Seth Wilks and Raj Mukherjee, two leading figures in the IRS’s cryptocurrency division, have resigned. Their exit is part of a larger trend of staff reductions within the IRS, initiated under the Trump administration. Their work was critical in developing tax regulations for digital assets, and their departures represent a setback for the IRS’s ongoing cryptocurrency efforts.
The Internal Revenue Service (IRS) has seen the exit of two key figures in its cryptocurrency division. Seth Wilks and Raj Mukherjee officially stepped down from their roles last Friday, although they remain on paid administrative leave. Their departures tie into a broader personnel reshuffle within the Department of Government Efficiency (DOGE) initiated during President Donald Trump’s administration, which includes voluntary resignation packages offered to thousands of federal employees.
Both Wilks and Mukherjee joined the IRS in February 2024 to spearhead the agency’s Digital Asset Initiative – aimed at bettering the IRS’s approach toward tax responsibilities linked to cryptocurrencies. Their backgrounds are quite impressive, with Wilks previously serving as Vice President at TaxBit, while Mukherjee held senior tax positions at both ConsenSys and Binance.US.
During their time at the IRS, they were pivotal in shaping new regulations and constructing tools designed to improve the agency’s comprehension and oversight of cryptocurrency transactions. They primarily focused on enhancing reporting standards and compliance methods, plus creating enforcement tools to crack down on non-compliance.
One of their notable projects was revising the 1099-DA tax form, a crucial document for American citizens to declare digital asset transactions. This initiative aimed to assist crypto users in correctly filing their taxes, thus providing the IRS with vital information to track the rapidly expanding digital asset market.
Additionally, they were involved in formulating tax legislation for cryptocurrencies. For instance, they were part of the effort that mandated decentralized finance (DeFi) brokers to collect and report specific client details. However, this stipulation was recently overturned by Congress under the Congressional Review Act, with President Trump endorsing that decision.
Wilks held the role of Executive Director of Digital Asset Strategy and Development, while Mukherjee served as Executive Director of the Digital Assets Office. Reports suggest both specialists accepted voluntary buyout offers in light of impending staff reductions within the IRS, with over 20,000 employees joining the deferred resignation program. Many of these employees are also under administrative leave until September.
The departure of Wilks and Mukherjee poses a hurdle for the IRS’s cryptocurrency initiatives, especially as the agency grapples with the pressing need for clear and concise tax regulations regarding digital assets. This shake-up implies the loss of two significant leaders in a field that demands expertise, just when such clarity is most vital.
