Practice Management

When it comes to the foreign earned income exclusion, a federal appeals court has upheld a ruling that Antarctica does not qualify as a foreign country.The Seventh Circuit court affirmed a U.S. Tax Court decision that the 2001 earnings of a U.S. citizen living in Ross Island, Antarctica, are subject to federal taxes.

The Internal Revenue Service announced that both its e-file and Free File programs are now accepting taxpayer returns.The agency is continuing its push to have taxpayers elect to file their returns electronically, boasting that users who e-file and choose direct deposit can receive their refund in half the normal time. All return information in protected through encryption and taxpayers will receive acknowledgement within 48 hours that the IRS has accepted the return.

The U.S. Tax Court will now require the Internal Revenue Service to file an answer in all small tax cases.The amendments to the court’s rules will apply to all petitions filed after March 13. Small tax cases are currently defined as cases where the amount of deficiency does not exceed $50,000.

Last week, it was again time for National Taxpayer Advocate Nina Olson to roll out yet another congressionally-mandated report detailing 20 of the biggest problems facing taxpayers.What’s impressive is that, for yet another year, her beefs were so fresh.

In a series of deals effective Jan. 1, LarsonAllen LLP acquired four firms, expanding its presence in Wisconsin, Minnesota and Arizona.

Business taxpayers in Illinois will be the first in the country able to pay state withholding and federal taxes at the same time, through a single system.

Oregon’s Aldrich Kilbride & Tatone LLC has increased its staff 50 percent by merging with a San Diego firm. In a separate deal, Cleveland’s SS&G Financial Services Inc. announced that it has acquired an Ohio neighbor.Financial terms of both mergers were not disclosed.

Dixon Hughes PLLC has acquired West Virginia’s Simpson & Osborne AC, while Maryland’s Katz, Abosch, Windesheim, Gershman & Freedman PA recently announced its own acquisition of Annapolis, Md.-based Siebert Kullman PA.

One of New England’s largest independent CPA firms, Carlin, Charron & Rosen LLP, has announced a pending merger with UHY Advisors.Terms of the merger, which should close May 1, were not disclosed. In May 2006, UHY acquired the Boston-based accounting firm Brown & Brown LLP, absorbing the firm’s 80 employees.

The Internal Revenue Service will begin processing both e-file and paper tax returns that include claims for the major “extender” provisions enacted by Congress on Feb. 3.