IRS Crypto Unit Appoints Trish Turner Amid Policy Shifts and Leadership Changes

The Internal Revenue Service’s crypto unit has undergone a significant leadership transformation with Trish Turner, a seasoned IRS official, taking the helm. This shift follows the exit of Sulolit “Raj” Mukherjee and Seth Wilks, two key figures from the private sector instrumental in setting up the agency’s crypto oversight. As the IRS ramps up its oversight of cryptocurrencies through intensified audits and the introduction of new, contentious broker rules, Turner’s appointment hints at a potential new direction. This comes amidst the backdrop of the second Trump administration’s expected pivot towards more crypto-friendly policies, despite the agency grappling with substantial internal turnover.

• Trish Turner appointed as new leader of IRS crypto unit.
• Departure of Sulolit “Raj” Mukherjee and Seth Wilks.
• IRS intensifies scrutiny on cryptocurrencies with new broker rules.
• Anticipated crypto-friendly policies under the Trump administration.
• High IRS employee turnover amid policy shifts.

Trish Turner, a veteran at the IRS with over 20 years of service, steps into the role vacated by Mukherjee and Wilks on May 5, 2025. Mukherjee, the executive director of compliance and implementation, alongside Wilks, who directed strategy and development, were pivotal in sculpting the IRS’s approach to digital assets. Their departure, in the wake of widespread IRS layoffs spurred by a deferred resignation policy reintroduced by the Trump administration, might signal a strategic pivot or a response to broader policy shifts.

The IRS has been cranking up the heat on crypto audits and criminal investigations, aiming to tighten its grip on the sector. A prime example is the attempt to introduce broad crypto broker reporting requirements, including the controversial IRS DeFi (Decentralized Finance) broker rule slated for 2027. This move faced backlash from the crypto community for its wide scope and was subsequently overturned by President Donald Trump, marking a clear shift towards a more accommodating stance on cryptocurrencies.

The second Trump administration has indeed shown a warmer embrace of the crypto world. Actions like scaling back regulations, dissolving the Department of Justice’s (DOJ) cryptocurrency enforcement unit, and signing H.J. Res. 25 to strip away extensive tax requirements for decentralized exchanges (DEXs) highlight this shift. Additionally, the formation of a crypto task force tasked with crafting new laws and regulations underscores the administration’s intent to foster a more favorable environment for digital assets. Yet, these changes are unfolding against the backdrop of significant challenges within the IRS, with over 23,000 employees signaling their intent to leave under the deferred resignation policy.

This high turnover rate could have real consequences for crypto taxpayers, potentially causing delays in processing tax returns, particularly for those filing late or with errors. It raises legitimate concerns about the IRS’s capacity to effectively enforce and manage its cryptocurrency oversight strategy. As the crypto industry navigates these transitions, the leadership change and policy shifts under the Trump administration could significantly affect market dynamics and regulatory compliance.

Industry experts like Wesley Barton, Director of The Network Firm, have floated the idea that eliminating or reducing capital gains tax on crypto could be a savvy move by Trump to woo retail investors and crypto enthusiasts. Barton also points out that upcoming Securities and Exchange Commission (SEC) crypto roundtables could set the stage for significant tax policy changes. On the other hand, Avery Dorland, an Enrolled Agent at Smoky Mountain Tax Consulting, advises caution, stressing the importance of waiting for final regulations before counseling clients on specific tax strategies. Dorland underscores the lengthy process from law to formal policy and the critical need for compliance to avoid the IRS’s scrutiny.

As the crypto community keeps a watchful eye on these developments, the potential elimination of capital gains tax on crypto, while not yet enacted, could radically alter market dynamics. It might drive investors towards US-based cryptocurrencies, possibly at the expense of others. Yet, without stringent regulations, such a move could also open the floodgates to scams. The industry’s reaction to these regulatory shifts will play a pivotal role in shaping the future of cryptocurrency regulation and adoption.

Key Takeaways and Questions

• Who has been appointed to lead the IRS’s crypto unit?

  Trish Turner, a veteran IRS official, has been appointed to lead the IRS’s crypto unit.

• Why did Sulolit “Raj” Mukherjee and Seth Wilks leave the IRS?

  They accepted deferred resignation offers amid expected widespread layoffs at the IRS.

• What recent actions has the IRS taken regarding cryptocurrencies?

  The IRS has intensified its focus on cryptocurrencies through increased audits, criminal cases, and attempted to introduce controversial crypto broker rules.

• How might the Trump administration’s policy affect the IRS’s approach to cryptocurrencies?

  The second Trump administration is expected to adopt a more crypto-friendly policy, which could influence the IRS’s regulatory approach by scaling back regulations and supporting the crypto industry.

• What is the significance of the high IRS employee turnover rate?

  The high turnover rate, with over 23,000 employees expressing a desire to leave, could impact the IRS’s ability to effectively implement and maintain its cryptocurrency oversight strategy, potentially leading to delays in tax return processing.