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IRS Brings Crypto Veterans Aboard to Guide Tax Regulations

2 mins
Updated by Kyle Baird
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In Brief

  • IRS hires former Binance.US and TaxBit execs to enhance crypto compliance and enforcement efforts.
  • The Treasury recently adjusted crypto transaction reporting rules, delaying cash-equivalent requirements.
  • New IRS regulations aim to align crypto tax reporting with securities, amid increased enforcement.
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The Internal Revenue Service (IRS) has recently hired two prominent figures from the digital asset industry. Their mission is to spearhead the agency’s efforts in enhancing crypto tax compliance and enforcement.

These new hires come amid the IRS intensifying its focus on the crypto sector and changing rules on how digital assets are taxed.

IRS Onboards Crypto Experts for Tax and Enforcement Guidance

The first of these hires is Sulolit “Raj” Mukherjee, formerly the global head of tax at blockchain innovator ConsenSys and a key player at Binance.US.

Seth Wilks, previously the vice president of government relations and success at crypto tax software company TaxBit, was also brought on to share his expertise.

Pictured is Sulolit Mukherjee (left) and Seth Wilks (right) who recently joined the IRS to help guide crypto tax and enforcement regulations. Source: Washington College / TaxBit
Pictured: Sulolit Mukherjee (left) and Seth Wilks (right). Recent IRS hires to help guide crypto tax and enforcement regulations. Source: Washington College / TaxBit

Mukherjee and Wilks’ appointments underscore the IRS’s dedication to incorporating sector-specific expertise to navigate crypto taxation and regulation effectively.

Read more: The Ultimate US Crypto Tax Guide

“Pulling in expertise from the private sector to work with the IRS team is critical to successfully building the agency’s efforts,” commented IRS Commissioner Danny Werfel.

The agency has been putting the final touches on new regulations. These will likely affect how and to what level of detail crypto exchanges report customer transactions.

Creating Common Sense Regulations

Similarly, the United States Treasury Department is adjusting its stance on crypto transaction reporting rules. In a notable shift, businesses are temporarily relieved from the obligation to follow the stringent reporting requirements akin to cash transactions for crypto dealings.

This interim measure will persist until the formal introduction of crypto regulations.

“The Infrastructure Investment and Jobs Act revised the rules that require taxpayers that are engaged in a trade or business to report receiving cash of more than $10,000 by considering digital assets to be cash,” articulated the Treasury.

Read more: How to Reduce Your Crypto Tax Liability: A Comprehensive Guide

This adjustment reflects a broader strategy to provide a balanced framework that facilitates the growth of the crypto industry while ensuring compliance with tax obligations.

The integration of industry veterans into the IRS’s strategic planning process represents a forward-thinking approach to regulation. It hopes to develop regulations that deter financial crimes related to crypto tax evasion while also accommodating the unique characteristics of digital assets.

This collaboration will hopefully shape a regulatory environment that supports innovation while safeguarding the industry and its participants.

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Kyle Baird
Kyle migrated from the East Coast USA to South-East Asia after graduating from Pennsylvania's East Stroudsburg University with a Bachelor of Science degree in 2010. Following in the footsteps of his grandfather, Kyle got his start buying stocks and precious metals in his teens. This sparked his interest in learning and writing about cryptocurrencies. He started as a copywriter for Bitcoinist in 2016 before taking on an editor's role at BeInCrypto at the beginning of 2018.