The IRS recently experienced the departure of two significant directors, Seth Wilks and Raj Mukherjee, who were leading efforts on cryptocurrency initiatives. They accepted voluntary resignation offers issued by the Department of Government Efficiency, and while they remain technically employees on paid administrative leave for a few more months, their departures mark a notable shift within the agency.
Both Wilks and Mukherjee transitioned to the IRS from the cryptocurrency sector just over a year ago. Wilks was formerly with TaxBit, while Mukherjee held positions at ConsenSys and Binance.US. They were brought on board as part of the IRS Digital Asset Initiative in February 2024, where they were tasked with enhancing the agency’s approach to crypto taxation. This included leading initiatives for reporting, compliance, and enforcement regarding digital assets.
During their tenure, they worked on the introduction of an updated tax form, the 1099-DA, intended to assist U.S. taxpayers in reporting digital asset transactions. Additionally, they were involved in drafting tax regulations specific to the cryptocurrency industry. One of these regulations imposed data collection requirements on decentralized finance (DeFi) brokers, which had been approved in the latter part of the previous administration but was subsequently overturned by Congress earlier this year.
Their resignations come amidst broader job reductions within the IRS, with over 20,000 employees opting for similar voluntary departures. These figures were reported recently by the New York Times, indicating a significant reorganization within the agency.
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