Trish Turner’s quick exit from the IRS’s cryptocurrency team has everyone wondering about the future of crypto tax enforcement in the US. After only three months on the job, she left a 20+ year career at the IRS.
What Does Her Resignation Mean?
Turner says she’s excited to continue her work “from a new vantage point,” focusing on building bridges between the crypto industry and regulators. She’s joined Crypto Tax Girl, a crypto tax firm, as their tax director. This move highlights the high demand for government experts in the private sector.
A Pattern of High Turnover
Turner isn’t the first high-ranking official to leave the IRS crypto unit quickly. Two previous leaders also left after about a year. This constant turnover raises concerns about leadership stability, especially with Congress pushing for clearer crypto tax policies and better enforcement. Hearings are planned to address this very issue.
Political Pressure and Oversight
The pressure on the IRS to handle crypto taxes is intense. Recently:
- A Biden-era rule requiring some DeFi platforms to report transactions to the IRS was reversed.
- The Treasury Inspector General found flaws in how the IRS handled crypto-related criminal investigations.
- There were proposals to cut the IRS workforce by 20%, potentially impacting their ability to deal with crypto tax issues.
Industry Reactions and the Road Ahead
Economist Timothy Peterson jokingly called Turner’s move a transition from the “Dark Side” to becoming a “Crypto Jedi Knight,” highlighting the trend of regulators moving to private firms to help companies navigate the complex world of crypto taxes. This means better expert advice for taxpayers and businesses, but a tougher challenge for the IRS in retaining its knowledge base.
The IRS hasn’t announced a replacement for Turner yet, but with upcoming hearings and recommendations for reform, the agency’s work on crypto taxes will continue. How quickly they find a new leader and keep experienced staff will be crucial.