IRS Digital Assets Chief Trish Turner Abruptly Resigns After Just Three Months—What This Means for Crypto Regulation

Another regulator bites the dust—or perhaps the volatility proved too much.

Trish Turner, the IRS's Digital Assets Chief, has stepped down after a mere three months on the job. Her sudden exit raises eyebrows across both crypto and traditional finance circles.

Short Tenure, Big Questions

Turner’s departure leaves a leadership vacuum at a critical time. The IRS has been ramping up efforts to track and tax digital asset transactions—efforts that now face uncertainty.

No official reason was given, but insiders whisper about internal friction and the breakneck pace of crypto’s evolution. After all, keeping up with DeFi, NFTs, and memecoins isn’t for the faint-hearted—or those accustomed to the glacial pace of legacy finance.

What’s Next for Crypto Oversight?

The timing couldn’t be more ironic. Just as the IRS finally seemed to be getting serious about digital assets, its point person bolts. It’s almost as if regulating a 24/7 global market with a nine-to-five government mindset is… challenging.

One thing’s clear: the crypto world won’t pause for bureaucracy to catch up. Innovation charges forward—whether regulators are ready or not.

And in classic finance fashion, don’t expect a clear roadmap anytime soon. Bureaucracy moves at the speed of fear, not code.

Turner Vows to Bridge Gap Between Industry and Regulators

Turner added that she looked forward to “building bridges between industry and regulators” from a new position outside the agency.

Bloomberg Tax later reported that Turner will join crypto Tax Girl, a private tax advisory firm, as its new tax director.

Founder Laura Walter confirmed the appointment, saying Turner’s expertise will help clients navigate the growing list of compliance challenges.

“With all of the big crypto tax and compliance changes on the horizon, we are excited to have Trish on board,” Walter said.

Her resignation comes at a critical moment for U.S. crypto taxation. The IRS has been under increasing pressure to modernize its digital asset strategy, following repeated criticism from lawmakers and watchdog agencies over its handling of crypto-related investigations.

Turner herself was only appointed in May, following the departures of Sulolit “Raj” Mukherjee and Seth Wilks, who left the division after roughly a year.

IRS Director Trish Turner left the Dark Side to become a Crypto Jedi Knight. Also to make 10X what the IRS paid her. Bio listed within hours. Don't hate on her. One less of them. One more of us. pic.twitter.com/AgzjXWn1I9

The shake-up coincides with heightened congressional scrutiny. Last month, the House Committee on Ways and Means announced a hearing on how to establish a clear tax framework for digital assets.

Earlier in July, the Treasury Inspector General for Tax Administration recommended reforms to the IRS’s criminal investigation unit, citing failures to follow protocols in crypto cases.

Meanwhile, the broader regulatory environment has shifted under the TRUMP administration.

In April, the president signed a resolution overturning a Biden-era rule that WOULD have required decentralized finance (DeFi) protocols to report user transactions to the IRS.

Turner’s MOVE to the private sector highlights the ongoing migration of senior government officials into crypto-focused firms, as the industry braces for sweeping changes in U.S. tax and compliance policy.

IRS Ramps Up Crypto Tax Crackdown With Surge in Warning Letters

As reported, the IRS has intensified its scrutiny of crypto investors in the United States, sending out a wave of warning letters over the past two months.

Tax experts say the letters point to growing enforcement efforts after the agency flagged discrepancies in filings linked to digital asset transactions.

CoinLedger, a crypto tax filing platform, said it received nearly 800 customer support queries about IRS letters between May and June, nine times more than the same period in 2024.

Tax attorneys have also seen a spike in outreach, with some firms now fielding multiple calls each week from concerned clients, compared to little or no activity last year.

The campaign recalls earlier IRS crackdowns in 2020 and 2021, when the agency issued widespread compliance letters after obtaining exchange data, including records from Coinbase.