Elon Musk’s DOGE, the Department of Government Efficiency under President Donald Trump, has led to the exit of two of the IRS’s top crypto directors.
Seth Wilks and Raj Mukherjee, both brought in to modernize the agency’s crypto tax compliance strategies, were placed on paid leave and told to accept deferred resignations. Their removal is part of a larger restructuring effort across the federal government.
Crypto Policy Experts Exit IRS
Wilks and Mukherjee were appointed in February 2024 to help overhaul how the IRS handles crypto taxation and enforcement. Both officials had extensive private-sector experience before joining the IRS. Wilks served as a vice president at TaxBit, while Mukherjee held senior tax roles at Binance.US and ConsenSys. At the IRS, their most prominent contribution was developing the 1099-DA tax form designed for crypto-related income reporting.
The two officials also helped finalize a rule requiring significant data collection for DeFi brokers. That rule, passed under the Biden administration, was later revoked by the Trump administration using the Congressional Review Act. The reversal signaled a broader policy shift being driven by DOGE.
DOGE Restructures IRS Workforce
As part of its workforce modernization initiative the DOGE directive functions alongside other reforms. Something over 20,000 IRS workers have taken advantage of the voluntary separation packages that grant them paid vacation through September. Before more extensive job cuts took place Wilks and Mukherjee became two of the most senior crypto officials to choose voluntary departure. The agency was responsible for managing all aspects related to digital asset reporting and monitoring compliance while working with cryptocurrency companies.
A Treasury spokesperson confirmed that the department is focused on trimming excess staffing inherited from the previous administration. The IRS had been expanded under President Biden with the aim of increasing tax revenue collection. That approach is being reversed under Trump’s leadership, with emphasis placed on efficiency and reduced headcount.
IRS Faces Leadership Shake-Up
The exits extend beyond the crypto division. Melanie Krause, the IRS’s acting commissioner, also left, along with several senior staff. Their departures followed a controversial policy change requiring the IRS to share taxpayer information with Immigration and Customs Enforcement. That decision caused unrest within the agency, traditionally known for its confidentiality rules.
The Trump administration demonstrates a fundamental transformation of federal cryptocurrency policies and personnel establishment. DOGE implements a new tactic for government regulation and resource management through its ongoing administrative reforms.