The head of the U.S. Internal Revenue Service’s digital assets unit, Trish Turner, is departing her position for the private sector as new tax policies are expected to significantly impact the agency’s workload regarding cryptocurrencies.

What to know:

• Another senior official from the IRS focusing on crypto is resigning just as a surge in cryptocurrency tax filings is anticipated.
• Trish Turner is leaving, following two other prominent departures amid ongoing efforts by the Trump administration to streamline federal agency staffing.

Turner’s exit raises questions about leadership continuity for the office responsible for overseeing tax obligations related to cryptocurrencies. This comes at a time when the IRS is implementing new regulations that will affect individual crypto investors and their brokers. Two other IRS officials focusing on crypto, Seth Wilks and Raj Mukherjee, have also left in recent months.

As the Treasury Department’s tax arm braces for an influx of cryptocurrency filings, it is also coping with substantial budget cuts and staffing reductions exceeding 20%.

“Digital assets have shifted from a niche issue to a core focus for global regulators, and I am proud to have helped lay the foundation for oversight in this fast-changing space,” Turner stated.

Now, she will serve as the tax director at CryptoTaxGirl, a firm that specializes in helping clients navigate cryptocurrency tax compliance.

Among the changes set forth in IRS regulations is the issuance of the new 1099-DA form, which many crypto investors will soon receive from their brokers, further pushing them to clarify and report their tax positions accurately. This transition reveals a troubling gap where many crypto investors have not properly addressed their tax obligations in previous years, posing challenges to IRS compliance efforts.