This course continues Tax Accounting for federal income tax for individuals and business taxpayers. Topics include federal tax research, tax practice and ethics, tax written communication, tax accounting methods and periods, reconciliation of tax and financial methods, tax elections, current tax laws governing alternative minimum tax for individual and corporate taxpayers, and property transactions. This course is the second of three tax courses that prepare students for individual and business decisions relating to federal taxation, the IRS Tax Return Preparer Competency Exams, and the Federal Tax Regulation Section of the Certified Public Accountant (CPA) Exam. Prerequisite: ACCT 235. (3 hours weekly)
Fees This course has fees totaling $30.00.
Instructor Dorothea Malloy CPA MST CGMA
Office DH 132
Overall Course Objectives:
Upon completion of this course, the student will be able to:
1. Analyze research results that involve the Internal Revenue Code, Income Tax Regulations, and federal court tax cases.
2. Prepare a tax research written document.
3. Interpret and apply professional and ethical obligations for tax practice including Circular 230, AICPA Statements on Standards for Tax Services, and rules & regulations related to tax return preparers.
4. Determine proper tax accounting periods for various taxpayers.
5. Distinguish and evaluate methods of accounting for tax and financial accounting.
6. Prepare reconciling schedules for financial and tax accounting methods.
7. Apply time value of money principles to various tax accounting methods.
8. Describe and examine FAS 109 Accounting for Income Taxes (ASC 740).
9. Compare tax treatments of property transactions.
10. Evaluate alternative minimum tax for individuals and corporations.
11. Recommend alternative tax treatments that affect economic decisions.
I. Tax Research of authoritative hierarchy including the legislative process
II. Ethics and Responsibilities in Tax Practice
a. Treasury Department Circular 230
b. AICPA Statements on Standards for Tax Services.
c. Internal Revenue Code, Regulations related to Tax Return Preparers
III. Accounting Periods
IV. Accounting Methods
a. Recognition of Revenues and Expenses under Cash, Accrual, or other permitted methods
b. Inventory valuation methods including Uniform Capitalization rules
c. Accounting for Long Term Contracts d. Installment Sales
V. Differences between Tax and Financial Accounting
a. Reconciliation of Financial Income to Taxable Income
b. Cash Flow and Time Value of Money application for various tax accounting methods
VI. FAS 109 (ASC 740) Accounting for Income Tax
a. Reporting Income Tax Expense, Tax Liability, Deferred Tax Liability, Deferred Tax Asset
VII. Federal Taxation of Property Transactions
a. Types of Assets
b. Basis and holding Periods of Assets
c. Taxable and Nontaxable Sales and Exchanges
d. Amount and Character of Gain/Losses and Netting
VIII. Alternative Minimum Tax Calculations
IX. Tax Planning
a. Alternative treatments
b. Projections of tax consequences
c. Role of taxes in Decision Making
The course format includes but is not limited to the following:
This course does not have a face-to-face orientation. Orientation is provided during first week of online class.
Comprehensive Federal Taxation with MyAccountingLab 2014 by Pope ISBN 9780133438598
MyAccountingLab Online Course materials are required for this course. A student access kit is included in all books purchased from the HCC bookstore.
Semester exams will be given during the term. The final exam will be given during final exam week. Students are expected to take all exams at the Howard Community College Test Center on campus