IRS Crypto Directors Resign Amid Department of Government Efficiency Changes

The IRS has lost two key directors, Seth Wilks and Raj Mukherjee, from its crypto initiatives due to deferred resignation offers from the Department of Government Efficiency.

• Wilks and Mukherjee are on paid administrative leave but remain IRS employees for a few months.
• Both joined the IRS Digital Asset Initiative in February 2024, focusing on crypto taxation and compliance.
• They contributed to the creation of the updated 1099-DA tax form for digital asset transactions.
• Wilks served as executive director of digital asset strategy, while Mukherjee led the digital assets office.
• A rule imposing data collection requirements on DeFi brokers was overturned by Congress earlier this year.
• Over 20,000 IRS staff have signed up for the deferred resignation program, with administrative leave lasting until September.