IRS Crypto Chief Joins Private Sector as Tax Rules Take Shape

Trish Turner, the former head of the U.S. Internal Revenue Service (IRS) digital assets unit, has stepped down from her position after only three months in the role, joining the private sector in a tax advisory capacity. Her departure comes amid a period of heightened scrutiny and transformation for the IRS’s approach to cryptocurrency taxation and regulatory enforcement. Turner, who has over two decades of experience with the IRS, will now serve as tax director at CryptoTaxGirl, a firm specializing in cryptocurrency tax compliance and reporting. She will also collaborate with the UK-based firm Asset Reality [1].

Turner’s exit follows the recent resignations of other senior IRS officials in the digital assets division, including Seth Wilks and Raj Mukherjee, both of whom left earlier this year. This trend is attributed in part to staffing and budget constraints within the agency under the Trump administration, which has led to the loss of over 20,000 positions since its inception. The IRS workforce has declined from approximately 113,000 in the 1990s to around 76,000 today. The exodus raises concerns about the continuity of leadership and expertise as the agency prepares for a significant increase in cryptocurrency-related tax filings under newly implemented rules [1].

One of the most notable changes Turner will leave behind is the introduction of Form 1099-DA, a new tax reporting requirement for crypto transactions. This form mandates that cryptocurrency brokers report gross proceeds and cost basis to the IRS and taxpayers beginning in 2026. Previously, only about three million taxpayers had reported cryptocurrency activity, but officials estimate the actual number is significantly higher. The new rule is expected to result in a surge of filings and increased compliance pressure for both investors and brokers [1].

Turner expressed pride in her role in advancing the IRS’s digital asset strategy, noting that digital assets have evolved from a niche concern to a central focus for regulators globally. In her public statement, she emphasized her intention to “build bridges between the industry and regulators” from a private-sector perspective, suggesting a broader trend of regulators transitioning into advisory roles within the crypto industry. This movement reflects the growing complexity of compliance and the need for industry expertise in navigating regulatory frameworks [1].

The timing of Turner’s departure is particularly significant given the political and legislative momentum around crypto tax reform. In April, the Trump administration overturned a Biden-era rule that would have required decentralized finance (DeFi) platforms to report user transactions to the IRS. At the same time, Congress is considering multiple bills to modernize the U.S. approach to crypto taxation, including measures to eliminate double taxation on staking rewards and establish de minimis thresholds for small transactions. These legislative developments, combined with the rollout of new IRS reporting requirements, signal a pivotal shift in how digital assets are treated under U.S. tax law [1].

Turner’s move to the private sector highlights the increasing overlap between regulatory bodies and the crypto industry. As new enforcement tools, such as the 1099-DA form, come into effect, the role of tax advisors and compliance firms is expected to expand. Meanwhile, the IRS faces mounting challenges in managing its compliance strategy amid a leaner workforce and rising political pressure to improve transparency and efficiency in handling digital asset cases [1].

Source:

[1] IRS crypto chief Trish Turner exits amid new tax rules (https://www.thestreet.com/crypto/markets/irs-crypto-chief-trish-turner-exits-amid-new-tax-rules)

[2] Head of IRS Crypto Work Exits as U.S. Tax Changes Loom (https://www.coindesk.com/policy/2025/08/22/head-of-irs-crypto-work-exits-as-u-s-digital-assets-tax-changes-loom)

[3] IRS Digital Assets Chief Trish Turner Resigns After Three (https://finance.yahoo.com/news/irs-digital-assets-chief-trish-140600604.html)

[4] IRS Crypto Chief Trish Turner Resigns After 3 Months (https://web.ourcryptotalk.com/news/trish-turner-resigns-from-irs-to-join-crypto-girl)