To bolster its understanding and regulation of the burgeoning cryptocurrency and digital assets sector, the Internal Revenue Service (IRS) has enlisted the expertise of two seasoned professionals from the private sector. Sulolit “Raj” Mukherjee, JD, and Seth Wilks, CPA, have joined the IRS as executive advisors, bringing a wealth of experience in taxation and the crypto industry.
Commissioner Danny Werfel highlighted the significance of this move, emphasizing the complexity of the digital assets realm and its profound implications for tax administration. Werfel stressed the importance of leveraging external expertise to ensure effective and equitable regulation that benefits taxpayers and the nation.
With over a decade of experience in tax compliance and financial institution reporting, Mukherjee brings invaluable insights to the IRS, including extensive involvement in the crypto industry. His prior role as Global Head of Tax at a private blockchain software technology company underscores his deep understanding of the intersection between taxation and digital assets.
Wilks, having dedicated six years to digital asset tax policy, complements Mukherjee’s expertise with his background in tax compliance and planning for multinational corporations. His focus on complex supply chains and cross-border transactions equips the IRS with essential skills in navigating the intricate landscape of digital asset taxation.
According to Doug O’Donnell, IRS Deputy Commissioner for Services and Enforcement, adding Mukherjee and Wilks enhances the agency’s capacity to develop robust reporting systems for cryptocurrency and digital assets. O’Donnell emphasized the IRS’s commitment to adapting to the rapidly evolving global landscape and prioritizing compliance in emerging areas.
Funded by the Inflation Reduction Act, the IRS is undertaking various taxpayer service and technology enhancements while intensifying enforcement efforts in high-wealth areas with compliance concerns. Notably, the agency directs significant attention towards digital assets, leveraging tools like the John Doe summons and proposed broker reporting regulations to bolster enforcement and compliance measures.
A digital asset encompasses various forms of value recorded on cryptographically secured ledgers, including convertible virtual currency, cryptocurrency, stablecoins, and non-fungible tokens (NFTs). As part of IRS efforts to enhance tax compliance, all individuals filing relevant tax forms must now indicate whether they have engaged in transactions involving digital assets, underscoring the growing importance of regulatory oversight in this space.
This move by the IRS reflects its commitment to staying abreast of technological advancements and underscores the importance of collaboration between government agencies and the private sector. For self-employed individuals and entrepreneurs navigating the digital asset landscape, the IRS’s enhanced focus on compliance and regulation provides clarity and ensures a level playing field for all taxpayers.
Source (IRS News).
