Two key directors in the U.S. Internal Revenue Service's (IRS) cryptocurrency division, Seth Wilks and Raj Mukherjee, have resigned after accepting deferred resignation offers under the Department of Government Efficiency (DOGE), a government initiative led by Elon Musk and President Donald Trump. Both Wilks and Mukherjee joined the IRS in 2024 from the crypto industry and played vital roles in shaping the agency’s crypto tax policies and developing the new 1099-DA tax form. Their departure marks a shift in leadership as the IRS continues to refine its approach to cryptocurrency taxation. (CoinDesk, Coinpedia Fintech News)
The DOGE initiative has been actively restructuring federal agencies, including the IRS, aiming to reduce government spending and eliminate waste, fraud, and abuse. This has involved significant personnel changes, with over 6,500 IRS employees laid off as part of the effort. Additionally, there have been concerns about the DOGE's access to sensitive taxpayer data, raising questions about privacy and the potential for misuse of information. (Business Insider, Politico)
These developments underscore the ongoing transformation within the IRS and other federal agencies as part of broader government efficiency reforms.(Business Insider)