U. S. Tax Agency Loses Crypto Chief Amid Policy Shifts

The person in charge of the U. S. tax agency's digital currency team, Trish Turner, is stepping down. This move happens just as new tax rules for cryptocurrencies are about to take effect. Turner is leaving for a job in the private sector, and it's not clear who will take over her role. The IRS has recently introduced new rules and forms for taxing digital assets. This includes the new 1099-DA form, which will be sent to millions of investors by their crypto brokers. About 3 million taxpayers have already reported crypto transactions, but the actual number is likely much higher. This could lead to a surge in crypto-related tax filings. The IRS is also dealing with significant budget cuts and a reduction in staff. Over the past few decades, the number of IRS employees has dropped from around 113, 000 to about 76, 000. These cuts have been a long-standing issue, particularly targeted by Republican lawmakers. Turner's departure follows the departure of two other top officials in the crypto unit. Seth Wilks and Raj Mukherjee left earlier this year due to budget cuts under the Trump administration. The IRS has not commented on Turner's departure or who will replace her. In a statement, Turner expressed pride in her work to establish oversight in the rapidly changing crypto space. She is now moving to the private sector to help taxpayers, businesses, and institutions understand and navigate the new rules. Turner will be taking on roles as tax director at CryptoTaxGirl and working with the UK firm Asset Reality. For years, crypto investors and businesses have faced uncertainties in U. S. tax laws. Many have avoided reporting their crypto transactions, making it difficult for the IRS to track. With the new 1099-DA forms coming into effect, investors will be under more pressure to report their tax positions accurately. However, a recent rule that treated certain decentralized finance (DeFi) platforms as brokers was overturned by Congress, leaving the tax treatment of DeFi on less certain ground.