ACCT 335: Federal Income Taxation
| Course Home Page | Instructor's E-mail | Introduction |
|---|---|---|
| Instructor | Structure of the Course | Required Materials |
| Course Requirements | Grading | Learning Strategies |
| Course Mechanics | How to Begin | Course Outline |
Introduction
ACCT 335 is an introductory course on the federal tax system. Individuals enrolling in this class should have completed at least one college-level course in accounting, or have equivalent experience in dealing with financial statements. Mastery of double-entry accounting is not required; however, you should be knowledgeable about income statements and balance sheets, and should have familiarity with various types of business entities. You should be prepared to solve elementary equations, and be able to write clearly, cogently, and sparingly.
Any of the thirteen modules comprising this course could be expanded into a self-standing course in the tax curriculum of a business school or a law school. The point is, we can only scratch the surface on a number of very complex topics. Accordingly, the primary goal of this course is to gain a conceptual knowledge of fundamental concepts, gain a good understanding of elementary tax issues, and discover how to address these issues—either by resolving them yourself or seeking professional assistance. By increasing your familiarity with the federal tax system, you can expect to be a better businessperson and a better citizen.
Upon the successful completion of the course, you should be able to:
- understand basic tax terms and issues
- identify basic tax issues that arise in business transactions
- research the correct treatment of elementary tax issues
- compute the tax due on Form 1040
- recognize the fundamental differences in taxation of various business entities.
Prerequisite: You should have completed a college-level Principles of Accounting class. (At Elizabeth City State University, that course is ACCT 212.) You should be familiar with income statements and balance sheets, be prepared to solve elementary equations, and be able to write clearly, cogently, and sparingly. Double-entry accounting is not required for this course.
Instructor
I am George Jackson, a full-time faculty member at the Walter R. Davis School of Business and Economics, Elizabeth City State University. I have taught tax classes for more than twenty years at several colleges and universities, including East Carolina University and UNC-Chapel Hill. My education includes degrees from East Carolina University (BSBA), College of William and Mary (MBA), University of North Carolina (JD), and Georgetown University (LLM).
I am licensed as a Certified Public Accountant and as an attorney. Before returning to academia, I practiced law for several years in northeastern North Carolina, focusing on business and taxation issues. I have represented clients before the IRS and in tax court, and I continue to consult as an expert in tax litigation issues. I have published articles on tax topics in numerous academic and professional journals, including The CPA Journal, The Tax Advisor, Tax Notes, and Real Estate Review.
I set out these credentials hoping to convince you that I am sufficiently prepared to lead you through the course. That said, it is important that I confess that there is quite a lot that I don’t know about federal income taxation. Indeed, vis-à-vis the world of taxation, what I don’t know is considerably more vast than what I do know. To suggest what you should expect of me, and what you should be hoping to achieve in studying taxes, I borrow rather liberally from the remarks of the wizard to the departing Dorothy and her traveling companions in The Wizard of Oz (can you remember the tin man looking for a heart, the lion looking for courage, and the scarecrow looking for a brain?), “What I do have, Dorothy, is enough knowledge to recognize most tax issues, and an approach for resolving those issues.”
After completing this course, you should feel similarly empowered. Also, I hope that, at least for some of you, the course will whet your appetite to learn more about taxes and their impact on our economic decisions.
Structure of the Course
ACCT 335 is a survey-type course. At the broadest level, the issue in this class is “How do we determine the amount of tax due to the federal government?” That question evolves into four sub-issues, the units.
Each unit addresses a theme:
Unit 1: What is included in gross income?
Unit 2: What expenditures will reduce one’s tax liability?
Unit 3: What tax liabilities arise from a sale or exchange of property?
Unit 4: How are entities other than individuals taxed?
The units are divided into modules that focus on the federal income tax, a tax that the federal government assesses against the income of an individual or an entity. The following taxes are not covered in this course: state taxes, local taxes, federal estate and gift taxes, and federal excise taxes . Entities taxation (corporations, partnerships, and so on) is covered only as it affects the individual taxpayer involved.
Each of the thirteen modules begins with Objectives, followed by the Reading Assignment and Notes, divided into sections. Each section in the Notes begins with a reading assignment from your textbook, then my comments on the important terms or concepts. The Notes are followed by a Supplemental Reading Assignment from the Web—these are required reading. Finally, each module has a brief online quiz and a written assignment.
In addition to the module assignments, there are two comprehensive assignments (projects) and two exams. More information on the assignments and exams is below.
Required Materials
The textbook for this course is
South-Western Federal Taxation: Individual Income Taxes, 2009 edition, by Hoffman, Smith, and Willis.
The textbook includes TaxCut software, which you should install on your computer—you will need it for the Comprehensive Tax Project. The publisher also provides a Book Companion Site with free learning aids such as interactive quizzes and flashcards.
The book is a widely adopted text for university-level introductory tax classes. Its primary strength is its all-inclusiveness. It contains a wealth of information on many income tax topics, including nearly every income tax topic addressed in this course. It has two disadvantages:
- Sometimes there is too much emphasis on detail and minutia at the expense of conceptual discussions.
- The end-of-chapter problems focus too much on integration of various topics, rather than clearly driving home the primary point of the particular topic under discussion.
When all the dust settles, however, it is a good text, and I know of no better one. It works well with the notes I provide in the modules. The notes provide brief conceptual overviews, and the text backs them up with more detailed discussions and examples. The authors have organized each chapter of the text into Learning Objectives (LOs). The objectives are listed on the first page of each chapter, and thereafter, at the beginning of each learning objective, the LO is marked in the margin alongside the text narrative.
The notes in the course modules utilize LO references to assist you in navigating between my outline and textbook. Sometimes the text and the outline topic dovetail perfectly, but in some instances there is less than perfect parallelism. If there is a difference, usually it is because I have chosen to omit some of the text topics. You are responsible for only those topics included in the Reading Assignments. While you are encouraged to explore all of the textbook topics, you are not required to study topics that are not required reading. Some of the text LOs are lengthy. In those instances, I advise you to look for the bold letter subheadings that are sometimes used to break down the topics.
The text can be obtained from Friday Center Books & Gifts either by ordering online or by printing and mailing the book order form.
IRS Forms and Publications
The Internal Revenue Service provides an extraordinary number of publications on various tax topics. Most of the items are free, and most of them are updated each year. Before you begin, I encourage you to order from the IRS three free booklets:
- 1040 Instructions (the complete version)
- Your Federal Income Tax (Publication 17)
- Tax Guide for Small Business (Publication 334).
These are available through the IRS Web site (www.irs.gov), or by calling 800-829-3676. The 1040 Instructions will be necessary to complete assignment , and the other two booklets provide excellent, easy-to-read discussions of many topics that we address in the course.
IRS publications are in PDF format. You probably have a version of the Adobe Reader installed on your computer already. You can download the latest version free from the Adobe site:
IRS forms can be filled out and submitted to me without changing format. If you encounter problems filling out the pdf forms, try downloading a newer version of the Adobe Reader. If you need more assistance, contact the instructional designer at the Friday Center.
Course Requirements
Quizzes. Each module includes a short open-book, open-note, true/false quiz to be taken online via Blackboard (see Course Mechanics for details on access to Blackboard). The quizzes are automatically graded.
Written Assignments. Each module includes a written assignment that asks you to apply some of the concepts covered in the lesson. You submit these assignments via e-mail to me and to Self-paced Courses following the instructions provided in the assignment.
Midterm Examination. A midterm examination must be completed at the end of Module 3-3. The exam includes multiple-choice, true/false, and short-answer questions, as well as some problems. The midterm is taken online via Blackboard. More information is provided in Module 3-3.
Comprehensive Tax Project. This assignment requires that you complete a federal Form 1040 and related schedules for a tax return of intermediate difficulty using the TaxCut software that comes with your textbook. You should submit this assignment before scheduling your final exam. See complete instructions for the Comprehensive Tax Project.
Research Project. You will be required to utilize several tax authorities, widely available on the Internet or in libraries, as source materials for an original paper on a particular tax issue. Topics must be approved in advance. You should submit this assignment before scheduling your final exam. See complete instructions for the Research Project.
Final Examination. The final examination, similar in format to the midterm, must be scheduled and supervised. When you are ready, you can schedule your exam with the Self-paced Courses office. You must pass the final exam in order to get credit for the course. The material covered on the midterm will also be included in the final exam, but the primary emphasis on the final will be the last seven modules. The final exam is closed-book and closed-note. Any forms you need will be provided.
Grading
| Module quizzes and written assignments | 20 percent | |
| Midterm exam | 20 percent | |
| Comprehensive tax project | 20 percent | |
| Research project | 20 percent | |
| Final exam | 20 percent | |
| 90–100 | A | |
| 80–89 | B | |
| 70–79 | C | |
| 60–69 | D | |
| below 60 | F | |
Learning Strategies
- Begin each module by first reading the Objectives as a means of familiarizing yourself with the topics that will be addressed. I can’t overemphasize the importance of absorbing the broad conceptual statements for each lesson before digging into the detailed topics. It’s the old forest and the trees analogy—in the world of taxes, you should understand the overriding issues before exploring the minutia.
- Once you have an idea of the issues, begin the Reading Assignment and Notes section, reading the assigned Learning Objectives (LOs) in your textbook and my comments on the topics. You should prepare your own detailed outline for each topic.
- After completing your own detailed outline of the topics, go on to the required Supplemental Reading Assignment, and prepare (for yourself) a brief summary of the points addressed. In some instances, the article or Web site assigned will reinforce topics included in the text, and in other instances will add new material. The articles go back and forth between primary tax authorities (emanating from a government source) and secondary authorities (commentary on a tax matter by noted experts). The exercise of accessing the supplemental readings provides you with an important residual benefit: When you undertake the Comprehensive Research Project, you’ll be better prepared to identify the applicable primary and secondary authorities that pertain to your topic.
- When you are ready, take the module Quiz. Although you can use your notes, the text, and so on for these quizzes, it's good to get used to answering questions without looking at your materials, since the midterm and final exams will be closed-book. After you submit your quiz, the correct answers will be shown to you, and you may wish to print that page out for future study.
- Now you are ready to complete the Written Assignment and submit it for grading. Always keep a copy of your submission for your records.
Your outlines and summaries, the completed quizzes, and your graded written assignments will be critical study aids as you prepare for the midterm and final exams. Make sure they are kept in a safe place (on your computer and as hard copy).
Course Mechanics
Blackboard
Your module quizzes and the midterm exam are accessed through a software package called Blackboard, and you will need to log in to Blackboard using a unique identifier known as your UNC Onyen (Only Name You'll Ever Need) and Onyen password.
There is a link to the Blackboard site in the gray navigation bar at the top of every page in this course. Click on that link, and then use your Onyen to log in to Blackboard. Click on the ACCT 335 link.
If you experience problems accessing Blackboard, this is what you should do:
- If you do not already have a UNC Onyen, go to the Onyen Web site and follow the instructions for creating an Onyen.
- If you have an Onyen but have forgotten it (or the password), you will find help on the Onyen Web site.
- If you have your Onyen but can't log in to Blackboard, contact Janice Durham at the Friday Center.
- If you can log in to Blackboard but can't find this course listed, contact Janice Durham at the Friday Center.
- If you can't locate a quiz or the midterm exam in Blackboard, contact the Instructional Designer at the Friday Center.
- If you have other technical problems while using Blackboard, contact Blackboard Help (use the Help button in Blackboard, or call 919-962-HELP).
Using E-mail
We strongly recommend that you use your UNC e-mail account for all e-mails regarding your course. Hotmail users should be aware that Hotmail will block messages sent from within Blackboard because Blackboard uses “blind carbon copy” to protect privacy. If you forward your mail to an Internet e-mail service provider (yahoo.com or msn.com, for example), messages from me or Friday Center staff may be delayed because these service providers sometimes place temporary blocks on messages originating from universities. If you are using any form of webmail, the e-mail links in this course may not work for you. Please add the following to your e-mail address book to use instead:
| Instructor | George Jackson |
| Self-paced Courses | Friday Center staff |
| Web site problems | Instructional Designer |
It is extremely important for you to save copies of any work you send to your instructor via e-mail. If your instructor doesn't receive your work, you must have a copy of the e-mail with the attached file, indicating the date sent, to prove that you submitted the assignment. It is your responsibility to maintain copies of your sent e-mails, as there is no way to guarantee that any e-mail message will be delivered.
Please check your e-mail software to see how it manages sent and saved messages. Some software automatically deletes messages one month after they have been sent; others only save messages if they are filed in folders; others save messages received but not those sent. You may need to send yourself a copy of your e-mailed assignment at the same time you send it to your instructor, or you may need to print a copy of the e-mail message and any attachments to keep in your paper files. No matter how your system works, make sure you know how to save a copy of all work that you submit to your instructor and that you save the copy for several months beyond the end of the course.
Submitting Work
You will send your assignments to be graded by clicking a submit button (at the bottom of each lesson and on the special assignment pages) that opens a pre-addressed e-mail to your instructor and the Self-paced Courses office. Send your assignments as attachments to a single e-mail message. The subject line will automatically contain the course name and number and the submission number, making it easier for your instructor and Student Services to track your progress and keep your work separate from that of other students. Please add your name to the subject line (example: SPC ACCT 335 Assignment 3 - Jane Smith).
If the Submit Assignment buttons in this course do not work for you, you must enter both your instructor’s address and stuserv@unc.edu to an e-mail with your work attached. You must enter the correct subject line, which will be “SPCo ACCT 335 Submission #,” substituting the correct submission number, and adding your name.
Other Questions
Contact your instructor with questions regarding the content of the course and your progress. (There is an e-mail link at the top of every lesson page.)
Contact the instructional designer at the Friday Center about problems with this Web site, especially bad links.
If you have any logistical questions as you work through the course (enrollment, credits, extensions, withdrawal, and so on), contact the Student Services staff at the Friday Center (phone 919-962-1134 or 800-862-5669).
How to Begin
The course schedule is up to you. You can complete the course in as few as twelve weeks or take as long as nine months. The important thing is to get a good start, then maintain your momentum.
Since this course is not held in a classroom, I will probably never meet you in person. Still, I would like to know something about you so that I can associate each e-mail message from you with something more than a screen name. Therefore, your first task is to send me a Personal Information Sheet: Save this Word Document to your hard drive (or copy and paste from this Web page into your word processing program), fill it out, and attach it to an e-mail to me. This also gives us a chance to make sure our communication lines are working.
Then review the suggested steps in the Learning Strategies section and begin Unit 1: Module 1-1 (links to the modules are below).
Course Outline
| Unit 1: Determining Gross Income and Taxes Owed |
| Module 1-1: Introduction and Overview of the Federal Tax System |
| Module 1-2: The Federal Income Tax Formula and Tax Planning |
| Module 1-3: Gross Income—Items Included |
| Module 1-4: Gross Income—Items Excluded |
| Unit 2: Expenditures That Reduce Tax Liability |
| Module 2-1: Deductions Above the Line (For AGI) |
| Module 2-2: Deductions Below the Line (From AGI) |
| Module 2-3: Tax Credits |
| Unit 3: Tax Liabilities Arising From Property Transactions |
| Module 3-1: Property Transactions—Amount Realized and Basis Rules |
| Module 3-2: Property Transactions—Deferral and Exclusion of Realized Gains/Losses |
| Module 3-3: Capital Gains and Capital Losses |
| Midterm Exam |
| Unit 4: Entities Taxation |
| Module 4-1: Introduction to Entities and How They Are Taxed |
| Module 4-2: Taxation of Flow-Through Entities |
| Module 4-3: Taxation of Separate Legal Entities |
| Projects and Final Exam |
| Comprehensive Tax Project |
| Research Project |
| Schedule your final exam. |
| Please fill out a brief online course evaluation. We welcome your comments and want to know if this course met your needs and expectations. |