Review Act and President Trump's signature.
They wore the hats of Executive Director of Digital Asset Strategy and Development for Wilks, and Executive Director of the Digital Assets Office for Mukherjee.
The grapevine reports that these two accepted voluntary buyout offers, anticipating significant staff reductions at the IRS. Over 20,000 IRS employees have signed up for this deferred resignation program, many of whom are currently on leave until September.
Their exodus serves a blow to the IRS's crypto initiatives, taking away two of its most seasoned leaders at a time when clear-cut tax guidelines for digital assets are more crucial than ever.
For more scoop, check out: US President Donald Trump: The Pen is Mightier Than the IRS DeFi Rule
Sources:[1] Department of the Treasury - US Government Publishing Office[2] Coin Telegraph[3] IRS Information Reporting Programs: Questions and Answers on Certain Information Reporting Requirements Relating to Payments Made in Virtual Currency[4] IRS Notice 2014-21, Virtual Currency[5] Forbes
- The Internal Revenue Service (IRS) is losing two of its top cryptocurrency experts, Seth Wilks and Raj Mukherjee, who have resigned as part of a deferred resignation program under President Donald Trump's administration.
- Wilks and Mukherjee joined the IRS in February 2024, bringing their extensive experience from the crypto world to help craft regulations and enforce tax compliance.
- During their tenure at the IRS, they were responsible for shaping the agency's regulatory landscape, refining reporting standards, and drafting cryptocurrency tax laws.
- Their departure comes at a critical time, as clear-cut tax guidelines for digital assets are needed more than ever.
- The IRS is now faced with the challenge of ensuring business continuity and technology adoption to maintain their expertise in the evolving world of finance and decentralized finance (DeFi).
