22SP_AC341A-Income Tax I

Course Syllabus

AC-341-A: Income Taxation I/Individual Taxation

Spring 2022

Instructor: Samuel McGarr                        Office: Harbert 203-A

Email: shmcgarr@bsc.edu                         Office Hours: M&W 10-11am, 1:30-3pm & by appt.                                                                                 

Phone: O 205-226-4817, C 205-807-4842                       

Meeting Time                                               Location

M&W 11:00am – 12:20pm                             Harbert 227

Textbook

Our textbook is Taxation of Individuals (2022 Edition) by Spilker, Ayers, Barrick, Outslay, Robinson, Weaver, and Worsham (McGraw Hill).

• ISBN 978-1-264-36892-1 (bound edition)

• MHID 1-264-36892-5 (bound edition)

• ISBN 978-1-264-36899-0 (loose-leaf edition)

• MHID 1-264-36899-2 (loose-leaf edition)

• ISSN 1943-9318

The tentative class schedule shows the material intended to be covered during each class period and may require adjustment as the course progresses. Any changes noted will be communicated to the class.

Course Prerequisite: AC 221

Course Introduction and Objectives

The primary objective of the course is to provide an basic understanding of major issues relating to federal individual income taxation, with an overview of tax authorities and tax planning.

Learning Objectives

This is an introductory tax course designed for students of accounting. This course will provide a framework for understanding our federal income tax system from both a tax policy and tax planning perspective. The objectives for this course are four-fold:

1.    Apply the conceptual standards of tax policy;

2.    Apply federal tax laws with respect to the timing, measurement, and character of income and expenses;

   3. Calculate individual income tax liability using various tax rates; and

   4. Develop a framework for incorporating tax considerations into personal and business decisions.

Both personal and business decisions and transactions have tax consequences. Therefore, knowledge of the tax law can facilitate effective decision-making among taxpayers. The nature of the course necessarily relies on U.S. tax provisions (e.g., the Internal Revenue Code, Treasury Regulations, case law, and other guidance). However, the goal is not to memorize specific provisions and exceptions, but to understand how to apply the fundamental tax rules in economic situations, including tax planning and compliance.

Lectures and Lecture Notes

Lecture Notes

I will post electronic materials for this course on our course website.  Please print out or bring electronically the notes/outline to class as it will facilitate your note taking.

Lectures

Please check the website often as I will use it for updates, schedule changes, grades, upcoming events, notes, assignments, and announcements. I will also post solutions to the recommended homework problems on the course website.

Contact

If you need to contact me outside of office hours or class, please use email or call me. 

Students with Adjustments/Disabilities

If you are registered for adjustments, please make an appointment with me as soon as possible to discuss accommodations that may be necessary. During this discussion, you are not expected to disclose any details concerning your disability though you may discuss these details at your discretion. If you have a disability but have not contacted the Coordinator of Accessibility, please call 226-7909 or visit in Student Service in the Norton Center. 

Grading Policy

The course is organized as outlined in the below (tentative) schedule. The schedule contains the required readings and recommended problems. Additional problems or readings may be assigned as time and interest dictates. Your grade for this course will be determined using the following allocation:

                        Assignment

                        Exams

                             Exam One                                                               20%

                             Exam Two                                                               20%

                             Final Exam                                                              20%

                        Class Participation/Professionalism                             10%

                        Quizzes - 4 given throughout the semester                10%

                        Project/Service First                                                      20%

Exams

This course has two mid-term exams and a final (non-comprehensive) exam. The mid-term exams are scheduled during in-class on the dates listed in the below schedule. You will be evaluated on both comprehension and analysis of the material covered in class and the assigned problems. If a concept has not been covered in class, it will not appear on an exam.

The exams will consist of multiple workout problems, and you will be able to use a calculator, scratch paper and other information as determined. Using a copy of someone else’s notes or discussing the exam problems with a classmate during the exam will be considered academic dishonesty.

Please see me if you will miss an exam. Make-up exams will be given only if you miss an exam for cause. If you miss an exam without cause, no make-up exam will be given and you will receive a zero on the exam.

Grade Appeals: I will make every effort to ensure that grading is as objective and fair as possible. If you believe that I have made an error in grading your exam, please submit, in writing, an appeal within one week of receiving your exam score. Please specify the problem(s) that is (are) of concern and include a description of the grading error.

Class Participation

My aim is to facilitate a learning environment that stimulates discussions about current tax law, application of the tax law, and tax planning. It is my responsibility to teach the course; it is everyone’s responsibility to facilitate learning. Class will be more enjoyable if we have an active discussion in which everyone can participate in an informal way, so please do not hesitate to ask any relevant question.

To motivate discussion, preparation, and attendance, a portion of your grade is based upon class participation and professionalism. While attendance is not mandatory, it is encouraged as the plans (at least for now) are to hold the class in person, while obviously adhering to the College’s policies related to Covid-19. We will review these policies at the beginning of our first class. 

It is preferable if you attend class in person (subject of course to BSC’s COVID protocol), but we can utilize Microsoft Team Meeting for students that are not able to attend in person. Please let me know if you will not be able to attend a class in person so appropriate accommodations can be made. 

Quizzes

To allow you to assess your level of understanding of the material, we will have four quizzes during the semester. These quizzes are meant to serve as a method to help you determine your level of preparation. Each quiz will cover material previously discussed during class.

Projects

We will complete a tax project during the course. The purpose of this assignment is to help you integrate the concepts covered in the course into practice. The project will be to volunteer to assist needy taxpayers in preparing their 2021 income tax returns. This is a great opportunity to assist people that need help through a community service opportunity that will utilize tax skills that you learn and will expose you to the tax profession. It will require two 4 hour training sessions plus pass an examination (to be taken virtually via Zoom) as well as participation on volunteer shifts. It will be through participation in the SaveFirst program administered by Impact America. See https://impactamerica.com/. I will share additional details in an email before our first class. If you are not available to participate in either the training or the volunteer opportunity because of scheduling conflicts, please notify me as soon as possible. In order to be certified to perform the volunteer work, you will need to complete the two 4 hour training sessions plus pass the examination no later than 2/11/2022. This compressed timeline is unavoidable due to the pending 2021 tax return due date of April 18, 2022.

Recommended Homework Problems (not graded)

Below is a list of recommended problems from each chapter of the textbook that we will cover during the course. Although these problems are not required, I recommend that you complete them as we go through the material because these problems are designed to give you additional opportunities to practice and understand the material covered during class. Solutions to the recommended problems will be available on the course website after each respective chapter lecture is completed.

Honor System/Academic Integrity

 General: All students, faculty, and staff are bound by BSC’s Honor Code. Upon admission to the College, each student signs a pledge indicating his or her allegiance to the Honor Code.

 The formal language of the Honor Code exists in the Honor Pledge that students sign when they enter the College, stating that they will not lie, cheat or steal as a member of the community nor tolerate those actions in their peers. They are also required to properly report any infractions. Please refer to your Student Handbook for details.

 You are also expected to agree to all examinations, quizzes and projects submitted the pledge that: “I have neither received nor given aid on this work, nor have I witnessed any such violation of the Honor Code.”

Exams: Each student is expected to complete the exams independently during the designated exam period. Students should not refer to other students’ exam solutions or discuss the exam with other students during the exam period. Each student may bring information to the exams as will be communicated. Students who have taken an exam are prohibited from discussing the exam with students who have not yet taken the exam.

Quizzes: Unless specifically authorized, each student is expected to complete the quizzes independently during the designated time frame. Students who have taken a quiz are prohibited from discussing the quiz with students who have not yet taken the quiz.

Projects: For the class project, please complete it independently.  

Tentative Class Schedule

This tentative class schedule shows the material intended to be covered during each class period and may require adjustment as the course progresses. We will make any changes needed as we progress throughout the course. Also on April 7, 2022 there will be a special event - a guest lecture by Miles Copeland at 7 pm and you are invited and encouraged to attend this special event. 

                                                   Recommended Problems

Chap 1               1,2,4,5,8,10,12,16,17,24,34,35,45,57,60

Chap 2               8,9,10,13,18,24,25,62

Chap 3               1,2,3,6,8,9,10,11,18,21,27,28,29,30,31,32,40,41,43,54,

Chap 4               1-14,17,27,28,30,34,42,45,46,50,57

Chap 5               1-7,10-14,17,18,21,23,26,28,29,33, 35,37,39,40,43,45, 48,49,55,58,68,70

Chap 6               1-4,13,15,17,19,23,25,26,29,32-34,39,42,46,50,57

Chap 8               2,4,5,6,12,13,15,19-25,27,39,42,45,47,50,57,60,63,66,78,79

Chap 9               1,3,5,6,8-11,13,18,19,21,23,24,26,28,29,34,38,46,49,50,52,56,62,67

Chap 7               1-3,8-18,23,25-27,29,30,33,41,41,44,46,51-53,56,62

Chap 10              1-4,6,7,9,11-13,15,20-22,25,32,33,38.39,45,48,52,53,56,59,71,73

This section provides a course overview as well as an overview of individual income taxation. Topics covered include tax planning techniques, tax authorities as well as as conceptual foundations of both income and deductions resulting in the calculation of taxable income. Also included are the measurement of effective, average and marginal tax rates. 

Individual income tax calculation with credits, an overview of business and personal income tax income and deductions, and the taxation of investment income and gains and losses. 

Overview of Federal Income Taxation relating to asset acquisitions and dispositions.