Accounting and MIS 3400: Tax Accounting I Course Syllabus – Spring 2014 Section 0010 - Monday and Wednesday 11:10 AM Section 0020 - Monday and Wednesday 12:45 PM Section 0030 - Monday and Wednesday 4:10 PM Section 0040 - Monday and Wednesday 5:45 PM - 12:30 PM - 2:05 PM - 5:30 PM - 7:05 PM - Converse Hall 0139 - Converse Hall 0139 - Schoenbaum Hall 300 - Schoenbaum Hall 300 Instructor, first half of semester: Office: Phone: E-mail: Office Hours: Twitter: Jeff Hoopes 448 Fisher Hall 614-688-8679 (office) hoopes@fisher.osu.edu (preferred method of contact) 2:30 PM to 3:30PM Wednesday @taxnotions Instructor, second half of semester: Office: Phone: E-mail: Office Hours: Twitter: Stephanie Lewis 342 Fisher Hall 614-292-3903 (office) lewis.1819@fisher.osu.edu (preferred method of contact) 2:30PM to 3:30PM Wednesday @osucpa Course Materials: Required textbook - Hoffman, Smith, 2015 ed. South-Western Federal Taxation 2015: Individual Income Taxes, 38th Edition There are at least two purchase options: 1. You can order the textbook bundled with CengageNow or you can purchase only Cengage Now acesss, which includes access to a digital copy of the textbook (at a slightly lower price). You can find these purchase options by entering the ISBN 978-1-3052-5032-1 at the following URL, http://www.cengagebrain.com. 2. You can purchase the textbook at the university bookstore. Note that you MUST purchase a current copy of the textbook and have a valid access code to CengageNow. CengageNow access cannot be purchased separate from the digital textbook. Course Description: This course covers the fundamentals of federal income tax. Emphasis is on individuals and businesses organized as proprietorships, but the rules generally applicable to all taxpayers are covered. Prerequisite: AMIS 3200 (521) (Intermediate Financial Accounting) or equivalent. A Team Taught Course: This course will be taught by Jeff Hoopes and Stephanie Lewis. In many respects, their teaching style will be the similar. However, differences will exist. While some differences will exist, we are closely coordinating the material we teach, have the same group rules for the class, and will both be mutually responsible for assigning a final grade. Course Objectives: This course is designed to acquaint the student with the workings and concepts of the federal tax law, especially as it pertains to individuals and business entities and to introduce the student to the workings of the U.S. tax system. Emphasis will be on learning the concepts underlying the tax law, using the current tax formula and its elements, applying tax law to decision models and incorporating tax planning principles into decision-making opportunities. Given that ignorance of the tax system comes with considerable financial cost, this course should be of interest to anyone that prefers having more wealth rather than less. Students are assumed to be interested in becoming business advisors, with an emphasis on financial and accounting subject matters. No previous tax education is assumed. The course will not turn the student into a tax expert, nor is it designed to completely prepare one for the CPA exam. The concepts and work habits acquired will form a solid foundation for further study and practice. Course Methods: AMIS 3400 is conducted primarily in lecture/discussion format. Our job is to help you understand key concepts and issues. We will explain and illustrate important concepts in a lecture-like format, and we will attempt to engage you in dialogue through answering and asking questions and working through problems in class. Your job is to be prepared for every class by reading (in advance) the relevant chapter and completing the assigned problems. Class sessions will be most productive if you come to class with a basic understanding of the concepts being covered. In-class quizzes will help sharpen your incentives to come to class prepared, both having reviewed material previously covered, and having read through the text in advance. Lecture time is intended to help you focus on the details and technicalities needed to understand and retain the information. You are encouraged to ask questions and be actively involved in class discussions. Due to the need to clear out the room for the next class, there will be no time to ask questions after the lecture has ended. You are responsible for everything said in class (in addition to the required reading and assignments). If you miss class, be sure to get the notes from a classmate. No accommodations will be made for late arrivals or absences. Regular class attendance will improve your chances of meeting the course objectives, doing well on exams, and being a useful and productive member of society. Taxes are complicated: Taxes are complicated. Our class will hopefully not be. However, because of the technical and challenging nature of the course, it is important that students stay up to date on assignments, reading, and understanding. It will simply not work to come to class, breeze through homework assignments, and expect to cram the night before the exam. You simply cannot do it. Don’t try. 2 Course Communication: Course information and assignments will be communicated via Carmen and university e-mail, so it is important that you regularly check your accounts. You can assume that we will take at least 12 hours to respond to an email, so, emails sent minutes before an answer is needed (i.e. five minutes before a homework assignment is due) may not yield a useful response. Professionalism/Participation: Attendance and being actively engaged in class is expected in the business world and it is expected in this course. This objective of this course is not merely to instill tax knowledge, but, help prepare you to communicate and engage in the real business world. Given this objective, you are expected to respond to and ask questions. We will routinely ask questions of the class. Responding with the “right” answer is not the objective, but rather engaging and learning together. Overcoming inhibitions relative to speaking in a group will help you in this class, and in life, and will help improve your grade. We reserve the right to cold-call students in class. Be prepared, on task, and listen. Behaving as a professional is expected in this course. Cell phones must be silent during lectures. The laptop policy of the class will be determined by the way in which we see laptops being used in class. Initially, you may use them to take notes, etc. If they are creating a distraction, they will be banned.1 Students creating a distraction for others will be asked to leave the classroom. You can expect that we will, at random, take attendance throughout the quarter. If you are late or absent on an attendance day, you will lose those points. If you are unable to attend a particular class, you should notify the instructor currently conducting lectures in advance via e-mail to minimize the chance you will lose points due to this policy. Depending on the reason for the absence, advance notice will not always result in an excused absence. Lack of professionalism and lack of preparedness will be considered on a student-by-student basis. Failure to attend class and interruptions of class by arriving late and/or leaving early, talking, or other disruptive/unprofessional behavior will result in a reduction of the total possible points in determining your final grade. All point reductions are at our sole discretion and are final. In Class Quizzes: We will occasionally have in-class, unscheduled quizzes. There will be 10 throughout the semester. Some may be as simple as writing your name down. Some may require substantial calculations based on material we have covered in class and will mirror the rigor of questions you can expect on the test. The top 8 quizzes will count toward your final grade. There will no retakes of quizzes, and if you are absent or late the class the day of a quiz, you will receive no credit for that quiz. 1 If you plan on succeeding in the business world, you will frequently attend meetings with a laptop; therefore, you must learn to stay on task, despite having a laptop in front of you. 3 Taxes in the News: Taxes are constantly in the news. Type “tax” into Google News, and you will get well over 100,000,000 hits. Politicians propose changes to taxes, reports come out suggesting how the current tax system is affecting things, companies are accused of being too aggressive, celebrities are accused of tax misgivings, etc. Students are encouraged to follow current events related to taxes.2 To this end, students will have a write-up due related to current event related to taxes. It should be at least two pages, and probably no more than three pages. Do anything you want with it. Possibilities: Write an essay outlining how the event relates to something we have learned in class If a taxpayer is being accused of misgivings, pretend you are the taxpayer, and respond to the accusation Pretend you are a politician, and outline your support/critique of a current tax legislative proposal Play the role of a taxpayer who would be harmed/helped by a current legislative proposal, and explain your stance on the tax Assume the position of a professor, and outline a research project that would answer some interesting question related to taxes Be a public relations consultant, and explain to a corporation their best response to a negative tax-related article in the press (or the best response of the IRS to their ongoing struggles to gain the public trust) Summarize the technical aspects of a tax-related phenomena that was not technically well explained in the popular press Summarize how a left leaning tax advocacy group gets all their tax facts wrong in a recent press release Summarize how a right leaning tax advocacy group gets all their tax facts wrong in a recent press release Something else Your goal should not be to try to figure out what we want to see done for this assignment and do it. Rather, it should be to do something amazing, and make us want to see it. Technical correctness, creativity and proper English and grammar will all be considered in assigning grades. This assignment is due March 14th at midnight. Tax Tweets: In order to help keep up to date on tax related current events, students should follow 5 tax related tweeters, and tweet five times about a tax related current event, story, or phenomena. The deliverable for the assignment is the content of your tax tweets, pasted into a document, which will be due April 15th at midnight (no filing for an extension will be possible—don’t bother with the Form 4868), as well as a list of the 5 tax related tweeters you followed.3 2 A great source of tax-related news is the blog http://taxprof.typepad.com/ There are many tax related twitter accounts. For example: @abataxsection, @accountingtoday, @austan_goolsbee, @brookingsecon, @catoinstitute, @grovernorquist, @heritage, @irstaxpros, @kimdixontax, @natptax, @socaltaxprof, @taxanalysts, @taxanalysts, @taxmama, @echasan, @janetnovack, @jbarro, @lenburman, @taxgirl, @taxjustice. If students do not care to tweet, a blog post or Facebook status would also be fine to fulfill the requirement of the class. If students are not engage in any social media, students can compose letters about taxes to friends or family members. 3 4 Homework: Most graded homework assignments will be administered online using CengageNow. These assignments are technical in nature and are like textbook problems. The homework assignments must be completed on your own without assistance of any individual. You may use your textbook and class notes. The individual homework assignments are to be completed online using CengageNow by midnight on the due dates listed on the assignment schedule (generally Saturdays). Instructions for signing up for a CengageNow account are provided on the final page of this syllabus. All online assignments completed with 60% accuracy will receive full credit; assignments completed with less than 60% accuracy will receive no credit. You will get four attempts to complete each homework assignment. If you are unable to submit your homework ON TIME and electronically, no credit will be given for the assignment. No hard-copy submissions will be accepted and make-up assignments will not be given under any circumstance. Realize that understanding only 60% of the material will not bode well for your exam score. Your lowest homework grade will be dropped. If you miss a homework deadline for any reason, you will receive zero points for that assignment, and you may drop that grade, and no others. You can obtain your results from your assignments after the deadline through your CengageNow account. We reserve the right to assign homework for in-class discussion. These assignments will generally not be collected. However, we reserve the right to collect assigned problems during the semester. Failure to vigorously attempt the homework problems will not only affect your exam performance, but it may also cause you to lose points from the participation portion of your final grade. Determination of what constitutes an adequate attempt of assigned problems is left to our sole discretion. There is absolutely no reason everyone in the class should not get 100% of the points on homework. Yet, in past semesters, not having completed all the homework versus having completed all the homework has made a substantial difference in students’ grades. Just do the homework. Exams: Two exams will be given on the dates indicated on the assignment schedule, and will be administered the evening of the date listed on the calendar (specific times and locations will be provided in advance of the exam). The exams will test the application of knowledge acquired from class lectures, reading assignments, homework assignments and class discussions. You may bring your printed textbook and class notes to the test (no electronic devices allowed). However, the test will be designed so that you will simply not have enough time to look up the answers to every question. You will not have time to look up the answers to all the questions on the exam, and students who try routinely perform poorly on the exam. If you miss an exam for a university-excused absence (e.g., severe sickness, death in immediate family) and provide sufficient documentation to support your situation, presumably beforehand, you will receive an excused absence. Absences for any reason not listed above must be approved by the instructor conducting lectures in advance, in writing, in order to be treated as an excused absence. Vacations do not constitute a valid reason for missing an exam, and you must take the final exam on the date/time noted on the syllabus. Those very few (if any) students receiving an excused absence will be given a make-up exam. The make-up exam will be scheduled within one week of the original exam date. Make-up exams are often different than the exams given during the normally scheduled time and may be more difficult than the original exam. If you receive an 5 excused absence from the final examination, you will receive an incomplete grade until you complete a make-up exam. Unexcused absences from exams will result in a grade of zero. The key is to communicate. If you something comes up, let us know. Course Grade: THERE WILL BE NO UNSOLICITED EXTRA CREDIT WORK. We reserve the right to give out extra credit for anything. If you ask for extra credit, you will not receive it. Your final grade in this course will be determined by the total points you earn. The maximum points you can earn from each are as follows: Professionalism/Participation Quizzes Homework Taxes in the News Tax Tweets Test 1 Test 2 Total 20 points 20 points 40 points 15 points 5 points 50 points 50 points 200 points These points will be used to rank-order you relative to your peers. However, final grades will be determined based upon a student’s relative performance to his or her peer group and without regard to the percentage of total points earned. Following the first exam, students will be told their ranking in the class, and an approximate grade they would be assigned if the course ended that day. You will note that half of the grade is comprised of the two tests. As such, to reiterate, it will simply not work to try to cram for the test. Any student who is routinely absent from class or fails to complete the final exam for unexcused reasons may receive a final grade of “E,” regardless of the student’s performance on other graded material. Grade Disputes: It is your responsibility to ensure grades reflect your score on any particular assignment. Any concerns or questions about grading on an exam must be resolved within one week after the graded exam is returned in class. These disputes must be submitted IN WRITING to the instructor. This time frame applies whether or not you were present in class to receive your graded exam. Individual grading issues will be handled outside of normal class time. Regrading of an exam may result in a positive or negative adjustment to the previous score. Notification of Scores and Final Grades: The results of any graded materials, including final grades, will not be given by the instructor to individual students via phone, e-mail or prior to the initial returning of the assignment in class. Final grades will be available online from the Registrar within one week following the end of the semester. Academic Misconduct: Academic misconduct will not be tolerated. According to University Rule 3335-31-02, all suspected cases of academic misconduct will be reported to the Committee on Academic Misconduct. This 6 includes receiving assistance on ANY graded assignment from any outside source or individual other than your instructor. Restricted and Permitted Course Materials: Use of inappropriate study materials, including previously prepared solutions and copies of (or files containing) homework and/or test questions used during previous terms compromises the concept of equal opportunity for all students and therefore is prohibited. Be careful, as the tax law changes on a year to year basis, and, thanks to our beloved Congress, what was a correct answer last year may well not be correct this year. You may use materials that generally are available to all students provided that they maintain the spirit of the learning objectives. Materials distributed to students via Carmen or in class may be used only by students enrolled in AMIS 3400 this semester. You may not distribute any of these materials to any others at any time, or you will be subject to disciplinary action. Office Hours: Professor Hoopes will have his office hours at 2:30 PM to 3:30PM on Wednesday. Professor Lewis will have her office hours 2:30 PM to 3:30PM on Wednesday. It is your responsibility to keep up with the course material and to ask questions in a timely manner. Please keep in mind that our time is not a substitute for completing the required readings. In consideration of other students’ needs, you should limit your visits during office hours to 10 minutes. Office hours are not personal tutoring sessions, but rather, opportunities for specific questions to be answered in a more private setting. Use of office hours may count for or against a student’s Professionalism/Participation grade. Tutor Hours: There will be weekly help sessions conducted by the TA, where students can ask questions about what is covered in class, get help on homework, and generally learn about taxes. The time for this session will be determined after class starts, based on student availability. Disability Services: The Office of Disability Services verifies students with specific disabilities and develops strategies to meet the needs of those students. Students requiring accommodations based on identified disabilities should contact the instructor at the beginning of the quarter to discuss his or her individual needs. All students with a specific disability are encouraged to contact the Office of Disability Services to explore the potential accommodations available to them. Disenrollment: University Rule 3335-8-33 provides that a student may be disenrolled after the third instructional day of the quarter, the first Friday of the quarter, or the student’s second class session of the course, whichever occurs first, if the student fails to attend the scheduled course without giving prior notification to the instructor. Teaching Plan and Assignment Schedule: The following schedule is subject to change; changes will be announced in class and posted on Carmen, and will be made well in advance of the actual class being changed. Items listed in the assignment column of this schedule are action items necessary to prepare for class on the corresponding day. 7 Class # Day Date 1 Mon 12-Jan 2 Wed Mon 3 Wed 4 Mon 5 Wed 6 Mon 7 Wed 8 Mon 9 Wed 14-Jan 19-Jan 21-Jan 26-Jan 28-Jan 2-Feb 4-Feb 9-Feb 11-Feb Chapter/Topic Reading Assignment Course Introduction / Introduction to Taxation Chapter 1 Lecturer Hoopes Ch 1, Ch 2 Sec 2-1, & Ch 3 Hoopes goo.gl/1Slhbo Chapter 3 Chapter 3 Chapter 4 Chapter 4, 5 Chapter 5 Chapter 5 Chapter 6 Hoopes Hoopes Hoopes Hoopes Hoopes Hoopes Hoopes Chapter 7 Chapter 8 Chapter 8 Chapter 8 Hoopes Hoopes Hoopes Hoopes Chapter 9 Chapter 9 Chapter 10 goo.gl/Jrg9z3 goo.gl/Jrg9z3 Chapter 10 Chapter 11 Chapter 11 Chapter 13 Chapter 13 Chapter 14 Chapter 15 Chapter 15 Chapter 16 Chapter 17 Lewis Lewis Lewis Mon Wed Mon Wed Mon 16-Feb 18-Feb 23-Feb 25-Feb 2-Mar Part of Ch2, Ch 3, Tax Formula and Tax Determination Martin Luther King Day - No Class Ch 3, Tax Formula and Tax Determination Ch 3, Tax Formula and Tax Determination Ch 4, Gross Income and Inclusions Ch 4, Gross Income and Inclusions, Ch 5 Ch 5, Gross Income: Exclusions (continued) Ch 5, Gross Income: Exclusions (continued) Ch 6, Deductions and Losses: In General Ch 7, Deductions and Losses: Certain Business Expenses and Losses Ch 8: Depreciation, Cost Recovery, Amortization and Depletion Ch 8: Depreciation, Cost Recovery, Amortization and Depletion Ch 8: Depreciation, Cost Recovery, Amortization and Depletion Test 1 - No Class 15 Wed 16 Mon 17 Wed Mon Wed 18 Mon 19 Wed 20 Mon 21 Wed 22 Mon 23 Wed 24 Mon 25 Wed 26 Mon 27 Wed 28 Mon 4-Mar 9-Mar 11-Mar 16-Mar 18-Mar 23-Mar 25-Mar 30-Mar 1-Apr 6-Apr 8-Apr 13-Apr 15-Apr 20-Apr 22-Apr 27-Apr Ch 9: Deductions: Employee and Self-Employed Related Expenses Ch 9: Deductions: Employee and Self-Employed Related Expenses Ch 10, Deductions and Losses: Certain Itemized Deductions Spring Break - No Class Spring Break - No Class Ch 10, Deductions and Losses: Certain Itemized Deductions Ch 11, Investor Losses Ch 11, Investor Losses Ch 13, Tax Credit and Payment Procedures Ch 13, Tax Credit and Payment Procedures Ch 14, Property Transactions: Determination of Gain or Loss Ch 15, Property Transactions: Nontaxable Exchanges Ch 15, Property Transactions: Nontaxable Exchanges Ch 16, Property Transactions, Capital Gains and Losses Ch 17, Property Transactions: Section 1231… Test 2 - No Class 10 11 12 13 14 Homework # Homework due (at midnight) None Homework #1 1/24/14 Homework #2 2/2/14 Homework #3 2/7/14 Homework #4 None Homework #4 2/21/14 Homework #5 2/28/14 None Homework #6 3/14/14 None Lewis Lewis Lewis Lewis Lewis Lewis Lewis Lewis Lewis Lewis Homework #7 3/28/14 Homework #8 4/4/14 Homework #9 4/11/14 Homework #10 4/18/14 None