Mississippi College School of Business Federal Tax Accounting I

Document Sample
Mississippi College School of Business Federal Tax Accounting I Powered By Docstoc
					                          Mississippi College School of Business
         Federal Tax Accounting I (Individual Income Tax)/ACC403 and ACC5403
                              Course Syllabus for Fall, 2002

Instructor: Patricia H. Mounce, Ph.D., CPA

Communications: Office Self 201D
                Telephone: 925-3414 or 924-3206;        Fax: 925-3954
                E-Mail: mounce@mc.edu or trishmounc@aol.com
                Office Hours: Monday 8:30-9:00; 11:00-12:00; 1:00-6:30.
                                Wednesday 8:30-9:00; 11:00-12:00; 1:00-2:00
                                Friday 8:30-9:00
                                And by appointment

Required Textbook and other tax publications:
      West’s Federal Taxation: Individual Income Taxes 2003 Edition, by Hoffman, Smith, and
             Willis, General Editors
      Your Federal Income Tax for Individuals, Publication 17, Department of the Treasury,
             Internal Revenue Service or a current U. S. Master Tax Guide
      Various tax forms

Course Description (3 credit hours)
      ACC403: Prerequisites ACC202:
      ACC5403: Prerequisites ACC302 and graduate standing:
      Consideration of the basic features of the federal income tax system with particular emphasis
      on the determination of the taxable income of individuals.

Rational for Course:
       ACC403 is a required course for accounting majors in the School of Business. ACC5403 is an
       elective course in the MBA program. The courses are designed to stimulate the intellectual
       development of accounting students by developing skills needed to identify and analyze tax-
       related issues and prepare individual income tax returns.

Course Objectives:
       1.    To acquaint students with the concepts and terminology of federal income taxes
             applicable to individual taxpayers
       2.    To develop students’ ability to recognize and analyze transactions that effect a
             taxpayer’s income tax liability
       3.    To develop students’ problem-solving skills and provide an opportunity to practice
             solving individual income tax problems
       4.    To develop an awareness of the ethical issues confronting taxpayers and tax preparers

Academic Integrity and Student Responsibility:
      Mississippi College students are expected to be scrupulously honest. Dishonesty, such as
      cheating or plagiarism, will be regarded as a serious offense subject to severe penalty
      including, but not limited to, loss of credit and possible dismissal. See the 2002-2003 MC
      Undergraduate Bulletin, p. 53 or University Policy 2.19 which has been recently been adopted
      by the Board of Trustees (http://www.mc.edu/publications/policies/) for specific information.
        Students are expected to complete tests individually. Cheating will result in a zero on the test
        and immediate expulsion from the class. Tax Returns may be completed with one partner;
        however, both partners are expected to contribute significantly to every return. Collaboration
        with any other group or individual will be considered cheating. Study groups are encouraged
        for completing homework assignments. However, every person in a study group is expected to
        contribute. Copying homework assignments or having someone else complete homework
        assignments will be considered cheating.

        In accordance with Section 504 of the Rehabilitation Act of 1973, Mississippi College does not
        discriminate on the basis of handicap in admission or access to, or treatment in its programs
        and activities. If students need special accommodations due to learning, physical,
        psychological, or other disabilities, they should direct their inquiries to Director of the
        Counseling and Testing Center, Mississippi College, Lowrey, Room 101, Telephone:
        601.925.3353. For more information including student appeals, see the Mississippi College
        The Tomahawk, Students with Disabilities section.

        Monday, November 4, is the last day to drop a class. Students cannot withdraw after this date
        with a W (passing) unless three criteria are met: (1) extenuating circumstances that are clearly
        outside the student’s control; (2) passing the course at the time of withdrawal; and (3) does not
        have excessive absences at the time of withdrawal.

        The class attendance policy of the University will be strictly enforced. See the Mississippi
        College Graduate or Undergraduate Catalogue for specific information. Students are expected
        to attend all classes and to be on time. Late arrivals and early departures will be counted as ½
        absence. An eviction from class will be counted as one absence (see classroom behavior
        below). A class attendance sheet will be completed at the beginning of each class–if a student
        arrives late it is his or her responsibility to add his or her name to the attendance sheet at the
        end of the period. All work turned in for a grade must be done in pencil or typed (no ink pens
        or markers, please) and in good form. Any work that is difficult to read will not be graded.

        ACC5403: Graduate students should read the Graduate Orientation Manual in its entirety.
        This is an important part of the orientation for graduate students. Please get your hard copy
        from your department or from the Graduate Office in Nelson 202. You may also view the
        manual on the web at this address: http://www/mc.edu/publications/graduate/orientation.html.

Classroom Behavior:
       Cell phones and pagers must be silent during class. If a cell phone rings, expect to share the
       conversation with the entire class! A second offense will result in eviction (counted as one
       absence) from class.

        Eating is not allowed during class. Exceptions will be made for illness and for special
        occasions where all students are included with the prior approval of the instructor. Absolutely
        no “go boxes” will be allowed in the classroom.

        Late arrival to class is strongly discouraged. If a student arrives late he or she should wait
        outside the door until an appropriate break in the lecture or homework coverage. Please enter
        quietly and take the first seat available in order to avoid disrupting other students.

        Early departure from class is strongly discouraged. If a student must leave class early, he or
        she should get prior approval from the instructor.
       Rude behavior toward the instructor or other students will not be tolerated. Language and
       actions should always be courteous and respectful. The first transgression will result in
       eviction (counted as one absence) from class. A second offense will result in permanent
       expulsion.

Course Content:
         Topic To Be Covered                                                 Weeks

         Introduction to Taxation; Tax Determination; Personal and           three
         Dependency Exemptions; Overview of Property Transactions

         Gross Income and Deductions                                         eight

         Passive Activity Losses and Property Transactions                   two

         Exams (including final) and holidays                                three

Methods of Instruction:
      Class time will be spent in lecture and discussion of homework assignments and current
      events. Student participation is imperative. All questions and appropriate comments are
      welcome. If a topic is not clear, please request additional explanation or time. Students should
      come to class prepared by reading the text and completing all homework and assignments
      prior to class.

Evaluation Process:              ACC403                                    ACC5403
      Grading       Points Assigned   Total Points            Points Assigned   Total Points
      4 Exams            100             400                         75            300
      3 Tax Returns        25             75                         25              75
      1 Current Events     10             10                          –              –
      In-class work         –             15                          –              15
      Research Project      –             –                         100            100
      Presentation          –             –                           10             10
      Total Points                      500                                        500

Grading Scale:
      Undergraduate (%): 90-100=A; 80-89=B; 70-79=C; 60-69=D; below 60=F
      Graduate (%): 93-100=A; 90-92=B+; 84-89=B; 81-83=C+; 75-80=C; 70-74=D; below 70=F

Required Practices:
Examination Requirements:
      ACC403: Exams 1 through 3 will consist of multiple choice, matching, and short problems.
      Questions and problems will come from information obtained from the textbook, current
      events, and classroom discussions of relevant issues. Questions and problems will encompass
      information to meet Course Objectives 1, 2, 3, and 4. Exam 4 will also include completion of
      an individual income tax return. Graded exams will be returned promptly to provide students
      with feedback prior to drop dates and mid-term evaluations.

       ACC5403: In addition to the requirements for ACC403, exams 1 through 4 will consist of at
       least one essay question designed to allow students to demonstrate their comprehension of
       topics covered.
Oral and Written Requirements:
       ACC403 and ACC5403: Homework should be completed prior to class and will be
       collected or checked for completeness occasionally. Homework may not be turned in late.
       Students should always be prepared to present solutions to problems verbally or written on the
       board. Lack of participation will result in a deduction of points from In-Class Work. In
       addition, students can expect to have several brief in-class projects to complete during the
       semester. No make-up work will be permitted. However, students will be allowed to drop one
       score.

       ACC403: Tax returns may be group projects (made up of two students.) Any three returns
       are to be chosen from the cumulative problems listed in the assignments (preparation, NOT
       planning). Both team members are required to contribute significantly to every tax return.
       Lack of participation on a team member’s part will result of a grade of zero on that return with
       no make-ups allowed. Returns are due at the beginning of the class period before the exam
       covering the chapter from which a return is chosen. No credit will be given for tax returns
       turned in late.

       ACC5403: Same as above with one exception. Instead of choosing any three returns, graduate
       students must complete one tax return from each test period.

       ACC403: One current event should be presented to the class during the semester. Students
       should select a date from the sign-up sheet distributed during the first week of class. Current
       events should be very current and may come from sources such as The Wall Street Journal,
       Business Week, CNN newscasts, the Internet, etc. Monthly or quarterly journals and books are
       not acceptable sources. Grades will be given for content and presentation, nothing is to be
       turned in. Students should provide (orally) the source, date, and other information that will
       allow classmates to access the information. A current event may be used only once. If a
       student presents an event that has already been presented, no credit will be given.

       ACC5403: Graduate students are expected to stay abreast of current events relating to
       individual tax. Students are expected to regularly participate in discussions of current events.
       Lack of participation will result in a loss of points.

       ACC5403: The final semester grade will be based on one research paper relating to an
       individual tax issue. The research paper should be based on a relevant topic relating to
       individual tax policy or planning. Topics will be chosen from a list of approved topics. The
       research paper should contain headings and subheadings. Citations to authorities should be in
       proper format, using the manuscript preparation and style required by The Journal of the
       American Taxation Association. Papers will be graded on content, grammar and spelling.
       Anyone can write a lengthy paper on the complex topics chosen. Your task is to write an
       “Executive Summary” dealing with your topic in a maximum of 7,000 words. The key is to
       not use unnecessary words; but maximize the meaning in the words you use. Papers turned in
       late will have 10 percent deducted from the grade each day after the due date. A schedule of
       assignments relating to the paper are included in the assignment schedule.

       A presentation of your paper will be made during the last regular class period. Students and
       visitors will be invited to attend the presentation.

Make-up Policy:
      No make-up exams will be given. Homework and current events may not be turned in late.
      Students are expected to attend all classes. If a student misses exam 1, 2, or 3 with a
        documented, acceptable reason, the material will be included in the following quiz. Acceptable
        reasons are limited to illness (doctor’s excuse required), legal obligation such as court
        appearance (copy of summons required), auto accident (copy of police report required),
        participation in an approved University activity (appropriate letter from sponsor or coach
        required), or required military duty (copy of orders required).

        Do not arrive at exam time and ask the instructor for special permission to take the exam later.
        If a special circumstance other than other listed above occurs, discuss the problem with the
        instructor prior to the day of the exam.

Retaining Student Work:
       The instructor reserves the right to retain for pedagogical reasons either the original, or a copy
       of any student’s exam, quiz, written assignment, paper, video, or similar work submitted by the
       student, either individually or as a group project, for this class. Names will be deleted from any
       retained items.
                                   Assignment Schedule (Tentative)

Date     Chapter No. and Title                                  Assignments (to be completed prior to class)

Aug 26   1: An Introduction to Taxation and Understanding the   Chapter 1: 2, 7, 9, 23, 25, 45, 46
            Federal Tax Law
         2: Working with the Tax Law                            Chapter 2: 3, 9, 10, 19, 21, 28, 48, 50

Sep 2    Labor Day

Sep 9    3: Tax Determination; Personal and Dependency          3, 4, 6, 29, 31, 34, 36, 37, 46, 47, 49, 52;
         Exemptions; An Overview of Property Transactions       Cum. Prob. 54 (compute tax due or refund);
                                                                 ACC5403 Topic Due

Sep 16   Exam #1 (and lecture Chapter 4)                        Chapters 1, 2, and 3

Sep 23   4: Gross Income: Concepts and Inclusions               7, 10, 30, 33, 35, 38, 39, 40, 45, 46, 49, 50,
                                                                52, 53, 55, 56; Cum. Prob. 60

Sep 30   5: Gross Income: Exclusions                            8, 11, 13, 17, 28, 29, 31, 32, 35, 37, 41, 42,
                                                                47, 49, 54, 56, 58; Cum. Prob. 60

Oct 7    6: Deductions and Losses: In General                   18, 19, 24, 34, 35, 37, 38, 41, 42, 47, 49, 50,
                                                                51, 52, 54, 57, 59, 61; Cum. Prob. 63
                                                                ACC5403 Outline of paper due

Oct 14   7: Deductions and Losses: Certain Business Expenses    2, 5, 10, 23, 25, 32, 34, 35, 36, 39, 43, 47;
         and Losses                                             Cum. Prob. 54

Oct 21   Fall Recess

Oct 28   Exam #2 (and lecture Ch 8 and 9)                       Chapters 4, 5, 6, and 7

Nov 4    8: Depreciation, Cost Recovery, Amort., & Depletion    Ch 8: 29, 32, 36, 42, 47, 53, 57; Cum Prob 58
         9: Deductions: Employee Expenses                       Ch 9: 33, 35, 36, 39, 40, 44, 45, 46, 49; Cum.
                                                                Prob. 50

Nov 11   10: Deductions and Losses: Certain Itemized            2, 3, 6, 12, 19, 25, 26, 28, 32, 33, 34, 35, 37,
         Deductions                                             38, 39, 42, 43, 45 46; Cum. Prob. 49
                                                                ACC5403 Rough draft of paper due

Nov 18   14: Property Transactions: Determination of Gain or    Ch 14: 30, 33, 34, 36, 46, 48, 55
         Loss Basis
         15: Property Transactions: Nontaxable Exchanges        Ch 15: 12, 22, 35, 37,41, 43, 49, 52, 56
                                                                ACC5403 Final draft of paper due

Nov 25   Exam #3 (and lecture Ch 13)                            Chapters 8, 9, 10, 14, and 15

Dec 2    11: Passive Activity Losses                            Ch 11: 3, 5, 8, 15, 35, 37, 40, 51, 60, 61, 62
         12: Alternative Minimum Tax                            Ch 12: 8, 20, 24, 31

Dec 9    16: Property Trans: Capital Gains & Losses             Ch 16: 17, 23, 24, 30, 31, 32, 33
         17: Property Trans: §1231 and Recapture Provisions     Ch 17: 2, 13, 16, 17, 24
                                                                ACC5403 Presentations

Dec 16   Final Exam                                             Chapters 11, 12, 16, and 17 and tax return
         CURRENT EVENT
          SIGN-UP SHEET


Sep 9

Sep 23

Sep 30

Oct 7

Oct 21

Nov 4

Nov 11

Nov 18

Dec 2

Dec 9
                        List of Approved Topics for Individual Income Taxation
Remember that all papers should cover the TAX aspects of the topics, not simply a description, etc.
Employee Business Expenses for Professionals
§179, §1031, §1231, §1244, §1245, §1250
Passing the family business to the next generation (from an individual taxpayer’s viewpoint)
Mississippi Individual Income Tax Issues
Employment Taxes
Cafeteria Plans, Flexible Spending Plans, Qualified Tuition Programs for MS
AGI Phase-out provisions
Alternative Minimum Tax Problems for Individuals
                                   Assignment Schedule (Tentative)

Dates     Chapter No. and Title                                  Assignments (complete prior to class)

Aug 28    Introduction

Aug 30    1: An Introduction to Taxation and Understanding the   Read chapter and complete assignments
             Federal Tax Law                                     2, 7, 9, 23, 25, 45, 46

Sep 2     Holiday - Labor Day

Sep 4     2: Working with the Tax Law                            Read chapter and complete assignments
                                                                 3, 9, 10, 19, 21, 28, 48, 50

Sep 6,    3: Tax Determination; Personal and Dependency          3, 4, 6, 29, 31, 34, 36, 37, 46, 47, 49, 52;
Sep 9,       Exemptions; An Overview of Property Transactions    Cum. Prob. 54 (compute tax due or
Sep 11                                                           refund); ACC5403 Topic Due

Sep 13    Exam #1                                                Chapters 1, 2, and 3

Sep 16,   4: Gross Income: Concepts and Inclusions               7, 10, 30, 33, 35, 38, 39, 40, 45, 46, 49,
Sep 18,                                                          50, 52, 53, 55, 56; Cum. Prob. 60
Sep 20

Sep 23,   5: Gross Income: Exclusions                            8, 11, 13, 17, 28, 29, 31, 32, 35, 37, 41,
Sep 25,                                                          42, 47, 49, 54, 56, 58; Cum. Prob. 60
Sep 27

Sep 30,   Chapter 6: Deductions and Losses: In General           18, 19, 24, 34, 35, 37, 38, 41, 42, 47,
Oct 2,                                                           49, 50, 51, 52, 54, 57, 59, 61; Cum.
Oct 4                                                            Prob. 63; ACC5403 Outline of paper due

Oct 7,    Chapter 7: Deductions and Losses: Certain Business     2, 5, 10, 23, 25, 32, 34, 35, 36, 39, 43,
Oct 9,    Expenses and Losses                                    47; Cum. Prob. 54
Oct 11,
Oct 14

Oct 16    Exam #2                                                Chapters 4, 5, 6, and 7

Oct 18,   8: Depreciation, Cost Recovery, Amortization, and      Ch 8: 29, 32, 36, 42, 47, 53, 57; Cum
          Depletion                                              Prob 58

Oct 21    Fall Recess

Oct 23,   Chapter 9: Deductions: Employee Expenses               Ch 9: 33, 35, 36, 39, 40, 44, 45, 46, 49;
Oct 25,                                                          Cum. Prob. 50
Oct 28

Oct 30,   Chapter 10: Deductions and Losses: Certain Itemized    2, 3, 6, 12, 19, 25, 26, 28, 32, 33, 34, 35,
Nov 1,    Deductions                                             37, 38, 39, 42, 43, 45 46; Cum. Prob. 49
Nov 4                                                            ACC5403 Rough draft of paper due

Nov 6     Chapter 13: Tax Credits and Payment Procedures

Nov 8,    14: Property Transactions: Determination of Gain or    30, 33, 34, 36, 46, 48, 55
Nov 11    Loss Basis

Nov 13,   15: Property Transactions: Nontaxable Exchanges        12, 22, 35, 37,41, 43, 49, 52, 56
Nov 15,                                                          ACC5403 Final draft of paper due
Nov 18
Nov 20    Exam #3                                              Chapters 8, 9, 10, 14, and 15

Nov 22,   11: Passive Activity Losses                          3, 5, 8, 15, 35, 37, 40, 51, 60, 61, 62
Nov 25

Nov 27,   Holiday - Thanksgiving
Nov 29

Dec 2,    12: Alternative Minimum Tax                          8, 20, 24, 31
Dec 4

Dec 6,    16: Property Transactions: Capital Gains & Losses    17, 23, 24, 30, 31, 32, 33
Dec 9

Dec 11    17: Property Trans: §1231 and Recapture Provisions   2, 13, 16, 17, 24

Dec 13    Final Exam; 11 a.m. - 1 p.m.                         Chapters 11, 12, 16, and 17 and tax
                                                               return

				
DOCUMENT INFO
Description: law-school-outline---tax-briefs pdf