IRS Crypto Division Personnel Depart After Engaging in DOGE Transactions

The IRS lost two key directors working on crypto initiatives, Seth Wilks and Raj Mukherjee, on Friday after they accepted deferred resignation offers directed by the Department of Government Efficiency. Wilks and Mukherjee, who both transitioned from the crypto industry to the IRS, are technically still employees for the next few months but are currently on paid administrative leave as of Friday afternoon, according to sources familiar with the matter. The resignation offers were part of a broader program initiated earlier this year.

Wilks, previously a vice president at TaxBit, and Mukherjee, who held leadership roles at ConsenSys and Binance.US, joined the IRS Digital Asset Initiative in February 2024. Their roles involved enhancing the IRS’s approach to crypto taxation and leading initiatives related to reporting, compliance, and enforcement for digital assets. They also contributed to an updated 1099-DA tax form released last summer, aimed at assisting U.S. individuals with tax filing for digital asset transactions.

The duo managed sections of the agency’s efforts to establish tax regulations for the crypto industry. One such regulation, which imposed data collection requirements on decentralized finance (DeFi) brokers, was finalized during the closing days of the previous administration but was later rescinded by Congress this year.

Wilks served as the IRS’s executive director of digital asset strategy and development, while Mukherjee acted as the executive director of the digital assets office. Both officials reportedly accepted voluntary buyouts ahead of anticipated workforce reductions at the IRS. Over 20,000 IRS employees expressed interest in the deferred resignation program, with participants currently on administrative leave through September.