- Wilks and Mukherjee helped design crypto tax rules and led the rollout of Form 1099-DA.
- They joined a federal program that offers early exit pay and puts staff on leave.
- Their departure may affect how digital assets are tracked and taxed by the IRS ahead.
Seth Wilks and Raj Mukherjee, two senior IRS crypto officials, resigned after accepting deferred resignation offers under the DOGE program. Their departure follows a government-led reorganization effort targeting federal agencies, including the Internal Revenue Service. Both officials are said to be on paid administrative leave but will remain at the agency for several months.
They were part of a broader wave of exits triggered by the Department of Government Efficiency’s “DOGE Deferred Departure Plan.” The program, launched earlier this year, has enrolled over 20,000 IRS employees. Their resignations mark a pivotal moment in U.S. digital asset regulation.
Top Crypto Experts Step Down
Seth Wilks and Raj Mukherjee joined the IRS in 2024 from leading crypto firms. Wilks served as a vice president at TaxBit. Mukherjee held senior roles at Binance and ConsenSys. At the IRS, they were appointed to drive digital asset taxation and compliance policy.
Under Wilkes’s leadership, the digital asset strategy and development were framed, while Mukherjee oversaw the division of digital assets. These efforts contributed to truly shaping the IRS’s approach in matters pertaining to cryptocurrencies. This includes Form 1099-DA, which was released last summer and endeavored in improving U.S. taxpayers’ reporting mechanics for tax liability on cryptocurrency.
They were also instrumental in the formulation of the tax regulations applicable to decentralized finance brokers. One rule was finalized under Biden, which required brokers to collect user data. That rule was later revoked by Congress in 2025 with a joint resolution signed by President Trump.
DOGE Plan Sparks Controversy
Federal employees are to be encouraged to exit the system early as the DOGE scheme provides early exit incentives. Agencies have both supporters and critics of the program. Officials say it increases efficiency, while its opponents say it sacrifices regulatory capacity.
Mukherjee and Wilks’s departures add to growing concern about federal oversight of digital assets. Their exit leaves a gap in IRS leadership during a time of increasing crypto market activity. According to the New York Times, more than 20,000 IRS staffers signed up for DOGE-related early resignations last month.
Besides regulatory gaps, opponents also worry about DOGE’s implications for data privacy. There are allegations that taxpayers will be granted wider access to data and that fewer experienced manpower will be hired. Hence, market participants in crypto are very attentive to these developments, which might have an impact on investor confidence.
Related: Coinbase Takes Stand on Crypto Privacy in IRS Data Case
What Comes Next for Crypto Oversight?
The DOGE plan’s impact continues to ripple across Washington. The resignations raise a key question: Can effective crypto regulation survive mass departures?
Federal officials have not announced replacements for Wilks or Mukherjee. Moreover, the IRS has not commented on how it plans to sustain its crypto initiatives amid the shakeup.
Significantly, DOGE’s influence is rising. Observers say the plan may cause more exits if Trump-era efficiency mandates persist. Hence, uncertainty remains about the direction of crypto policy enforcement.
