Trish Turner, who led the IRS's digital assets office, has departed, coinciding with the implementation of new tax regulations demanding greater accountability from crypto investors.
Trish Turner's Departure and Its Implications
Trish Turner has decided to transition to the private sector, leaving the IRS crypto office without clear leadership amid impending significant tax changes. She follows the exits of other crypto heads, Seth Wilks and Raj Mukherjee, who left their positions earlier this year. It remains unclear who will temporarily fill this role.
New Tax Forms for Crypto Investors
One of the main changes is the new 1099-DA form that millions of investors will receive from their crypto brokers. Approximately three million filers have already reported making crypto trades, although experts see this number as low. Now, with new regulations taking effect, many more individuals are expected to disclose their crypto activity.
Uncertainty in Crypto Tax Compliance
For years, crypto investors and businesses have faced uncertainty regarding U.S. taxes, as there has been no clear third-party documentation. The new 1099-DA forms will begin to flow from accounts at companies like Coinbase and Kraken, putting additional pressure on investors to calculate and disclose their tax positions. However, Congress recently overturned an IRS measure that would have classified some DeFi platforms as brokers, leaving tax treatment for that part of the market unclear.
Trish Turner's departure and the introduction of new 1099-DA forms represent significant changes for crypto investors in the U.S. The ongoing lack of clarity in tax compliance further complicates the situation, requiring investors to approach their tax obligations with greater diligence.
