Head of IRS Crypto Work Exits as U.S. Tax Changes Loom For Digital Assets

Trish Turner, the head of the U.S. Internal Revenue Service's digital assets unit, is stepping down to join the private sector. Her departure coincides with impending tax policy changes that could significantly increase the agency's workload in the crypto space. The IRS has recently introduced new rules and forms, including the 1099-DA, to streamline tax reporting for individual crypto investors and brokers.

The exit follows the departure of two other key officials, Seth Wilks and Raj Mukherjee, earlier this year amid budget cuts. The IRS faces a dual challenge: a potential surge in crypto-related filings and DEEP staffing reductions. The agency's workforce has dwindled from 113,000 three decades ago to approximately 76,000 today.

An estimated 3 million taxpayers have previously reported crypto transactions, though the actual number is likely higher. This discrepancy sets the stage for a flood of new disclosures as regulatory scrutiny intensifies.