November 2021
1995
The Firm moves to Fairfax, VA, and also establishes a satellite office in Washington, DC. Bob Len is appointed to the role of Treasurer with British American Business Association (BABA), a role he will retain for years thereafter.
Mid-1990s
The Firm establishes a new program, Diversus, providing profitability consulting services to international businesses.
1989
The Wolf Group could be seen at various international organizations in the U.S. and abroad speaking on the topics of tax compliance and tax planning for foreign nationals living in the U.S. and Americans abroad. The Wolf Group is now considered the premier Washington, DC-based CPA firm specializing in international and expatriate tax.
1988
Bob Len joins as a staff accountant, becoming a minority partner of the firm 2.5 years later. His equity interest grows over the years. The Firm also moves to an office in Merrifield, VA.
Mid-1980s
Len Wolf develops a close working relationship with the in-house counsels at the IMF and the World Bank. We soon developed specialized expertise in international organization employee and retiree tax matters.
Early 1980s
The Washington, DC area’s growing telecom sector was attracting global corporations from Western Europe, Asia, and elsewhere. Several of these firms would become the first of many multinational corporations served by The Wolf Group.
1983
Len Wolf founded the Firm in Falls Church, VA.
October 2021
How To Get IRS Help Faster amid Ongoing COVID-19 Delays
As of mid-2021, if you called the IRS, your chances of getting through to a live person were only about 7%. The IRS has not been able to adequately staff its phone lines or keep up with call volume for several reasons: IRS funding has been paltry for the past decade, affecting its ability to staff phone lines and fulfill other critical functions. The IRS phone lines were largely shut down for months during 2020, while IRS offices were closed due to COVID-19. Since the lines have reopened, they’ve been flooded with requests. The IRS has still not recovered from the significant mail backlog it amassed in 2020 during COVID-19 shutdowns. Call volume has been high, with taxpayers trying to get status updates on the 10 million tax returns the IRS has not yet processed, and other issues resolved. In 2021, the IRS has had to adjust quickly to help roll out additional stimulus payments, adjust the taxability of unemployment compensation, and issue new child tax credit payments. These changes both strained IRS staffing and further boosted call volume. So, how do you get IRS help? Pre-pandemic, phone and mail were the best ways to get through to the IRS. Now, that’s no longer the case. And it doesn’t look like the phone and mail situation will improve until mid- to late 2022 at the earliest. So, until the IRS resolves its mail processing and call backlogs, you have several other options: 1. Set up an online IRS account. You can actually get answers to many of your questions online without having to call the IRS. In 2016, the IRS launched online accounts. Once you confirm your identity and set up your account, you can access information on tax payments you’ve made, amounts you owe, payment plan options, pending transactions, and tax records. You can also make payments online, set your email preferences, and obtain various transcripts. If you received an IRS tax notice, you can access information via your account to help explain the notice. Often, the first step in responding to a tax notice is to view the IRS’s official record of your tax situation, an account transcript, to help clarify what’s going on. You can request an account transcript via your online account. If you prefer to have your tax professional assist you in understanding and responding to IRS tax notices, you can also use your online account to authorize your tax preparer to access your transcripts. This saves valuable time and helps minimize tax professional fees. Want more information? Check out the IRS’s 1.5-minute YouTube video explaining how to set up your online IRS account. 2. Use the IRS’s new online system to authorize your tax professional to speak with the IRS on your behalf. For privacy reasons, the IRS will not speak with anybody other than you about your tax situation, including your tax preparer! However, you can authorize your tax professional to speak with the IRS on your behalf. To do so, you must [...]
11 Years Is Too Long To Wait for Mental Health Treatment
Yes, we are a tax firm. But this blog post has nothing to do with taxes. It is about a topic that is much more important. October 10 is World Mental Health Day, and mental health affects us, our employees, our clients, and our loved ones. And especially now, as the pandemic persists, we believe it’s important to share an update on mental health challenges and recent developments that give us hope for the future. Did you know that¹ ... 1 in 5 US adults experiences mental illness each year. 5% of US adults experienced serious mental illness in 2019. 17% of youth (aged 6 to 17) experience a mental health disorder. Suicide is the 2nd leading cause of death for people aged 10 to 34. The suicide rate has increased 35% since 1999. The average delay between symptoms onset and treatment is 11 years. 55% of adults with a mental health diagnosis did not receive treatment or counseling in the past year. At least 8.4 million people in the US provide care to an adult with a mental or emotional health issue. 70% of youth in the juvenile justice system have a diagnosed mental illness. Anxiety disorders and major depressive episodes affect 27% of US adults annually (68 million people). Modern therapeutic practices, often augmented with new and effective pharmaceuticals, are typically extremely effective! Most of us are in tune with our physical health. We know when we break a bone or tear a tendon. We’re familiar with the pain of a migraine headache or a serious cut. And we certainly react and respond to a critical diagnosis from a cardiologist, neurologist, or oncologist. With each of these primary care conditions, we immediately seek treatment. So why is it that the average delay between the onset of mental health symptoms and treatment is 11 years? The answer lies in the challenges of seeking treatment for mental health conditions: 1. Stigma: Many of us are hesitant to disclose that we are suffering from a mental health condition even though its prevalence is widespread. We may think it will make us seem weak or vulnerable. We may fear that others will exaggerate our condition or use it against us (even if they don’t mean to). Often, we fear they won’t understand. HOPE – Fortunately, times are changing and many more of us are less hesitant to discuss our mental health concerns. Some tell us that many celebrities feel undeserving of their status if they do NOT see a psychologist regularly! 2. Financial: The demand for mental health professionals’ services is up significantly (even more so after COVID), while the number of providers is shrinking. The imbalance between supply and demand for services, the overall upward pressure on medical care in general, a lack of adequate and affordable health care insurance, and limited availability of safety net programs all contribute to making mental health care unaffordable to many. HOPE – In recent years, state and federal legislation has mandated that mental health [...]
August 2021
IRS is advised to reconsider creating amnesty program for cryptocurrency.
Practitioners suggest that the IRS should reconsider its position on having a voluntary disclosure program for cryptocurrency. “I think the IRSwould be remiss if it didn’t go back and look at that again,” Mishkin Santaof the Wolf Group PC said on an August 24 webinar hosted by the District of Columbia Bar Taxation Community.
2021 WGCA Client Tax Return Engagement Letter
Dear Client: We look forward to providing you with tax return preparation services this year! The purpose of this letter and attached “Additional Engagement Terms” is to specify the terms of our engagement and clarify the nature and extent of the services we will provide. This way, you know what to expect from us, and we can endeavor to delight you with high-quality, seamless services. We strive to make our tax return process as straightforward and convenient as possible for you. Our goal is to minimize any hassle on your end while also making things as efficient as possible on our end. This allows us to deliver your returns expediently, while also bringing to bear a high level of technical expertise and personal service. It also helps us keep our costs down for all clients. Returns Covered under the Engagement With this letter, you are engaging us to prepare your 2021 U.S. and state individual income tax returns. We will do so with the information you furnish to us in the process described below. If you have taxable income or loss in a state or locality other than your resident state, please let us know, and we would be pleased to prepare the required nonresident state tax return(s). In addition, you may have a filing requirement or tax liability in a foreign country. Generally, you are responsible to determine whether you must file and pay taxes in a foreign country; however, upon request, we would be pleased to assist you in making these determinations. We will not prepare any tax returns other than those identified above, without your written request, and our written consent to do so. We will prepare the above-referenced tax returns solely for filing with the Internal Revenue Service (“IRS”) and applicable state and local tax authorities. Our work is not intended to benefit or influence any third party, either to obtain credit or for any other purpose. You agree to indemnify and hold us harmless with respect to any and all claims arising from the use of the tax returns for any purpose other than filing with the IRS, state and local tax authorities regardless of the nature of the claim, including the negligence of any party. This engagement is limited to the professional services outlined above. Dependent or Minor Children Tax Returns In some cases, a dependent or minor child under your care and supervision may be required to file a U.S. and/or state income tax return and/or international informational report (example: FinCEN Form 114 (FBAR)). Generally, this is a service for which we will provide under this Engagement as a “dependent tax filing” billed based on our most current standard tax preparation fee schedule. However, in some circumstances we may require that an additional engagement letter be completed by the you, the parent or guardian. We will notify you if we determine this to be required. Information Gathering and Submittal Process You are responsible for fully and accurately disclosing to us all relevant [...]
US Senate passes bill that expands cryptocurrency reporting requirements.
The Senate votes 69-30 to advance the Infrastructure Investment and Jobs Act (H.R. 3684). The bill contains Section 80603, which would broadly expand information reporting requirements and the definition of broker for certain cryptocurrency providers. The bill largely follows the Treasury proposals from May 2021.
US lawmakers seek an expanded definition of “broker.”
Bipartisan co-chairs of the Blockchain Caucus send a letter to the House of Representatives asking them to take up the issue of the expanded definition of “broker” under Section 80603. The letter states that noncustodial blockchain technology providers like validators and software developers are not middlemen between parties to exchange, do not have customers, and have no way to collect this information. As a result, the requirements of Section 80603, as currently drafted, could drive blockchain software development, cryptocurrency mining, and similar opportunities out of the United States.
June 2021
IRS asserts that like-kind exchange rules cannot be applied to cryptocurrency trades.
The IRS issues IRS Legal Memorandum 202124008 and asserts that Bitcoin-Ether trades and swaps of either currency for Litecoin were not eligible for Section 1031 like-kind exchange treatment before the Tax Cuts and Jobs Act of 2017 restricted that provision to real property.
US lawmakers seek changes to tax form for charitable contributions of cryptocurrency.
A bipartisan group of seven lawmakers asks the IRS to amend Form 8283 so that a taxpayer making a charitable contribution using cryptocurrency can report the donation value under Section A as they would do for securities or other assets with readily ascertainable price indexes.
El Salvador passes law to make Bitcoin legal tender.
El Salvador’s Legislative Assembly passes a bill making it the first country to classify Bitcoin as legal tender.
IRS discloses use of special team to address cryptocurrency tax noncompliance.
IRS Fraud Enforcement Office Director Damon Rowe notes his office’s use of an emerging threat mitigation team to investigate cryptocurrency tax noncompliance.
May 2021
US proposed tax law changes include reporting of cryptocurrencies on FBAR-like form.
The US Treasury releases the “Green Book,” which contains several proposals related to cryptocurrency broker rules and a cryptocurrency “FBAR” that individuals would have to report.
Australian tax authorities announce plan to contact cryptocurrency owners.
Australian tax authorities say they will contact 100,000 taxpayers who held cryptocurrencies in prior years because many of them mistakenly believe that gains on cryptocurrency sales are tax free or taxable only when cashed in.
