The U.S. Internal Revenue Service (IRS) is experiencing a major shift as Trish Turner, who led the agency’s cryptocurrency unit, steps down to join the private sector. This change comes at a crucial time as new cryptocurrency tax regulations are about to be implemented. These new measures mandate additional reporting requirements from individual investors and brokers. The IRS has not yet named a replacement for Turner, leaving a gap in leadership in its cryptocurrency initiatives.
What’s Behind the New Tax Policy?
In recent months, the IRS has heightened its focus on the regulation of cryptocurrency through expanded oversight and reporting requirements. Despite these new rules, the agency is grappling with staffing reductions. Where once it employed 113,000 people, it now has around 76,000 employees. Earlier this year, two other top officials, Seth Wilks and Raj Mukherjee, also exited due to cost-cutting strategies enacted during Donald Trump’s presidency.
Will New Forms Help or Hinder Compliance?
Answering the call for more comprehensive reporting, the IRS is introducing the 1099-DA form, aiming to streamline the disclosure of crypto investments for millions. Currently, about 3 million taxpayers have reported crypto activities, though estimates suggest this number could be underestimated. Speculation surrounds Turner’s departure as the IRS has not publicly responded to the ongoing leadership changes.
“Cryptocurrency has evolved from a niche issue to a central focus for global regulators, and I am proud to have helped lay the groundwork for oversight in this rapidly changing field,”
Turner expressed, emphasizing her involvement during her tenure.
What’s Next for Turner?
Taking on a new challenge, Turner will transition to a tax director position at CryptoTaxGirl, a company specializing in cryptocurrency transactions, and will also work with Asset Reality in the UK. Laura Walter from CryptoTaxGirl says,
“Turner’s joining ensures that our clients receive top-level protection and guidance in their disclosures.”
In the U.S., cryptocurrency tax obligations have remained elusive for many investors. The absence of third-party documentation has substantially hindered proper disclosure, complicating the IRS’s ability to effectively enforce tax compliance.
As part of the upcoming tax changes, major exchanges like Coinbase and Kraken are expected to issue the new 1099-DA forms. However, ongoing ambiguities remain, especially after Congress decided against an IRS rule classifying decentralized finance platforms as “brokers.” This continues to leave U.S. cryptocurrency tax policies in a state of uncertainty.
Despite leaving the IRS, Turner’s departure could serve as a catalyst for the Trump administration to engage more actively with the complex matter of cryptocurrency taxation. The need for clarity and reform appears more urgent than ever.
