IRS Ramps Up Crypto Tax Efforts with New Hires

The IRS is taking a big step towards improving cryptocurrency tax compliance by bringing on two private sector experts: Sulolit “Raj” Mukherjee and Seth Wilks. Both have extensive experience in both tax and crypto, and will help the IRS build service, reporting, compliance, and enforcement programs focused on digital assets.

Why is the IRS focusing on Crypto?

The cryptocurrency and digital asset space is complex and rapidly evolving, which creates challenges for tax administration. The IRS wants to ensure taxpayers are meeting their filing obligations and to improve enforcement efforts.

What do the new hires bring to the table?

• Sulolit “Raj” Mukherjee has over 10 years of experience in tax compliance and information reporting for financial institutions, including extensive experience in the crypto industry.
• Seth Wilks has spent the past six years working in the digital asset tax policy space. He also has prior experience working with tax compliance and planning for multinational corporations.

What does this mean for the future of Cryptocurrency Tax and Accounting?

This signals a clear shift towards increased scrutiny of cryptocurrency tax compliance. Taxpayers can expect to see more regulations and requirements in the coming years. The IRS also focuses on criminal investigations related to crypto, with increased cases involving unreported capital gains and failure to disclose ownership.

Overall, the IRS is ramping up its efforts to catch up with the cryptocurrency industry and ensure proper tax compliance. It remains to be seen how effective these efforts will be, but taxpayers should be aware of the increased focus on crypto taxes.