IRS crypto chief steps down amid policy shake up

Trish Turner, who leads the U.S. Internal Revenue Service’s digital assets office, is leaving for the private sector just as new tax policies are set to bring a rush of crypto work to the agency.

Her exit leaves the IRS crypto office without a clear leader as major tax changes near.

Turner’s move follows the IRS putting new rules and forms in place to guide tax duties for individual crypto investors and for their brokers.

The departure follows exits by two other crypto leads, Seth Wilks and Raj Mukherjee, who left earlier this year amid the Trump administration’s budget cuts. It is not yet clear who will serve as interim leader of the digital assets unit.

The tax arm of the Treasury Department is bracing for a flood of crypto-sector filings while also dealing with deep budget and staffing cuts in excess of 20,000 employees. The agency’s workforce, often criticized by Republican lawmakers, has shrunk from roughly 113,000 about 30 years ago to around 76,000 in the latest count.

New 1099-DA forms signal bigger filing demands

One of the biggest changes is the new 1099-DA form that millions of investors will get from their crypto brokers.

Roughly 3 million filers have reported making crypto trades, a figure widely seen as low, suggesting many more people will newly disclose crypto activity as the rules take effect. The IRS did not respond to questions about Turner’s exit or who will lead the unit next.

“Digital assets have shifted from a niche issue to a core focus for global regulators, and I am proud to have helped lay the foundation for oversight in this fast-changing space,” Turner said in a statement to CoinDesk. “Now, I’m excited to be moving to the other side of the table to help taxpayers, businesses, and institutions understand their obligations and navigate those same rules with confidence.”

Turner said she will take private-sector roles that include serving as tax director at CryptoTaxGirl, a tax firm that specializes in crypto transactions, and doing work with the U.K. firm Asset Reality.

Laura Walter, CTG’s founder, said in a statement that Turner’s arrival will help “ensure our clients receive the highest level of guidance, protection, and confidence in their filings.”

Crypto tax compliance still clouded

For years, crypto investors and businesses have faced U.S. tax uncertainty, with no third-party documentation that clearly spelled out what they needed to file. Many digital-asset holders did not compute or report their crypto taxes in prior years, adding to the IRS’s challenges.

Because the new 1099-DA forms will start flowing from accounts at firms such as Coinbase and Kraken early next year, those recipients will be under more pressure to calculate and disclose their tax positions.

However, in April  Cryptopolitan reported that Congress overturned an IRS measure that would have classified some DeFi platforms as brokers, leaving tax treatment for that part of the market unclear.

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