The post Crypto Investors Face Tax Uncertainty as Key IRS Officials Resign appeared on BitcoinEthereumNews.com.

Crypto tax is perhaps the most feared tool in the government’s arsenal to regulate the explosive growth of digital assets. An uncertainty here is never a welcome sign. The crypto community in the US is now looking at a new type of tax uncertainty as two senior IRS crypto officials leave at a crucial juncture.  Seth Wilks and Raj Mukherjee, who helped develop the digital asset policy, have left their posts just as the 1099-DA form nears its first enforcement deadline. They joined the IRS just last year and stepped away from their roles on May 2 under a federal DOGE’s voluntary resignation program.  Their exit comes as traders, platforms, and tax professionals prepare for the mandatory use of the 1099-DA form in 2025, a form created to help brokers report crypto activity more accurately and consistently. Crypto Tax Leaders’ Resignations Leave a Critical Gap Wilks and Mukherjee were leaders of the IRS Digital Asset Initiative, and they were responsible for guiding how crypto activity should be tracked and reported. They were brought in to help lead the agency’s efforts to build service, reporting, compliance, and enforcement programs on cryptocurrency and other digital assets.  The duo’s work has shaped key aspects of the 1099-DA form and also helped align tax implementation with blockchain practices. Now with both out of the office, the crypto tax regime faces a leadership vacuum. Without clear replacements, users and exchanges may not know what to expect from the IRS in the next few months. Any delay in guidance can increase the compliance risk or lead to confusion during the next tax cycle. Digital Asset Rules May Shift Without Industry-Informed Leadership Both leaders brought crypto industry experience into the IRS. Wilks previously worked with TaxBit, and Mukherjee held senior tax roles at ConsenSys and Binance. This…

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Filed under: News - @ May 3, 2025 1:22 pm