CORPORATE TAXATION (ACCTG 833)
TU 2:30 C208
Fall 2007
INSTRUCTOR: Dr. Richard L. Ott
OFFICE: CALVIN 109 (PHONE--532-5639)
OFFICE HOURS: TU 11-12 and anytime by appointment
TEXTS: Anderson, Pope, and Kramer Federal Taxation of Corporations 2008
COURSE OBJECTIVES: The objectives of this course are for students to : (1) learn and understand
the basic principles of federal income taxation of corporations; (2) improve their research and critical
thinking skills; (3) enrich their written and oral communication skills; and (4) enhance their teambuilding skills.
Students will read and discuss the Internal Revenue Code, relevant court cases, and the textbook to
achieve the first objective. Specific topics include:
Choice of business entity
Corporate formations
Taxable years and tax accounting methods
Differences between book earnings and taxable income
Current and deferred tax provisions
Corporate tax payment requirements
Corporate tax credits and other incentives
Corporate alternative minimum tax
S corporate income allocations
Built-in taxes on S corporations
S corporation shareholder basis adjustments
Shareholder-level loss limitations
C corporation distributions
Penalty taxes on corporate accumulations
S corporation distributions
Controlled groups of corporations
Consolidated corporate tax returns
Basis adjustments to subsidiaries’ stocks
Foreign tax credits
Sourcing of income and deductions
Branches vs foreign subsidiaries
Subpart F income
Transfer pricing issues
Sales and exchanges of corporate stock
Stock redemptions
Loss limitations
Corporate liquidations
Once the students know the tax law, they will be expected to exhibit a higher level of cognitive
reasoning through the use of cases, tax planning, and testing. I am establishing a goal for us of
reaching the evaluation/synthesis stage of Bloom's Taxonomy.
Written and oral communication skills will be emphasized through presentations and participation in
class. Group work will be used to encourage team-building skills.
Department of Accounting Learning Objectives
The Department of Accounting's curriculum is designed to correspond to levels of Bloom's
Taxonomy of Cognitive Objectives. Lower levels of Bloom's Taxonomy (knowledge,
comprehension, and application) are emphasized in the lower division courses while the higher
cognitive objectives (analysis, synthesis and evaluation) are stressed in upper division/graduate
courses. This does not imply that some of the higher cognitive objectives are not reached in the
lower division courses, just that it is not emphasized. Synthesis and Evaluation are the levels of
Bloom's Taxonomy this course emphasizes. In addition, the accounting program lists ten
learning objectives for its students. These objectives are listed below with the appropriate
emphasis in this course.
1. Technical Knowledge--High
2. Critical Thinking--High
3. Ethical Standards--High
4. Teamwork--High
5. Diversity—NA (Not Addressed)
6. Accounting Origins—NA
7. Oral Communication--High
8. Written Communication--High
9. Computer Skills--High
10. Lifelong Learning--High
Class Organization
EXAMS: Three exams will be administered during the semester--two during the semester and a
final. The final will be comprehensive.
TEACHING METHOD: Although this course will utilize the lecture method to some degree, the
seminar method will be used predominately. Class participation and preparation are extremely
important in the seminar method. You are expected to have completed assignments prior to class
and should be prepared to discuss them. The satisfaction, knowledge, and skills you acquire in this
class are a function of how much you commit yourself to the course. You must be prepared to
participate in each class to succeed in this course.
GRADE SUMMARY: 2 exams @ 100 points each=
Daily quizzes
Tax Return
Research Cases and Presentation
Comprehensive final
Total
200
60
50
100
100
510
GRADING SCALE:
A= 90%
B= 80%
C= 70%
D= 60%
F= <60%
QUIZZES: Eight quizzes will be given during the semester. Quizzes are worth 10 points each and
the lowest two quizzes will be dropped.
RESEARCH CASES AND PRESENTATION: You will be assigned to a group. Each group will
research a particular area of interest in Corporate Taxation, identify key issues that have been
litigated, summarize the literature and court cases in a written report. The group will also make a
presentation to the class on the paper.
MAKE-UP EXAMS: Make-up exams will be given only to students with valid excuses. Failure to
prepare adequately for the exam or a need to leave campus early for a holiday is not considered valid
excuses.
Approval for taking a make-up exam must be obtained prior to the time of the original exam. An
exception to this policy will be made only if it can be shown by the student that it was impossible to
comply with it.
In the event that grade records and/or exams are unavailable for final grade determination purposes at
the end of the semester, the entire grade for the course will be determined by the score on the
comprehensive final exam.
Kansas State University Undergraduate Honor System: Kansas State University
instituted an undergraduate honor system in 1999. The basic difference
between the new honor system and the old one related to academic dishonesty is
that students now hold majority representation on hearing panels. This
significant change gives students ownership in the honor system and a reason
to protect the integrity of our university.
I expect you will do all academic work in this class.
any academic work unless specifically approve by me.
Do not collaborate on
On all assignments, exams, or other course work undertaken by students, the
following pledge is implied, whether or not it is stated: "On my honor, as a
student, I have neither given nor received unauthorized aid on this academic
work."
Please visit the Honor System web page for more information at:
http://www.ksu.edu/honor.
Any student with a disability who needs an accommodation or other assistance should make an
appointment to speak with me as soon as possible.
September 24, 2007--last day to drop a course without a "W" being recorded.
October 26, 2007--last day to drop a course.
The assignment schedule is tentative and subject to change.
Assignment Schedule (Tentative)
Fall 2007
DATE
WORK
T Aug 21 Introduction--Tax Research Review
U 23 Tax Research Review
Anderson and Pope (A&P) Ch 1 Review your
notes from tax research
T 28
Review of Property Transactions
Examples 1-3
U 30
Review of Property Transactions
Examples 4-7
T Sept 4
Corporate Formations and Capital Structure
U
6 Corporate Formations and Capital Structure
T
11 Corporate Formations and Capital Structure
U
13 Corporate Formations and Capital Structure
T
18 Exam 1
Quiz 1 A&P Ch 2
Examples 1 and 2
A&P Ch 2
A&P Ch 2 Debt v Equity
Presentation
A&P Problems (PR) 2-34, 2-35, 2-43,
2-45, 2-53, 2-54, 2-55 §351 Presentation
Quiz 2
U 20 Sales and Use Tax
Deloitte & Touche Charee McWilliams and Cynthia McKinney
Wisconsin Dept. of Revenue v. William Wrigley, Jr. Inc. 505 U.S. 214 S.C. (1992); Quill Corp. v.
North Dakota 504 U.S. 298 S.C. (1992)
T 25
Corporate Income Tax
Quiz 3 A&P Ch 3
U
Corporate Income Tax
A&P Ch 3
27
T Oct 2 Corporate Income Tax
A&P Ch 3 PR 3-38, 3-40, 3-43,
3-44, 3-47, 3-51
U
4
Control Groups
A&P Ch 3-52, 3-53 Control
Groups Presentation
T
9
Corporate Income Tax
Corporate Nonliquidating Distributions
Quiz 4 A&P Ch 3
A&P Ch 4
U 11
Corporate Nonliquidating Distributions
Tax return due--Pr 3-63
Using CCH software
T 16
Corporate Nonliquidating Distributions
Stock Redemptions
Ch 4 PR 4-28, 4-30, 4Nonliquidating Distributions
Presentation
U 18
Stock Redemptions
Ch 4 PR 4-35, 4-36, 4-44,
4-46, 4-51 Stock Redemption
Presentation
Quiz 5
T 23
Other Corporate Levies
AMT
Personal Holding Co. Tax
Accumulated Earnings Tax
A&P Ch 5 PR 5-45, 5-46, 5-48
Examples 1-6
U 28
Other Corporate Levies
AMT
A&P Ch 5 PR 5-54, 5-58, 5-61
PHC Presentation AET
Presentation
Personal Holding Co. Tax
Accumulated Earnings Tax
T 30
Exam 2 Chapters 3, 4, 5 and SALT
U Nov 1 International Tax (Dan Friederich Grant Thornton)
A&P Ch 16
T
6
International Tax (Dan Friederich Grant Thornton)
A&P Ch 16 PR 16-35,
16-36, 16-37
U
8
S Corporations
Quiz 6 A&P Ch 11
T 13
S Corporations
A&P Ch 11 PR 11-36, 11-37,
11-41, 11-43
U 15
S Corporations
A&P Ch 11 PR 11-49, 11-52,
11-53 S Corp Presentation
T
20
Consolidated Tax Return
Quiz 7 A&P Ch 8
U
22
Thanksgiving Holiday
T
27
Consolidated Tax Return
A&P Ch 8
U
29
Consolidated Tax Return
Presentation—Corporate
Acquisitions and Reorganizations A&P Ch 8
PR 8-32, 8-39, 8-48,
8-49, 8-50
T Dec 4 Corporate Liquidations
U
6
F 12
Corporate Liquidations
Quiz 8 A&P Ch 6
Examples 1-4
A&P Ch 6 PR 6-38, 6-39
6-40, 6-43, 6-45
Examples 5-7
Comprehensive Final 9:40-11:30
Suggested Areas of Research
§351
Debt vs. Equity
Control Groups
Corporate Nonliquidating Distributions
Stock Redemptions
Personal Holding Co. Tax
Accumulated Earnings Tax
S Corporations
Corporate Acquisitions and Reorganizations
The above topics will be assigned on a first come-first serve basis. You can choose an area not
on the list with my approval.
You should identify the key issues that have been litigated in your area and summarize the major
court cases. A group paper is due at the time you make a presentation to the class. See syllabus
for due dates. The paper is weighted 75% and the presentation 25%. Presentations should not
exceed 15 minutes. See me if this time limit is a problem.