IRS Crypto Chief Resigns After Just Three Months: What It Means for Tax Oversight

A Sudden Exit at a Crucial Time

Trish Turner, a veteran IRS official, has resigned from her role leading the agency’s digital assets division—after just over three months in the position. In her departure message, she reflected on her 20-plus year career and the work done to transition crypto oversight from niche to mainstream.

Her next move is into the private sector, where she will become tax director at Crypto Tax Girl, a growing crypto tax advisory firm. The announcement underscores the increasing demand for experienced compliance professionals as the industry braces for new regulatory headwinds.

Why This Departure Matters

Turner’s resignation comes at a critical juncture. The IRS is preparing for a wave of changes in digital asset tax policy, including the rollout of the new 1099-DA reporting requirement. This form will significantly increase the number of taxpayers who receive formal crypto tax statements, putting pressure on both the IRS and crypto service providers.

At the same time, the agency has been struggling with budget cuts and leadership turnover. Staffing has dropped sharply from over 113,000 to around 76,000 employees in recent years, straining its ability to enforce compliance. Leadership departures like Turner’s risk further delays in policy rollouts and weaken continuity at a moment when clarity is badly needed.

The Crypto Tax Pressure Cooker

Several dynamics amplify the significance of this exit:

• 1099-DA Form Launch: Millions of taxpayers are expected to receive new digital asset tax statements in 2025, making this one of the largest expansions of reporting obligations in crypto’s history.

• Staffing Constraints: Reduced headcount makes it difficult for the IRS to keep pace with both traditional tax enforcement and emerging asset classes like crypto.

• Regulatory Flux: With shifting political winds, from debates over DeFi reporting to oversight reforms, the rules themselves remain in flux, complicating enforcement.

Industry Reactions and Opportunities

Turner’s move reflects a growing trend: regulators and policymakers leaving public service to join private sector firms that specialize in crypto compliance. Industry players have welcomed the transition, noting that her expertise will help bridge the widening gap between taxpayer obligations and the practical realities of crypto reporting.

Some industry voices even framed the resignation with a touch of humor, describing Turner’s shift from regulator to private advisor as moving from the “dark side” to becoming a “crypto Jedi.” Beyond the jokes, the trend is clear—firms are racing to bring regulatory know-how in-house, anticipating the growing complexity of tax law around digital assets.

What Comes Next for IRS Oversight?

With Turner gone, several open questions loom:

• Leadership void: How quickly can the IRS fill the role, and will the new appointee bring continuity or pursue a different agenda?

• Policy rollout: Will the 1099-DA launch stay on schedule, or will delays surface as priorities shift?

• Industry impact: How will crypto exchanges, DeFi platforms, and individual taxpayers adjust if enforcement timelines wobble?

For now, the IRS continues to emphasize its commitment to digital asset oversight, but the departure highlights the challenges of executing that mission during a period of high turnover and limited resources.

Conclusion

Trish Turner’s resignation after just three months leading the IRS digital assets division is more than a staffing change—it is a moment that could reshape how crypto taxation is managed in the U.S. As she transitions into the private sector, the IRS faces the challenge of carrying forward ambitious tax reforms without her leadership.

Whether the agency can maintain momentum on digital asset enforcement or stumbles under resource pressure will set the tone for crypto taxation in the years ahead.