The Internal Revenue Service (IRS) recently hired two prominent figures in the digital asset industry. Their mission is to lead the agency’s efforts to strengthen cryptocurrency tax compliance and enforcement.
These new hires come as the IRS is increasing its focus on the cryptocurrency sector and changing the rules for how digital assets are taxed.
IRS Joins Cryptocurrency Experts for Tax and Enforcement Guidance
The first of these recruits is Sulolit “Raj” Mukherjee. He was previously Global Head of Tax at blockchain innovator ConsenSys and a key player at Binance.US.
Seth Wilks, previously Vice President of Government Relations and Success at cryptocurrency tax software company TaxBit, was also invited to share his expertise.
The appointments of Mukherjee and Wilks highlight the IRS’s commitment to integrating sector-specific expertise to effectively navigate cryptocurrency taxation and regulation.
Read more: The Ultimate US Crypto Tax Guide
“Leveraging the expertise of the private sector to partner with the IRS team is critical to the success of our IRS efforts,” said IRS Commissioner Danny Werfel.
The agency is putting the final touches on the new regulations. This may impact how and at what level of detail cryptocurrency exchanges report customer transactions.
Making Common Sense Rules
Likewise, the U.S. Treasury is adjusting its position on cryptocurrency transaction reporting rules. In a notable change, companies will be temporarily exempted from the obligation to follow strict reporting requirements for cryptocurrency transactions, similar to those for cash transactions.
This temporary measure will last until cryptocurrency regulations are officially introduced.
“The Infrastructure Investment and Jobs Act amended the rules to treat digital assets as cash and require taxpayers engaged in a trade or business to report receipt of more than $10,000 in cash,” the Treasury said.
Read more: How to Reduce Your Crypto Tax Payment: A Comprehensive Guide
This adjustment reflects our broader strategy to provide a balanced framework that fosters the growth of the cryptocurrency industry while ensuring compliance with tax obligations.
Integrating industry veterans into the IRS’ strategic planning process represents a forward-thinking approach to regulation. We plan to develop regulations that accommodate the unique characteristics of digital assets while preventing financial crimes related to cryptocurrency tax evasion.
We hope that this collaboration will create a regulatory environment that supports innovation while protecting the industry and its participants.
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