Master Syllabus

Federal Taxes

I. BASIC COURSE INFORMATION

  1. Course Title: Federal Taxes
  2. Course Number: ACC230
  3. Course Name: Accounting
  4. Credit Hours: 3
  5. Semesters Offered: Fall
  6. Prerequisite: ACC 105 Financial Accounting

 

II. COURSE DESCRIPTION

This course covers the federal tax system, including income taxes, withholding taxes, payroll taxes and self-employment taxes. Emphasis is given to the Internal Revenue code for tax accounting for individuals and businesses, research sources, and preparation of returns. Also covered are special tax computations, tax credits, gains and losses, inventories, depreciation, tax problem researching sources and preparation of returns.

III. RATIONALE OF COURSE

Virtually all U.S. citizens pay federal income taxes; students should be able to minimize their personal taxes. Additionally, accounting and management students are often involved in some phase of tax reporting and/or preparation for their companies. Therefore, familiarity with the Internal Revenue System and the Internal Revenue Code is considered beneficial.

IV. COURSE COMPETENCIES

  1. Discuss the relationships among taxation, government and business decision making.
  2. A1: Describe the economic and social objectives of the Federal income tax law, citing taxation situations where either or both objectives can be achieved.
    A2: Differentiate between a progressive and regressive tax structure, citing examples of each.
    A3: Outline the legislative process for the enactment of tax law.
    A4: Discuss the ethical, practical and business implications of a tax practice.

  3. Apply the Tax Code of the IRS to classify and calculate income, adjustments, deductions, credits and taxes.
    B1: Use the tax formula to compute an individual's taxable income.B2: Determine the amount allowable for the standard deduction.
    B3: Calculate the amount and correct number of personal and dependency exemptions.
    B4: Determine the most advantageous filing status for individuals.
    B5: Calculate an individual's tax using both the tax tables and tax rate schedules.
    B6: Determine non-taxable employee fringe-benefit items.
    B7: Compare and contrast deductions for and from AGI, citing examples.
    B8: Identify and compute amounts of all qualified itemized deductions.
    B9: Determine the classification of transactions which result in a loss.
    B10: Calculate the deduction for a casualty or theft loss.
    B11: Determine passive activity losses and material participation.
    B12: Computer bad debt and NOL deductions.
    B13: Calculate moving expense deduction.
    B14: Calculate Office-In-Home and educational expense deductions.
    B15: Determine IRA contributions and deductions.
    B16: Calculate Alternative Minimum Tax (AMT).
    C. Apply tax law to determine taxation for businesses and businesses' owners.
    C1: Discuss the criteria for deducting business and investment expenses.
    C2: List the substantiation and requirements that must be met to deduct travel and entertainment expenses.
    C3: Discuss the criteria used to determine whether an activity is a hobby or a trade or business.
    C4: Classify and calculate travel and entertainment expense deductions, using the 20% disallowance rule.
    C5: Calculate self-employment income and self-employment tax.
    C6: Calculate estimated tax payments.
    C7: Calculate personal and business tax credits.
  4. Apply IRS Tax Code to determine tax treatment of real and personal property.
  5. D1: Calculate the basis of property
    D2: Determine the holding period for an asset.
    D3: Calculate the realized gain or loss from the sale or disposition of property.
    D4: Distinguish between capital assets and other assets, citing examples.
    D5: Calculate depreciation using straight-line ACRS and modified ACRS methods.
    D6: Determine inventory valuations and COGS using LIFO, FIFO, and LCM methodology.
    D7: Determine when a gain from the sale or a principal residence is deferred and when it is excluded, and calculate the basis for replacement property.
    D8: Determine the basis and tax consequences of a like-kind exchange.
    D9: Identify Section 1231 property and categorize the tax treatment of Section 1231 transactions.
    D10: Calculate the recapture provisions of Section 1245 and Section 1250.
    D11: Decide the tax consequence of using residential real estate for both personal and rental purposes.
  6. Consider all applicable tax implications to determine the most advantageous form of business.
  7. E1: Discuss the tax ramifications of a partnership formation.
    E2: Determine the tax implications of distributions to partners.
    E3: List the requirements for S Corporation status.
    E4: Describe the tax treatment of S Corporation shareholders.
    E5: Describe the corporate form and its characteristics.
    E6: Calculate the corporate tax.

  8. Demonstrate preparation of IRS forms and schedules.
  9. F1: Complete IRS Forms 1040, 1065, and 1120.
    F2: Complete IRS Schedules A, B, C, D, and E
    F3: Complete IRS Forms 2106, 2119, 4562
    F4: Given a complex taxpayer situation, the student will research items of tax law and complete taxpayer's federal income tax return.

  10. Discuss tax accounting concepts.
  11. G1: Differentiate between economic, accounting and tax concepts of income.
    G2: Determine when income is taxable under the cash and accrual methods of reporting.
    G3: Explain when deductions may be taken under both the cash and accrual methods of accounting.