KING'S COLLEGE

ACCT. #420 - Federal Taxation

Course Syllabus

Spring, 2005

Professor:Barry H. Williams, JD, MBA, MT, CPA

Professor of Accounting

Office:McGowanSchool of Business: Room #115

Office Hours:Tuesday, Thursday 1:00 – 2:00 PM

Tuesday, Thursday 3:15 – 4:15 PM.

Monday 3:30 -4:30 PM

Other times by appointment.

Telephone:(570) 208-5900, Ext. 5699

E-mail:

Required Texts:CCH Federal Taxation - Basic Principles, 2005 Edition

ISBN: 0-8080-1122-7

Course Objectives

1.To develop an understanding of the environments surrounding the creation and change of tax laws.

2.To develop an understanding of the sources of tax law, their interpretation and how to access those sources.

3.To develop a working knowledge of the taxation of individuals including the determination of income and deductions, tax credits and the tax calculation.

4.To develop an awareness and working knowledge of how technology can facilitate tax research, tax projections and preparation of tax returns.

5.To review the similarities and differences in the taxation of individuals, partnerships and corporations.

6.To increase the awareness of the relevance of society upon taxation and the ethical responsibilities of tax professionals.

COURSE PROCEDURES

Student Responsibilities:

1.Attendance in Class. Accounting courses are problem oriented and require review and reinforcement which can only be achieved through attendance in class. Absences in excess of three hours of class time will result in a reduction of your final course grade by one point for each one-hour of excess absence up to a maximum reduction of 5 points.

2.Homework. Timely completion of homework assignments is necessary to keep pace with the flow of coursework. Homework assignments will be collected on a regular basis and will be used in determining the final course grade. Failure to turn in assigned homework, late homework, and failure to prepare class assignments on a timely basis can result in a reduction of your final course grade up to a maximum reduction of 5 points.

3.Class Participation. The free interchange of ideas, questions and concerns is a major part of the learning process and is required. Participation in class discussion will affect your final course grade.

4.Resource Chapters. It is the student's responsibility to read the material assigned prior to class. This is difficult reading and the student should be prepared to read the material more than once.

5.Examinations. Exams will be given outside of class (late Afternoon). Evening section exams will begin at 5:30 p.m. and be followed by class. Make-up examinations will only be given with prior permission of the instructor. Failure to notify the instructor prior to the exam will result in a grade of Zero. For each examination students will be permitted to bring one sheet of 8 ½ X 11 paper with handwritten notes and outlines prepared by the student, however, no photocopies, typewritten or computer prepared notes will be permitted.

6. Accommodations for Special Needs Students. All students who have a learning disability or a physical handicap should schedule an appointment with the instructor during the first week of class to discuss accommodations for the classroom and/or assignments and/or examinations.

Grade Computation:

Your grade will reflect your overall class performance as measured by attendance, participation, homework and testing. You will be required to demonstrate your learning through three examinations.

The final course grade will be computed as follows:

Three Exams – Weighted Equally 80 pts.

Computer Generated Tax Returns 10 pts.

Writing Assignment – Assignment II 10 pts.

Total100 pts.

Letter grades are based upon the following numerical equivalents:

A / = / 95 / To / 100
A- / = / 92 / To / 94
B+ / = / 89 / To / 91
B / = / 85 / To / 88
B- / = / 82 / To / 84
C+ / = / 78 / To / 81
C / = / 73 / To / 77
C- / = / 70 / To / 72
D / = / 65 / To / 69
F / = / Below / 65
EFFECTIVE WRITING COMPETENCY

A. Effective Writing Objectives:

  1. Write a business letter articulating the results of research upon an issue.
  2. Organize materials into facts, issues, rules, analysis and conclusion.
  3. Each student will be able to locate in the library the tax reference services and tax publications.
  4. Students using these reference sources and a fact pattern supplied by the instructor will formulate the tax issues involved, locate appropriate references from library resources and write a letter of conclusion to the instructor.

B. Strategy – Assignment II – Tax Research Project Format

a. Fact pattern to be researched and reported upon will be given. The fact pattern will be based upon one of the assigned computer generated tax return problems.

b. Derive the issues. The starting point in any tax research project is identifying the issues to be researched. Once research into an issue commences the issue can be refined in order to answer the tax-related inquiry. Issue recognition is an essential portion of the research. Never assume, use the facts!

c. State both sides of the issues and give substantial authority on for both sides should it exist or if it does not state such.

d. Report to be written in the format of a letter to a client. The letter should be organized to include: (1) Facts; (2) Issues; (3) Applicable rules; (4) Analysis of the issues, rules and facts; and (5) Conclusion and recommended actions.

e. Include appropriate code sections, regulations and any other substantial

authority used. Non-authoritative sources should be listed, but not relied upon

entirely. Say "I.R.C. Section # ______pertaining to ______" when

citing authority.

C. Assessment Criteria:

The letter prepared shall be mailed via the U.S. Mail to the instructor at the College address. Grading will be based upon the following:

Appearance 10%

Issue Recognition 30%

Support for Conclusion 30%

Clarity and Style 30%

Total100%

Assignment Due Date: The assignment shall be postmarked no later than the Friday proceeding the last week of class.

BUSINESS CURRICULUM CONTENT AND COVERAGE
CURRICULUM

COVERAGE

GLOBAL ISSUES

/

Global issues related to the taxation of worldwide income are introduced to the student by the study of gross income. The foreign tax credit is used as a vehicle to demonstrate how tax credits differ from tax deductions.

ETHICAL ISSUES

/

Students prepare an opinion letter on a tax related issue using situations which require the student to make a value judgment. The student will be required to address the results of the failure to comply with applicable Internal Revenue Code requirements in an opinion letter related to an assigned topic.

POLITICAL, SOCIAL AND LEGAL ISSUES

/

Students are introduced to the influence societal, political and social issues upon the tax laws through discussion of why provisions both exist and are changed in the Internal Revenue Code.

REGULATORY AND ENVIRONMENTAL ISSUES / Students learn the role of the Internal Revenue Service in the regulation and administration of the tax laws in the United States.
TECHNOLOGICAL ISSUES / Students learn to prepare tax returns utilizing commercial tax preparation software and to research tax issues utilizing on-line databases.
DIVERSITY ISSUES / Students learn the social policies which underlie many of the changes in the tax law through discussion during the study of the related tax topics. Such diversity issues as single parents are discussed in light of the social policy implications of the tax laws.

TECHNOLOGY COMPETENCY GROWTH PLAN

A.Computer Competency Objectives

File Management Learning Outcomes

  • Students will adapt to multiple year’s files and the ability to update data utilizing prior years information.
  • Students will convert data between formats.
Windows Learning Outcomes
  • Students will utilize Help functions to obtain answers to computer application questions and substantive accounting issues.
  • Students will move within open windows while working within computer application assignments.
Word Processing Learning Outcomes
  • Students will utilize wizards to prepare business letters.
  • Students will formulate outlines and generate results of research utilizing word processing.
  • Students will modify their results of previously prepared letters to update for critiques of their work.
  • Students will prepare computer-generated envelopes and labels for mailing.
Database Management Learning Outcomes
  • Students will formulate a research need, outline key issues, generate a search query and critique the result of the search.
Data Communications Learning Outcomes
  • Students will obtain and download data in PDF and other formats from the Internet.
  • Students will obtain both facts and theories from the Internet and incorporate these into a structure for presentation to a group.
  • Students will transmit information to both the instructor and other students utilizing data communications methods within the network and over the Internet.
Cyberethics Learning Outcomes
  • Students will explore ethical issues in accounting which include the use of information posted on the Internet.
  • Students will be able to access the validity and reliability of Internet sites.
  • Students will use proper citation formats for information obtained from the Internet.
B. Strategy
  • The student will use On-Line Databases to research a tax related ethics assignment and write an opinion letter in appropriate format.
  • The student will be assigned tax return preparation problems requiring a building block approach.
  • The student will be required to search the Internet for Internal Revenue Code and Regulations and obtain from the IRS Home Page tax forms and instructions, IRS Publications and Internal Revenue Service news releases and information.
  • The student will be required to search the Internet and locate a tax-related site. The student will analyze and prepare a written report assessing the site.
C. Assessment Criteria

Assignment I – Preparation of Computer Generated Tax Returns

  1. Has the student correctly calculated the tax liability for problems assigned.
  2. Is the student preparing and submitting only required tax forms and schedules.
  3. The student will be required to take an in-class tax return preparation problem to assess the level of understanding of tax return preparation software.
  4. Assignments will be distributed by the professor for completion using software available on the College computer network.

Assignment III – Locate Tax Forms on the Internet

  • Assignment Due: Second Tuesday of class for day sections and the second class meeting for evening school students.
  • Each student shall locate the Web site for the Internal Revenue Service and within the site access tax forms, publications, news releases and other tax related topics. Upon locating the site each student shall print and bring to class at the assignment due date the following forms and schedules.

Form 1040

Schedule A

Schedule B

Schedule C

Schedule SE

Schedule D

  • Prior to the coverage of Chapter 6 each student will be responsible for locating Internal Revenue Service Publication 946 – How To Deprecate Property. Each student shall download and print Appendix A and Appendix B prior to the first class meeting in which Chapter 6 is discussed. Do not print the entire publication!!

Chapter and Homework Assignments

Week / Chapter / Topic/Paragraphs / Chapter Assignment / Turbo Tax
1 / 1 / 1131
1179 - 1195
1 / 2 / 2001 - 2055
2075
2135
2301 – 2370
2375 / 45, 46, 48, 55, 56, 57, 58, 59, 60, 61
2 & 3 / 3 / Individual Taxation - An Overview / 35, 40, 50, 51, 53, 54, 56, 57, 58, 59 / 1A
3 & 4 / 8 / Deductions: Itemized Deductions / 24, 25, 26, 28, 29, 34, 35
3 & 4 / 15 / 15,501 – 15,605
3 & 4 / 9 / 9001 – 9015
9031 – 9033
9035
9105 – 9165
9401 - 9475 / 40, 44, 49, 57
Examination 1
5 / 4 / Gross Income / 23, 25, 27, 32, 42, 43, 44, 45, 46, 47, 48 / 1B
5 / 5 / Gross Income: Exclusions / 20, 30 37, 40, 41, 43, 45, 46, 47
6 / 6 / Deductions: General Concepts and Trade or Business Deductions / 29, 30, 31, 34, 35, 42, 45, 46, 47, 54, 55, 56, 57 / 2A
7 / 7 / Deductions: Business/Investment Losses and Passive Activity Losses / 31, 32, 41, 42, 52, 54, 55, 56, 57, 58 / 3A
8 / 10 / Property Transactions: Determination of Basis and Gains and Losses / 21, 25, 28, 30, 35, 41, 46, 47, 48, 49
Examination 2
10 / 11 / Property Transactions: Nonrecognition of Gains and Losses / 21, 22, 25, 28, 30, 35, 46, 47, 48, 49
11 / 12 / Property Transactions: Treatment of Capital and Section 1231 Assets / 30, 34, 44, 45, 47, 49, 50, 61, 62, 63, 64, 65, 68 / 6A
12 / 16 / Partnerships:
16,109 – 16 195 / 23, 24, 25, 29, 46
13 / 16 / Corporations:
16,215 – 16,285 / 31, 32,
14 / 16 / S Corporations:
16,301 – 16,385 / 35, 37, 48, 44, 43
Fall 2004 - Academic Calendar
Thur / August 26 / Residence halls open for new First Year resident students
Orientation begins for all new First Year students
Fri / August 27 / Orientation continues for all new First Year students
Sat / August 28 / Orientation continues for all new First Year students
Residence halls open for resident upperclass students
1st Accelerated Saturday Session classes begin
Sun / August 29 / Final Registration day for all Day students
Orientation day for all incoming Transfer students
Mon / August 30 / All Day/Evening classes begin
Thur / September 2 / Convocation Mass of the Holy Spirit
Fri / September 3 / Last day for course ADD
Mon / September 6 / Labor Day - No classes
Mon / September 13 / Last day for course DROP
Fri-Sat / Sept 24-25 / Family and Friends Weekend
Thur / October 14 / Residence halls close at 9:00 p.m.
Fri / October 15 / Fall Recess - No Day Classes
Last day of refund for Withdrawal from the College
Sat / October 16 / Final exams for 1st Accelerated Saturday Session
Mon / October 18 / All day classes resume
Wed / October 20 / Mid-semester grades due in Registrar's Office - Day & Evening
Fri-Sun / October 22-24 / Homecoming Weekend
Sat / October 23 / 2nd Accelerated Saturday Session classes begin
Fri / October 29 / Last day for authorized course Withdrawal (no refund)
Mon-Fri / Oct 18 - 29 / Advisement
Wed-Wed / Oct 27-Nov 10 / Registration for Spring 2005 classes
Sun / November 21 / Patron's Day (Feast of Christ the King)
Tues / November 23 / FOLLOW FRIDAY CLASS SCHEDULE
No Tuesday Evening Classes
Thanksgiving Recess begins after last class
Residence halls close at 6:00 p.m.
Wed-Sun / Nov 24 - 28 / Thanksgiving Recess
Sun / November 28 / Residence halls open at 12 noon
Mon / November 29 / All classes resume
Fri / December 10 / Last day of classes
Mon-Sat / Dec 13-18 / Final Examinations - Day & Evening classes
Residence halls close at 6:00 p.m.
Sat / December 18 / 2nd Accelerated Saturday Session final exams