Two prominent IRS crypto leaders have jumped ship amid a massive agency shakeup. Seth Wilks and Raj Mukherjee, who only started their roles in February 2024, accepted deferred resignation offers that’ll keep them on paid leave through September 2025. Talk about a sweet exit package.
The departures are part of a broader exodus under the ironically-named Department of Government Efficiency (DOGE) program – yes, really – initiated during the Trump administration. Over 20,000 IRS employees have taken similar deals, leaving the agency’s crypto oversight capabilities about as stable as a meme coin. The bipartisan support behind recent legislation has only accelerated the agency’s transformation.
Wilks and Mukherjee weren’t just any bureaucrats. These guys were the architects behind critical crypto tax frameworks and reporting requirements. They spearheaded the 1099-DA tax form and drafted regulations requiring DeFi brokers to collect user data. The Digital Asset Initiative brought them aboard to enhance compliance strategies.
But that work hit a wall when Congress stepped in and killed the DeFi reporting rules this April. Market sentiment can shift dramatically when regulatory changes occur, creating uncertainty in the crypto space.
The timing couldn’t be more awkward. The crypto industry faces intensifying regulatory scrutiny, and now the IRS has lost its digital asset brain trust. Market observers are rightfully worried about the agency’s ability to maintain meaningful oversight without its crypto experts.
It’s like sending a flip phone enthusiast to review the latest iPhone.
The departures have left a noticeable void in the IRS’s institutional knowledge. Both leaders brought serious crypto street cred from their time at TaxBit, ConsenSys, and Binance.US.
Now their digital presence has been scrubbed from IRS channels faster than a failed NFT project.
The agency’s future crypto initiatives hang in the balance. With no replacement leadership announced and thousands of staff accepting buyouts, the IRS’s ability to navigate the complex world of digital asset taxation looks shakier than ever.
Industry players are left wondering who’ll be steering the ship – or if it’s already headed for an iceberg.
