The U.S. Internal Revenue Service (IRS) faces a leadership crisis as Trish Walker, chief of the IRS digital assets office, departs shortly after taking her position, joining two other officials who have left for the private sector. This departure comes at a critical time when new tax policies are expected to generate millions of crypto-related filings. Despite the anticipation of friendlier tax provisions for crypto, Congress has yet to implement any significant changes. The existing regulations require taxpayers, including those who previously did not report digital asset income due to confusion, to submit new forms such as the 1099-DA. Concurrently, the IRS is undergoing budget cuts resulting in personnel reductions, including over 20,000 employees possibly affecting its capability to manage the anticipated surge in filings. As experienced staff exits, taxpayers might encounter difficulties accessing customer service or guidance regarding crypto taxes at the IRS, setting the stage for a potential workload crisis amidst a lack of leadership in this growing sector of the U.S. tax system.

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