IRS Crypto Chief Departs Amidst New Tax Regulations

IRS Crypto Unit Faces Leadership Change

Trish Turner, who headed the IRS’s digital assets unit, has left the agency to pursue opportunities in the private sector. This departure coincides with the rollout of new tax regulations impacting the cryptocurrency space.

Turner's exit is the latest in a series of departures from the IRS crypto team, reportedly due to budget constraints stemming from the Trump administration, which saw a significant reduction in the IRS workforce. Turner had been appointed to lead the digital assets section just months prior, following the resignations of two other key crypto-focused officials.

New Rules on the Horizon

Turner's resignation comes at a crucial time. The IRS is gearing up for a potential surge in filings related to digital assets due to recently enacted regulations, particularly the new 1099-DA form. This form requires crypto brokers to report transactions to both the IRS and their customers, starting next year.

While an estimated three million taxpayers have previously disclosed cryptocurrency transactions, the actual number is expected to be substantially higher, suggesting a potential increase in disclosures as a result of these new regulations.

The Private Sector Beckons

In a statement, Turner highlighted the shift of digital assets from a niche issue to a central focus for global regulators. She expressed pride in laying the foundation for IRS oversight in this area. She will now be joining CryptoTaxGirl as a tax director and will also be working with UK-based Asset Reality.

Key Takeaways:

• The head of the IRS's digital assets unit, Trish Turner, has resigned.
• Her departure follows other resignations attributed to budget cuts.
• The IRS is preparing for a surge in filings due to new crypto tax regulations (1099-DA).
• Turner will be joining CryptoTaxGirl and Asset Reality.