IRS Crypto Directors Step Down Amid Staff Restructuring and DOGE Initiative

The IRS has lost two key leaders in its cryptocurrency initiative, Seth Wilks and Raj Mukherjee, who accepted deferred resignation offers under the Department of Government Efficiency (DOGE) program. Although technically still IRS employees, both were placed on paid administrative leave as of Friday, sources told CoinDesk.

Wilks, formerly a VP at TaxBit, and Mukherjee, previously head of tax at ConsenSys and Binance.US, joined the IRS Digital Asset Initiative in February 2024. They played critical roles in shaping the agency’s crypto taxation framework, leading efforts to enhance reporting, compliance, and enforcement strategies. Their work included contributing to the updated 1099-DA tax form, aimed at simplifying crypto tax filing for U.S. taxpayers.

The two also helped draft key tax policies, including a rule mandating data collection from decentralized finance (DeFi) brokers. This rule, finalized during the Biden administration, was later overturned by Congress under the Congressional Review Act and signed off by President Donald Trump.

Wilks served as Executive Director of Digital Asset Strategy and Development, while Mukherjee led the IRS Digital Assets Office. Both officials reportedly took voluntary buyouts as part of a broader downsizing effort, which saw over 20,000 IRS employees enroll in the deferred resignation program, according to the New York Times. These staff are expected to remain on administrative leave through September.

Their departure raises concerns about continuity in the IRS’s digital asset policy development, especially at a time when the crypto industry is under renewed regulatory focus. The IRS’s next steps in crypto enforcement and compliance remain uncertain as key talent exits.