BA 325
Introduction to Federal Taxation
Spring 2006
Course Number: BA 325
Course Credits: Four
Course Schedule: BA 325 meets twice per week in two hour blocks on Mondays and Wednesdays.
Section 1 meets from 10 am – 11:50 am
Section 2 meets from 12 noon- 1:50 pm
Course Location Bexell Hall Room 207
Prerequisites: BA 317 with a “C” or better, BA 340 and departmental approval
Phone: 541 737 3226(Do not leave messages)
503 799 2686 (Cell phone - leave messages)
E-mail larry.brown@bus.oregonstate.edu
Office Hours: Monday and Wednesday 8:15-9:45
And by appointment
Learning Resources: Concepts in Federal Taxation, Murphy and Higgens 2006 edition.
Form and Instructions for 1040 (2005) (http://www.irs.ustreas.gov/)
Publication 17 (http://www.irs.ustreas.gov/)
IRS publication 334 Tax Guide for small businesses (http://www.irs.ustreas.gov/)
The Forms and pubs can either be downloaded or ordered on the above web page.
Course Description: This course covers concepts related to individual and business taxation and covers basic income tax law primarily as it relates to individuals, the role of income taxes in the decision making process and an understanding of basic income tax research. This is a tough and time-consuming course. Make sure your schedule allows you sufficient time to succeed in this course.
Measurable Student
Learning Outcomes: The primary learning outcomes of BA 325 are to acquire sufficient knowledge and comprehension of the internal revenue code and regulations and federal income tax forms and an understanding of tax research that will allow you to apply income tax concepts and income tax law to properly prepare income tax returns, to analyze and solve income tax compliance issues, to formulate solutions to complex income tax planning issues, to assess various income tax issues that are proposed based on the underlying facts and circumstances and to communicate your understanding of income tax issues to clients and colleagues.
Classroom
Environment: BA 325 will be conducted primarily by lecture and classroom discussion. There will be some time devoted to discussing assignments. Both sections of BA 325 are full or nearly full so please attend the section into which you are enrolled to the greatest extent possible. Please do not come into class late, read during class, or talk excessively with other students during lectures. TURN THE CELL PHONES OFF. Such behaviors are disruptive to the learning environment and disrespectful. Respect for your fellow students and instructors are of utmost importance. This is a cooperative learning environment and I want you to feel comfortable asking questions. I will never intentionally make you feel uncomfortable for doing so.
Evaluation of
Student Performance: Course requirements include exams and various homework assignments, as further discussed below. The weighting on the course requirements is as follows:
|
Mid Term 1 17% |
85 |
|
Mid Term 2 17% |
85 |
|
Final 17% |
85 |
|
Problem Assignments: 26% |
130 |
|
Special Assignment: |
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|
#1 Tax Research 2% |
10 |
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#2 Income/Exclusion 1% |
5 |
|
#3 Deleted |
0 |
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#4 Tax Research 2% |
10 |
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Tax Return(s) 18% |
90 |
|
Total Possible Points |
500 |
Grade Distribution: Your course grade will be determined by your performance based on the total points earned with the assurance that the curve will be no higher than shown below. The curve may be lowered depending on the distribution of the total points for the class.
|
A |
460-500 |
|
A- |
450-459 |
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B+ |
440-449 |
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B |
410-439 |
|
B- |
400-409 |
|
C+ |
390-399 |
|
C |
360-389 |
|
C- |
350-359 |
|
D |
300-349 |
|
F |
Below 300 |
I will be pleased to discuss any grading related questions. However you must contact me if you have a question regarding graded items within the two week period beginning the day subsequent to the day the graded items are returned in class. You are responsible for tracking the points you earn on assignments and exams and comparing them to the posted scores. If you find a discrepancy, you must also notify me within 2 weeks of the original posting.
Exams: There will be 3 multiple choice exams. Mid-term #1 will cover Chapters #1-4 Mid-term #2 will cover Chapters #5-8. The final exam will cover all course material with an emphasis on Chapters #9-13 as well as any other information or handouts provided during class and will be given according to the university final schedule. See the assignment schedule for exam dates. Make-up exams will generally only be given under the following provisions (however the final exam must be taken at the scheduled time during finals week):
1. You have a medical emergency or illness/injury that prevents you from taking the examination at the scheduled time. You must provide medical documentation.
2. You have experienced a death in your immediate family that you will be able to document.
3. You are participating in an official Oregon State University event. You must make me aware of such commitment within two weeks of the scheduled exam date.
4. You experience some other unknown extreme circumstance that may require a make-up exam at my discretion. Under no circumstances will exams be rescheduled due to recruiting activities.
The following items may be brought into the exam:
· Calculator
· Pencil, highlighter and eraser
I will inform you in advance of the each of the exams if additional information or materials, if any, will be allowed to be brought to the exams. I will provide any necessary tax rate schedules as well as other items that may be announced during class.
Income Tax
Return: The income tax return has three phases. Check the tentative assignment schedule for due dates. You will need to prepare the income tax return in spreadsheet format rather than on the income tax returns. I will discuss the specific requirements throughout the term.
Special Assignments: The special assignments include two research problems, a tax planning/analysis situation and preparation of an income tax return and worth the total points toward your grade as is indicated on the tentative assignment schedule. Your ability to communicate your knowledge is essential to a successful career. In addition, your ability to find answers to technical questions in a timely matter will determine your success in accounting or any other career that you choose. The purpose of the special assignments is to teach you how to research and communicate your findings in a professional manner, to analyze a situation and provide advice and to understand how to prepare a basic income tax return. All special assignments are due 15 minutes after class starts. No late assignments will be accepted except for situations similar to make-up exams discussed above. All assignments must be in professional format which means typed, proof read, clear, and accurate. I will inform you any additional specific requirements and the basis of how points will be awarded for these projects during the term.
Problems
Assignments: These are problems which I have selected to reinforce the concepts covered in lecture and reading. Some of the problem assignments may be reviewed in class. You may find it necessary to complete additional homework in order to grasp the concepts. The purchase of this textbook provides you with free access to http://murphy.swlearning.com. On this website you will fine an on-line tutorial that will help you evaluate your grasp of the covered concepts. In addition, I strongly suggest that you focus on the many examples and solutions given in the text. The book is excellent in its reinforcement of concepts through numerous examples throughout the chapters. If you wish to work additional problems in the text, I am happy to make the solution manual available to you before or after class as well as during office hours.
There are a total of 130 questions in the Problems Assignments. Each question is worth 1 point toward your final grade. Certain questions have multiple parts and each correctly answered part will be awarded a partial point. Therefore it is possible that you may get 1/4, 1/3, 1/2, 3/4, etc. on a multiple part question. You may either handwrite or type your homework. Be aware that if I can not read your homework, it will not be graded and you will receive a score of 0. You may not resubmit homework if it is rejected as unreadable. You may wish to keep copies of your homework sets as they may not be returned to you before your exam. Problem Assignments will be graded and scored for accuracy. The Problem Assignments are due within 15 minutes after class starts. No late assignments will be accepted except for situations similar to make-up exams discussed above.
Working in
Teams: You may, and are encouraged to, work in teams of no more than three to complete the Special Assignments and the Problems Assignments. If you do work in a team, please adhere to the following:
1) You still must each submit individual work Please include the names of the others on your teams near the top of the (first) page and so indicate that they were your teammates.
2) Even though you are working in a team, you are encouraged to make sure that you understand the question and agree with the answer…otherwise use your own answer.
3) I understand that the ‘solutions’ to the problems included in the Problems Assignments and the Special Assignments may be available. I strongly encourage you to develop your own solutions so you learn the subject matter and you do not become subject to the academic dishonesty rules discussed below.
Academic
Dishonesty: Academic Dishonesty is not tolerated. All University regulations regarding academic honesty apply to College of Business Courses. If you cheat in any way on a test or assignment, you will receive a zero on that item and, at my discretion, your course grade maybe reduced to an F. Cheating includes copying test material, using unacceptable items during a test, copying or substantially using another students (regardless of when, where, why or how) writing or return, plagiarizing or using the ‘solutions’ to problems, assignments or the tax return provided to other students in previous classes. Academic dishonesty rules apply both to the originator and the copier. You should guard your work carefully. I do not tolerate dishonesty and any suspected dishonesty will be reported to the University and processed according to their published academic dishonesty procedures.
A Little Personal
Background: I started my accounting career with Coopers & Lybrand (now PricewaterhouseCoopers) in 1975 and was a partner in the Firm from 1983 until my retirement in 2005. I was located in Portland, Oregon throughout my entire career. I served numerous publicly and privately held clients in a variety of industries including retail/distribution, real estate, construction, food processing and manufacturing. I provided audit related services to publicly held businesses and provided audit, review and compilation services to privately held businesses as well as income tax planning and compliance services to those businesses and to their owners and key management.
I assisted many of my clients in addressing accounting, tax and operational issues such as identifying and analyzing financing alternatives, evaluation of acquisition targets, entity formation and structuring, preparing prospective financial information, evaluating capital project alternatives, developing and evaluating accounting methods and procedures and reviewing income tax planning strategies. .
I received a Bachelor of Science degree in Business Administration (with a concentration in Accounting) from Oregon State University in 1975. I currently serve on the Oregon State University College of Business advisory council as well as a member of the Oregon State Alumni Association and have also been active with the accounting program at Oregon State University making numerous presentations at Beta Alpha Psi meetings as well as being a guest lecturer in accounting classes.
I am a member of the American Society of Certified Public Accountants, Oregon Society of Certified Public Accountants, the National Council of Farmers Cooperatives, and the National Society of Accountants for Cooperatives, and was an associate member of the Financial Executives Institute. I currently serve on the complaints committee of the Oregon State Board of Accountancy.
I am a past associate member of the Associated General Contractors and the Associated Building Contractors. I am also a past Chairman of the Oregon Donor Program, past Assistant Treasurer of the Juvenile Diabetes of Oregon, past Treasurer of the Lake Oswego High School parent club and was a Little League and youth softball coach, as well as being active in other youth athletic programs, for many years.
I met my wife, Joanne, at Oregon State University, and we have been married for almost 31 years and have two daughters, Ashley and Kelly. Ashley is currently a sophomore at Oregon State University.
In my retirement I plan on doing some consulting, serve on the board of directors for a few companies and to become more involved with nonprofit/charitable activities. I am also coaching high school softball and plan on doing some traveling.
Brown – BA325 April 13, 2006
Spring 2006 VERSION No. 4
Tentative Assignment Schedule
* This schedule is subject to change. If there are changes you will be informed in class. You are responsible for all changes and other announcements made in class.
|
Date |
Topic |
Readings |
Problems Assignment Due |
Other Items Due |
|
4/3 MON |
Introduction Federal Taxation-An Overview |
Chapter 1 |
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4/5 WED |
Income Tax Concepts |
Chapter 2 |
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4/10 MON |
Introduction to Research |
Chapter 16 |
1 |
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4/12 WED |
Income Sources |
Chapter 3 |
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4/17 MON |
Review of Problem Assignment #1; Income Sources, continued; |
Chapter 3 |
2 |
Special Assignment #1 Tax Research |
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4/19 WED |
Income Exclusions |
Chapter 4 |
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4/24 MON |
Catch up and review of Chapters 1, 2, 3, 4 and 16 |
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3
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Special Assignment #2 Income/Exclusion |
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4/26 WED |
Midterm 1 Chapters 1, 2, 3, 4 and 16 |
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5/1 MON |
Introduction to Business Expenses |
Chapter 5 |
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5/3 WED |
Business Expenses |
Chapter 6 |
4 |
Tax Return Project Phase I |
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5/3 MON |
Losses-Deductions and Limitations |
Chapter 7 |
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5/10 WED |
Taxation of Individuals |
Chapter 8 |
5 |
Special Assignment #3 --DELETED |
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5/15 MON |
Mid-Term 2 Chapters 5,6, 7 and 8 |
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6 |
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5/17 WED |
Acquisitions of Property |
Chapter 9 |
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5/22 MON |
Cost Recovery on Property Property Dispositions |
Chapter 10 Chapter 11 |
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Tax Return Project Phase II |
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5/24 WED |
Property Dispositions, Continued Non-recognition transactions |
Chapter 11 Chapter 12 |
7 |
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5/29 MON |
No Class. Memorial Day |
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5/31 WED |
No Class. |
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8 |
Complete Tax Return Project Phase III |
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6/5 MON |
Non-recognition transactions, Cont Choice of Business Entity |
Chapter 12 Chapter 13 |
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6/7 WED |
Choice of Business Entity, Cont Evaluations and Course Review |
Chapter 13 |
9 |
Special Assignment #4 Tax Research Problem |
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6/12 MON |
6 PM FINAL All chapters/ lecture material Section II |
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6/15 THU |
2 PM FINAL All chapters/ lecture material Section I |
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Problems Assignment #1: Chapter 1 (14, 20, 41, 43, 46, 48, 50, 53, 55, 58, 67)
Chapter 2 (18, 22, 25, 27, 31, 33, 36, 66, 68)
Problems Assignment #2 Chapter 16 (2, 3, 37, 45, 46)
Special Assignment #1-Tax Research Chapter 16 (57)
Problems Assignment #3 Chapter 3 (44, 46, 51*, 63, 65*, 75*, 77*)
Chapter 4 (21, 24, 30*, 35, 43, 50, 52, 62*)
Special Assignment #2--Income/Exclusion Chapter 4 (86)
Problems Assignment #4 Chapter 5 (27, 29, 34, 38, 41, 44, 51, 55)
Problems Assignment #5 Chapter 6 (24, 32, 40, 42, 48, 50*, 72*)
Chapter 7 (18, 27*, 29*, 45*, 51, 57, 60*)
Special Assignment #3-DELETED
TAX RETURN PHASE II
Computation of Tax Problem Chapter 8 (97)
Problems Assignment #6 Chapter 8 (30*, 32*, 40, 42*, 46, 50*, 58)
Problems Assignment #7 Chapter 9 (20*, 25*, 28*, 34*, 49*, 66,)
Problems Assignment #8 Chapter 10 (21**, 29* 34**, 61*)
Chapter 11 (23**, 37**, 62*, 65*)
Problems Assignment #9 Chapter 12 (21*, 39*, 41, 43*)
Chapter 13 Writing assignment-- handed out in class
Special Assignment #4-Tax Research Chapter 16 (70)
* worth 2 points toward grade ** worth 3 poimts toward grade