Her departure comes just three months after taking the position and marks another shake-up in the agency’s struggling digital assets unit.

Turner announced her resignation in a LinkedIn post, ending more than 20 years of service with the IRS. She will join private sector crypto tax firm Crypto Tax Girl as tax director, according to Bloomberg Tax reporting.

Short-Lived Leadership Role

The 20-year IRS veteran took over the digital assets division in May 2025 after two previous leaders left their positions. Sulolit “Raj” Mukherjee and Seth Wilks, both private-sector experts brought in to run the crypto unit, departed after roughly one year in their roles.

Turner’s quick exit continues a troubling pattern of leadership instability in the IRS crypto division. The agency has struggled to maintain consistent leadership while facing major changes in cryptocurrency taxation rules.

Source: Linkedin

“After more than 20 years with the IRS, I have closed an extraordinary chapter of my career,” Turner wrote in her resignation post. She added that her team helped build programs and laid groundwork for the IRS’s digital asset strategy as crypto shifted from niche to mainstream.

Moving to Private Sector

Turner will work as tax director at Crypto Tax Girl, a firm that helps clients navigate cryptocurrency tax requirements. She will also collaborate with UK-based firm Asset Reality on crypto-related projects.

Laura Walter, founder of Crypto Tax Girl, confirmed Turner’s appointment. “With all of the big crypto tax and compliance changes on the horizon, we are excited to have Trish on board to help advise our clients,” Walter said in a statement.

The move reflects a growing trend of regulatory professionals leaving government roles for private sector positions in the crypto industry. These professionals often command higher salaries while helping businesses understand complex tax rules.

Agency Faces Major Challenges

Turner’s departure comes at a difficult time for the IRS. The agency is preparing for a surge in cryptocurrency tax filings while dealing with significant budget cuts and staffing reductions.

The IRS workforce has dropped from about 113,000 employees three decades ago to roughly 76,000 today. The Trump administration’s budget-cutting efforts have eliminated more than 20,000 additional positions, leaving the agency short-staffed as new crypto tax rules take effect.

One major change involves the new 1099-DA form that crypto brokers must provide to investors starting next year. About 3 million taxpayers have previously reported cryptocurrency transactions, but the real number is likely much higher. This means the IRS could face a flood of new crypto tax filings without adequate staff to handle them.

Regulatory Pressure Mounting

Recent developments have increased pressure on the IRS crypto division. On July 4, the Treasury Inspector General for Tax Administration recommended reforms to how the criminal investigation division handles digital assets. The report cited repeated failures to follow established protocols in crypto cases.

A week later, House Committee leadership scheduled a hearing focused on creating a tax policy framework for digital assets. This hearing aims to address ongoing confusion about crypto tax requirements that have frustrated investors and businesses for years.

Meanwhile, President Trump signed legislation in April that overturned a Biden administration rule requiring decentralized finance (DeFi) platforms to report user transactions to the IRS. This action left treatment of DeFi activities in uncertain territory.

Industry Reaction

Economist Timothy Peterson commented on Turner’s departure, saying she “left the Dark Side to become a Crypto Jedi Knight.” His remark reflects the crypto industry’s view that experienced regulators moving to private sector roles can help bridge the gap between government agencies and businesses.

The crypto industry has long struggled with unclear tax guidance from federal agencies. Many investors and businesses have avoided reporting crypto transactions due to confusing rules and lack of third-party documentation to clarify requirements.

Turner’s move to Crypto Tax Girl could help clients better understand their obligations as new reporting requirements take effect. Her 20 years of IRS experience provides valuable insight into how the agency approaches crypto taxation.

What Comes Next

The IRS has not announced who will replace Turner or how it plans to address the leadership vacuum in its crypto division. The agency faces the challenge of implementing new tax rules while maintaining oversight of a rapidly growing digital asset market.

Turner said she looks forward to “continuing this mission from a new vantage point and building bridges between industry and regulators.” Her statement suggests she plans to use her government experience to help private sector clients navigate the complex regulatory landscape.

The ongoing staffing crisis at the IRS raises questions about the agency’s ability to effectively oversee cryptocurrency taxation. With experienced leaders leaving for private sector roles and budget cuts limiting hiring, the IRS may struggle to keep pace with the evolving crypto market.

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Filed under: Bitcoin - @ August 24, 2025 7:15 pm