IRS Crypto Chief Steps Down Amid Policy Shake-Up as Tax Reporting Rules Loom

The IRS's digital assets office faces leadership uncertainty after the departure of its crypto chief, coinciding with major tax reporting changes for the industry. The exit follows a wave of senior staff departures and comes as the agency prepares to implement new 1099-DA forms for cryptocurrency transactions.

Approximately 3 million filers have previously reported crypto trades—a figure regulators believe significantly underrepresents actual activity. The new reporting requirements are expected to dramatically increase disclosures as brokers begin issuing 1099-DA forms to investors.

The Treasury Department's tax arm confronts these expanded oversight demands while grappling with DEEP staffing cuts. The IRS workforce has shrunk nearly 33% over three decades, dropping from 113,000 to 76,000 employees—a reduction that could strain enforcement capabilities.