The IRS lost two key crypto initiative directors, Seth Wilks and Raj Mukherjee, who accepted voluntary resignations after just over a year. They are now on paid administrative leave while the agency undergoes staff cuts. Both came from the crypto industry and were tasked with improving tax compliance and regulatory frameworks. Over 20,000 IRS employees are also part of a deferred resignation initiative.
The IRS has recently lost two prominent directors from its crypto initiatives. Seth Wilks and Raj Mukherjee both accepted voluntary resignation offers and left their positions within a year of joining the agency. This information comes from two sources familiar with the situation and was reported late last week.
Wilks and Mukherjee, who both transitioned from the crypto industry to the IRS, are still technically employees for the next few months but are now on paid administrative leave. Their resignations follow a broader initiative by the Department of Government Efficiency, which, earlier this year, offered deferred resignations to several federal employees under the Trump administration, particularly through DOGE deals.
Before joining the IRS, Wilks was a vice president at TaxBit and Mukherjee was involved with both ConsenSys and Binance.US. They began working on the IRS’s Digital Asset Initiative in February 2024, focusing on improving the IRS’s approach to crypto taxation. Their responsibilities included enhancing reporting, compliance, and enforcement programmes for digital assets, in addition to coordinating with industry stakeholders.
Together, they oversaw the creation of an updated 1099-DA tax form that was meant to assist U.S. citizens in filing taxes related to digital asset transactions. They also played a role in drafting new tax rules applicable to the crypto sector. Notably, the IRS had finalised one of these rules, aimed at implementing data collection requirements for decentralized finance (DeFi) brokers. However, Congress nullified this rule earlier this year under the Congressional Review Act, following a joint resolution from Trump.
Wilks held the position of executive director of digital asset strategy and development, whilst Mukherjee was the executive director of the digital assets office. Sources mentioned that they accepted voluntary buyouts, but these deferred resignations were likely a precursor to further cuts within the IRS.
Reports from the New York Times suggested that over 20,000 IRS employees had opted for the deferred resignation programme, and these staff members are now on administrative leave until September. Co-reporting by Cheyenne Ligon contributed to this update.
