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IRS Hires Binance.US and TaxBit Execs to Regulate Taxation

source-logo  coinedition.com 28 February 2024 08:17, UTC

In a strategic move to enhance its presence in the digital asset sector, the Internal Revenue Service (IRS) has enlisted the expertise of two seasoned digital-asset executives, signaling a proactive approach toward crypto compliance and enforcement.

Sulolit “Raj” Mukherjee, former global head of tax at blockchain software company ConsenSys and a previous contributor at Binance’s US unit, has been appointed as an adviser to the IRS. Joining Mukherjee is Seth Wilks, the recent vice president of government relations and success at TaxBit, a prominent crypto tax software firm.

Both executives are set to play pivotal roles in steering the agency’s efforts in crypto compliance and enforcement, according to a report from Bloomberg, citing a statement released by the IRS.

While the prices of cryptocurrencies continue to surge, the IRS is gearing up to implement final regulations that will mandate crypto brokers, including exchanges, to furnish detailed information on their clients’ transactions to the U.S. government.

This move is part of the IRS’s broader strategy to address the surge in cases related to crypto tax evasion, which has posed new challenges for the agency’s unit responsible for investigating financial crimes.

IRS Commissioner Danny Werfel emphasized the significance of incorporating private-sector expertise, stating,

Pulling in expertise from the private sector to work with the IRS team is critical to successfully building the agency’s efforts involving digital assets and helping us do it in a way that works well for everyone.

While the US is currently trying to introduce a framework for digital asset taxation, South Korea’s ruling People Power Party has proposed postponing the taxation on crypto investment gains.

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