IRS Welcomes Crypto Experts to Boost Digital Asset Oversight
In a recent announcement, the Internal Revenue Service (IRS) shared news of bolstering its capabilities in the cryptocurrency and digital assets space with the addition of two private-sector experts. Sulolit “Raj” Mukherjee, JD, and Seth Wilks, CPA, have been appointed as executive advisors to guide the agency's initiatives in the evolving digital landscape.
With a wealth of experience in both tax and crypto industries, Mukherjee and Wilks will play key roles in steering the IRS's efforts in service development, reporting mechanisms, compliance, and enforcement programs related to digital assets.
Mukherjee, previously the Global Head of Tax at a private blockchain software technology company, brings over a decade of tax executive experience and a deep understanding of crypto industry intricacies. On the other hand, Wilks, with six years in the digital asset tax policy space, focuses on tax compliance and planning issues related to multinational corporations and manufacturing.
Doug O'Donnell, IRS Deputy Commissioner, Services and Enforcement, highlighted the significance of Mukherjee and Wilks in expanding the agency's understanding of the sector and designing effective reporting systems for digital assets and related transactions.
The move aligns with the IRS's commitment to enhancing its capabilities, supported by funding from the Inflation Reduction Act. The agency is actively working on various taxpayer service and technology improvements while expanding enforcement efforts in areas of compliance concern, especially in complex, high-wealth sectors.
Digital assets are a priority focus for the IRS, with initiatives including the John Doe summons effort and the release of proposed regulations for broker reporting in August 2023. These efforts aim to address the challenges posed by the rapidly evolving global landscape of digital assets.
As part of these developments, taxpayers filing Forms 1040, 1040-SR, 1040-NR, 1041, 1065, 1120, 1120, and 1120S will now encounter a new question regarding digital assets. The question requires a simple "Yes" or "No" response, underlining the IRS's commitment to staying ahead in the dynamic world of cryptocurrency and digital assets.
Disclaimer: This article is for informational and educational purposes only and does not constitute legal tax advice. Advanced Tax Solutions is not liable or responsible for any damages resulting from or related to your use of this information. It is your responsibility to refer to official IRS documentation for information regarding any tax laws or tax information shown here.
