The Internal Revenue Service (IRS) has appointed Trish Turner, a 20-year veteran of the agency, as the new head of its digital assets division.

The leadership change comes just as the IRS faces internal upheaval and external criticism over its crypto enforcement strategy.

The move follows the quiet exit of two private-sector experts, Sulolit “Raj” Mukherjee and Seth Wilks, who had been brought in to co-lead the agency’s Office of Digital Assets.

With over 23,000 IRS employees reportedly exploring the option to leave their roles amid ongoing policy uncertainty under the second Trump administration, the agency’s crypto enforcement roadmap appears to be at a crossroads.

Mukherjee and Wilks joined the IRS in early 2023 to help design and implement the agency’s evolving digital assets compliance programme.

Mukherjee served as executive director of compliance and implementation, while Wilks was executive director of digital asset strategy and development.

Their departures were confirmed via Bloomberg and LinkedIn, respectively, although neither individual publicly stated the reason for their exit.

Trish Turner, who had worked as a senior adviser in the Digital Assets Office, will now lead the team as it navigates growing industry scrutiny and policy friction.

Her appointment comes at a time when the IRS is tasked with implementing new rules for crypto brokers, while simultaneously responding to internal workforce challenges and a changing political environment.

The IRS has been expanding its oversight of crypto activity in recent years, launching criminal investigations into tax evasion and pushing for greater reporting transparency.

In 2024, it introduced new broker reporting rules intended to cover exchanges, wallet providers, and other intermediaries in the digital asset ecosystem.

However, these rules have faced backlash from both industry groups and lawmakers, who argue that the definitions are too broad and could impact decentralised protocols or non-custodial services.

While the IRS maintains that the new framework is essential for closing the tax gap, critics claim it could stifle innovation and push businesses offshore.

Turner now inherits the responsibility of balancing enforcement with stakeholder engagement, as the IRS continues to field comments on the scope and execution of these reporting requirements.

Turner’s appointment also coincides with early signs of a shift in Washington’s crypto policy direction.

The second Trump administration, which took office in January 2025, is widely expected to take a more favourable approach to digital assets.

This political transition has already impacted the IRS workforce.

More than 23,000 employees at the agency have reportedly expressed interest in resigning under a deferred option programme recently reintroduced by the administration.

While not all of these will translate into confirmed resignations, the figure points to significant internal uncertainty.

The deferred resignation option allows eligible staff to opt into a separation plan that delays their departure, giving the administration flexibility while also enabling the IRS to reassess its staffing and operational focus during a time of transition.

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