The U.S. Internal Revenue Service (IRS) is bolstering its digital assets regulation team by incorporating two former cryptocurrency executives into its ranks, a move announced on February 27 as tax season nears. Sulolit “Raj” Mukherjee, previously the global head of tax at ConsenSys and an executive at Binance’s U.S. operations, along with Seth Wilks, formerly of crypto tax software company TaxBit, have been appointed as advisers to the IRS.
A Strategic Move for Enhanced Compliance
IRS Commissioner Danny Werfel emphasized the strategic importance of integrating private sector expertise to lead the development of service, reporting, compliance, and enforcement initiatives centered on digital assets. This initiative is part of the IRS’s broader effort to adapt to the evolving landscape of digital currencies and ensure compliance with tax regulations.
Focus on Digital Assets
The recruitment of Mukherjee and Wilks underscores the IRS’s commitment to addressing the complexities of cryptocurrency taxation. The agency is actively working on regulations that will obligate crypto brokers, including exchanges, to disclose extensive transaction details of their clients to the U.S. government. This measure aims to enhance transparency and compliance in the rapidly growing digital asset market.
Tackling Cryptocurrency Tax Evasion
The IRS’s financial crimes unit is expanding its investigations into cryptocurrency-related tax evasion cases, reflecting the growing challenge of ensuring tax compliance in the digital currency space. Additionally, the IRS has introduced a new tax requirement that mandates the reporting of any transaction involving the receipt of $10,000 or more in cryptocurrencies, a move that has sparked debate within the crypto community.
