TROY UNIVERSITY
SYLLABUS
SORRELL COLLEGE OF BUSINESS
TAX 6687 MSVA
TAX 6687 DSVA
TAX 6687 TXVA
Tax Practice and Procedure
Spring 2011 (January 9, 2012 – May 8, 2012)
Instructor: Alan D. Campbell
Office: Montgomery Campus, Bell Building, 425C
Office Hours: Monday 1:00 p.m. to 5:00 p.m.
Office Telephone: 334-241-5922
Home Telephone: 334-450-0020
Cell Phone: 334-595-3975
Email: adcampbell@troy.edu
Time and Location: Monday 7:55 p.m. to 10:25 p.m.
336-B Wallace Hall
Prerequisites
ACT 4494, Income Tax Accounting I and ACT 4495, Income Tax Accounting II and
Admission into the Master of Taxation program
Prerequisite or Corequisite
TAX 6684 Federal Tax Research
Description
This course is a study of the IRS tax assessment and collection process, including the
examination of tax returns and the appeals process. The course covers the statute of
limitations on assessment, collection, and refund claims. The course explains the legal
and ethical requirements for practice before the IRS. The course covers the civil and
criminal penalties that the IRS may impose on taxpayers and tax preparers and strategies
for avoiding them. The course requires the preparation of a sample protest letter for a
conference with the IRS Appeals Division regarding a proposed tax deficiency.
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Objectives
On completion of the course, the student should be able to:
1.
2.
3.
4.
5.
Explain the statute of limitations for additional assessment of income tax.
Explain the statute of limitations for collection of tax after assessment.
Explain the statute of limitations on claims for refund.
Describe the requirements of Treasury Circular 230 for practice before the IRS
Describe the requirements of the AICPA Statements on Standards for Tax
Services
6. Describe the civil penalties that the IRS may impose on taxpayers and tax
preparers
7. Describe the criminal penalties that the courts may impose on taxpayers and tax
preparers for criminal violation of the tax laws
8. Prepare a sample protest letter, with supporting briefs of applicable cases, for a
conference with the IRS Appeals Division
Purpose
To provide students with an understanding of the tax assessment, appeals, and collection
process of the IRS and a knowledge of the legal and ethical responsibilities of practice
before the IRS.
Approved Text
IRS Practice and Procedure, Revised Second Edition by Michael Saltzman. Warren,
Gorham & Lamont. ISBN: 978-0-7913-6082-8
There is no need to purchase a paper copy of the textbook or cumulative supplement.
The textbook is available online free of charge through the RIA Checkpoint service at the
Troy University Library databases.
Revised Study Problems to Accompany Saltzman’s IRS Practice and Procedure by
Donald T. Williamson.
IRS Circular 230: http://www.irs.gov/pub/irs-pdf/pcir230.pdf
AICPA Statements on Standards for Tax Services:
http://www.aicpa.org/InterestAreas/Tax/Resources/StandardsEthics/StatementsonStandar
dsforTaxServices/DownloadableDocuments/SSTS,%20Effective%20January%201,%202
010.pdf
Print and place both of the above in Volume 1 of your Tax Forms and Procedures
Notebook
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Supplements (optional)
James E. Smith, Internal Revenue Code of 1986 and Treasury Regulations: Annotated
and Selected (current edition). Mason, OH: South-Western Cengage Learning. You may
use this book on exams. I highly recommend that you purchase it.
CPA Exam Review Manual: Regulation
Procedure: The method of presentation will be textbook review, lecture, class
discussion, directed readings, independent research, cases, homework, preparation of a
sample protest letter to the IRS Appeals Office, and two exams.
Other Materials: This course also requires access to a computer with Microsoft Word,
Microsoft Excel, Microsoft PowerPoint, and the ability to use the Internet and email. You
will also need two clear view ring binders (preferably a D-ring binder) and a three hole
punch.
Email
All students are required to have a Troy University email account. Each student should
check his or her email account regularly.
Blackboard
This course is Web enhanced. Class information will be posted in Blackboard for this
course. Students should check Blackboard for this course often.
Evaluation: The evaluation for this course is based on your performance on problems
solutions, a mid-term exam, a final exam, forms and procedures notebooks, and a sample
protest letter to the IRS Appeals Office with supporting briefs of applicable cases. All
work must be received by the date assigned. Late work will not be graded, or will be
graded with a penalty of at least 10 percent of the points possible on the assignment
unless the student proves by a preponderance of the evidence that there was reasonable
cause for such late filing.
Exams: There are two exams is this course. The final exam is not comprehensive.
Unless stated otherwise in class or on Blackboard, the exams are proctored exams that
you will take in class. Exams may multiple choice, questions essay questions, and case
analysis.
A make-up examination may be given only if the reason is justified per the student
handbook, The Oracle. Students may be required to present a valid Troy Student ID card
in order to take an examination.
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Tax Forms and Procedures Notebook
You are to purchase two clear-view ring binders and a three-hole punch. I recommend
the kind with the D-shaped rings. You will prepare various tax forms based on sample
cases involving tax practice and procedure. Instructions for each form or case will be
posted on Blackboard. You will punch your solutions and place them in a note book. I
may review your notebook periodically. You will turn in Volume 1 at the mid-term exam
and Volume 2 toward the end of the class. Students at campuses other than Montgomery
may mail or otherwise ship them to me at Troy University, 136 Catoma Street, Second
Floor, Montgomery, Alabama 36103. Please keep a copy for your records and to serve as
a backup in the event the main copy is lost.
The tax forms you are to download and print from http://www.irs.gov to use for your
sample cases are as follows:
Form 433-A Collection Information Statement for Wage Earners and Self-Employed
Individuals
Form 433-B Collection Information Statement for Businesses
Form 656 Offer in Compromise
Form 656-A Income Certification for Offer in Compromise Application Fee (For
Individual Taxpayer Only)
Form 656-B Offer in Compromise Booklet
Form 656-L Offer in Compromise (Doubt as to Liability)
Form 843 Claim for Refund and Request for Abatement
Form 911 Request for Taxpayer Advocate Service Assistance (And Application for
Taxpayer Assistance Order)
Form 982 Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section
1082 Basis Adjustment)
Form 1040X Amended U.S. Individual Income Tax Return
Form 1045 Application for Tentative Refund
Form 1127 Application for Extension of Time for Payment of Tax
Form 1139 Corporation Application for Tentative Refund
Form 1310 Statement of Person Claiming Refund Due a Deceased Taxpayer
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Form 2210 Underpayment of Estimated Tax by Individuals, Estates and Trusts
Form 2210-F Underpayment of Estimated Tax By Farmers and Fishermen
Form 2220 Underpayment of Estimated Tax By Corporations
Form 2553 Election by a Small Business Corporation
Form 2848 Power of Attorney and Declaration of Representative
Form 3115 Application for Change in Accounting Method
Form 4361 Application for Exemption From Self-Employment Tax for Use By
Ministers, Members of Religious Orders and Christian Science Practitioners
Form 4466 Corporation Application for Quick Refund of Overpayment of Estimated Tax
Form 4506 Request for Copy of Tax Return
Form 4506-T Request for Transcript of Tax Return
Form 4852 Substitute for Form W-2, Wage and Tax Statement, or Form 1099R,
Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRA's
Insurance Contracts, Etc.
Form 4868 Application for Automatic Extension of Time to File U.S. Individual Income
Tax Return
Form 5213 Election to Postpone Determination As To Whether the Presumption Applies
That an Activity is Engaged in for Profit
Form 7004 Application for Automatic Extension of Time To File Certain Business
Income Tax, Information, and Other Returns
Form 8023 Elections Under Section 338 for Corporations Making Qualified Stock
Purchases
Form 8275 Disclosure Statement
Form 8275-R Regulation Disclosure Statement
Form 8300 Report of Cash Payments Over $10,000 Received In a Trade or Business
Form 8332 Release/Revocation of Release of Claim to Exemption for Child by Custodial
Parent
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Form 8379 Injured Spouse Allocation
Form 8809 Application for Extension of Time to File Information Returns
Form 8821 Tax Information Authorization
Form 8822 Change of Address
Form 8832 Entity Classification Election
Form 8857 Request for Innocent Spouse Relief
Form 8869 Qualified Subchapter S Subsidiary Election
Form W-4 Employee's Withholding Allowance Certificate
Preparation of a Sample Freedom of Information Act Request
Preparation of a Sample Private Letter Ruling Request
Preparation of a Protective Refund Claim
Preparation of Letter Requesting Partial Discharge of Tax Lien
Lump Sum Election for Social Security Benefits
Additional forms may be required. If so, I will announce them in class or post a notice on
Blackboard.
Course Grades and Grading Philosophy: Grading in graduate courses is different from
grading in undergraduate courses. While objective exams such as multiple choice
questions and problems are the norm in undergraduate accounting classes, graduate
classes focus more on research, case analyses, and essay exams. Grading work in
graduate courses is therefore far more subjective. If there is any doubt about the
student’s grade, the professor may give greater weight to the student’s performance on
exams.
The grading scale is only a guide. The professor will use his judgment to determine the
student’s grade based on the student’s overall performance in the class. The professor
will consider such things such as attendance, decorum in the classroom, and class
participation in addition to grades on specific exams and assignments.
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A grade of “A” reflects excellence in understanding the subject matter as shown on
exams and outstanding work in applying such understanding as shown by the student’s
performance in analyzing cases, including the group case projects. The student must be
an active participant in the group case projects. Grades of “A” are the exception rather
than the norm. Grades of “A” usually reflect consistent outstanding performance.
Grades of “A” are usually reflected in an average of 90 to 100 percent.
A grade of “B” reflects usual graduate quality work. This is the grade that most students
should expect if they put forth the significant effort required to complete a graduate
course successfully. To earn a grade of “B,” the student must have mastered the subject
rather than just being familiar with it. The student must show a level of understanding
the subject matter and applying such understanding as shown by the student’s
performance in analyzing cases, including the group cases. The student must be an active
participant in the group case projects. The student’s work must indicates that the student
has a much deeper understanding of the subject matter than does a student who has a
bachelor’s degree but who has not completed any graduate courses. Some of the
student’s work may be significantly better than the quality of the student’s work on other
assignments. Grades of “B” are usually reflected in an average of 80 to 89 percent.
A grade of “C” indicates that the student has put forth some effort in the class and has
attained some understanding of the subject matter beyond that expected of a student who
has a bachelor’s degree but who has not completed any graduate courses. However, a
grade of “C” reflects that the student’s level of understanding and/or application of the
subject matter are below the level normally expected of graduate students. Usually, a
grade of “C” reflects lack of sufficient effort in the course. The level of effort required to
complete a graduate course successfully is significantly more than the level of effort
required to complete an undergraduate accounting course. Grades of “C” are usually
reflected in an average of 70 to 79 percent.
A grade of “D” is reflects lack of sufficient effort and/or a significant lack of
understanding of the subject matter. Grades of “D” are usually reflected in an average of
60 to 69 percent.
A grade of “F” reflects significant failure to understand the subject matter and/or a
significant failure to put forth the necessary effort to succeed in graduate school. Grade
of “F” are usually reflected in an average of 0 to 59 percent. A course grade of “F” will
also be assigned for plagiarism or cheating on the book report, exam, and/or cases.
A grade of “FA” indicates failure due to excessive absences. A grade of “FA” counts the
same as a grade of “F,” but the student may be required to pay back any financial aid
received.
Absence Policy: Students receiving financial assistance are required to attend classes
according to the regulations for financial assistance benefits in addition to those
regulations required for the course. Attendance is essential if you are to understand and
assimilate the material in this class. Excess absences can result in a course grade of FA.
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General Supports: Troy University on-line library services are available to all currently
registered students and can be accessed directly by browsing to the Troy main page at
http://www.troy.edu and clicking on the “Library” link in the left hand menu.
Other pertinent information: N/A
Nature of Graduate Work: Graduate work, by its nature, is different from
undergraduate graduate study in a number of ways. This is apparent in such requirements
as reviewing, conducting, and reporting on current and classical research; as well as
attending classes or attending work team meetings on time and being fully prepared to
participate in topic analysis and discussion. Through the volume of work and intellectual
stimulation, graduate work is intended to challenge you to meet or exceed your perceived
limits. The role of the graduate professor is not to “feed” the course material to the
student. Self-directed inquiry and subjecting your opinions to the test of discussion with
peers or professors are characteristics of graduate work. Your willingness to participate
constructively in team related activities and discussions, as well as class discussion, with
thoughtful, relevant observations contribute to your learning. The key distinction of
graduate work is the development and use of critical thinking skills.
Additional Services: Troy University supports Section 504 of the Rehabilitation Act of
1973 and the Americans with Disabilities Act of 1990, which insure that postsecondary
students with disabilities have equal access to all academic programs, physical access to
all buildings, facilities and events, and are not discriminated against on the basis of
disability. Eligible students, with appropriate documentation, will be provided equal
opportunity to demonstrate their academic skills and potential through the provision of
academic adaptations and reasonable accommodations. Further information, including
appropriate contact information, can be found at the link for Troy University’s Office of
Human Resources at http://www.troy.edu/humanresources/index.html. The Americans
with Disabilities Act representative on the Montgomery campus is Ms. Jane Rudick at
334-241-9587.
Late or Incomplete Work Policy: Generally speaking, late or incomplete assignments
will not be accepted. If accepted, late work will be subject to a minimum penalty of 10
percent of the points possible on the assignment unless the student proves by the
preponderance of the evidence that there was reasonable cause for such late submission.
Grades of “I” for incomplete grades will only be given in extreme circumstances and only
with a detailed plan for accomplishment of the missing work. Students should be
prepared to provide appropriate documentation if requested by the instructor.
Academic Misconduct: The student Standards of Conduct can be found in the 20112012 student handbook, the Oracle, and describes Troy University policy concerning
more than just plagiarism. Other issues include falsification of information, cheating,
criminal activity, etc. Instances of misconduct will be handled as noted in the Oracle.
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Plagiarism: Any issue involving student activity that is in violation of the student
Standards of Conduct concerning plagiarism, cheating, or dishonesty toward instructors
will be handled according to the student handbook, the Oracle. Assignments turned in
electronically will be checked for plagiarism issues with turn-it-in.com software.
Students are strongly encouraged to check their own assignments prior to submitting
them to the instructor for grading.
Homework: You will not turn in any homework except for what is shown below under
Grading and Weights.
Grading and Weights
Tax Forms and Procedures Notebook, Volume 1
Tax Forms and Procedures Notebook, Volume 2
Study Problems Lessons 10 @ 30
Mid-Term Exam
Final Exam
Sample Protest Letter to the IRS Appeals Office with Briefs of
Supporting Cases and Sample Form 2848
Total Points Possible
100
100
300
200
200
100
1,000
Troy University School of Accountancy Mission Statement
The mission of the School of Accountancy is to advance the accounting profession by
providing quality accounting education to both undergraduate and graduate students,
publishing quality research and providing service to the professional community. We
prepare students for successful careers with increasing professional and managerial
responsibility in public accounting as well as government and industry and prepare
undergraduate students for admission to graduate programs in accounting and business.
Sorrell College of Business Mission Statement
Through operations that span the State of Alabama, the United States, and the world,
Sorrell College of Business equips our students with the knowledge, skills, abilities and
competencies to become organizational and community leaders who make a difference in
the global village and global economy. Through this endeavor, we serve students,
employers, faculty, and Troy University at large as well as the local and global
communities.
Sorrell College of Business Vision Statement
Sorrell College of Business will be the first choice for higher business education students
in their quest to succeed in a dynamic and global economy. Sorrell College of Business
will create the model for 21st century business education and community service.
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Troy University Mission Statement
Troy University is a public institution comprised of a network of campuses throughout
Alabama and worldwide. International in scope, Troy University provides a variety of
educational programs at the undergraduate and graduate levels for a diverse student body
in traditional, nontraditional and emerging electronic formats. Academic programs are
supported by a variety of student services which promote the welfare of the individual
student. Troy University's dedicated faculty and staff promote discovery and exploration
of knowledge and its application to life-long success through effective teaching, service,
creative partnerships, scholarship and research.
Purpose of the Master of Taxation Program
The purpose of the Master of Taxation program is to prepare students for careers as tax
professionals or for admission into doctoral programs in accounting with a tax emphasis.
It will equip graduate students with an in-depth knowledge of the tax law, the skills at
conducting tax research, and the abilities to communicate the results of tax research and
represent taxpayers before taxing authorities.
Assignments: Homework assignments and class schedule are listed below. You must
turn in the required work on or before their due dates. If you are not able to attend class,
you may submit them by email.
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Course Outline and Assignments:
Monday, January 9 (Class Meeting 1)
Chapter 1:
The IRS as an Administrative Agency (Omit ¶¶ 1.01 and 1.03)
IRS Circular 230: http://www.irs.gov/pub/irs-pdf/pcir230.pdf
Current Organization of the IRS http://www.irs.gov/irs/article/0,,id=149197,00.html
Code Sections: 7428(a), 7454(a), 7467(a), 7478(a), 7801(a), 7802, 7803(a), 7804(a)
Chapter 1:
Study Problems, Lesson 1 (Class Discussion Only)
Monday, January 16
No Class – Martin Luther King, Jr., Holiday
Tuesday, January 17
Last Day to Add a Resident Class
Last Day to Drop/Withdraw Without Owing Full Tuition
Monday, January 23 (Class Meeting 2)
Chapter 2:
Taxpayer Access to Information (Omit ¶¶ 2.01[2], 2.03[5][a] through
2.03[5][d], 2.03[6], 2.04[3] through 2.04[5], 2.06 through 2.08)
Code Sections: 6103, 6110, 7213
Chapter 2:
Study Problems, Lesson 2 (Class Discussion Only)
Chapter 3:
Statements of IRS Position and Practice (Omit ¶¶ 3.02[1], 3.03[3][c],
3.03[3][d], 3.03[4], 3.03[5], 3.04[2][b] through 3.04[2][d], 3.04[3][b]
through 3.04[3][g])
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Monday, January 30 (Class Meeting 3)
Chapter 3:
Study Problems, Lesson 3 (Class Discussion Only)
Chapter 4:
Returns (Omit ¶ 4.07)
Code Sections: 6001, 6011(a), 6012(a)(1) through 6012(a)(5), 6013(a), 6013(b)(1)
through 6013(b)(4), 6018(a), 6019(a), 6031(a), 6031(b), 6037, 6061 through 6065,
6072(a), 6072(b), 6072(c), 6072(e), 6075(a), 6075(b)(1), 6075(b)(2), 6081, 6109,
6151(a), 6161(a)(1), 6694
Monday, February 6 (Class Meeting 4)
Chapter 4:
Study Problems, Lesson 4 Due, 30 Points
Chapter 5:
Statutes of Limitations (Omit ¶ 5.04)
Code Sections: 6013(b)(4), 6501(a), 6501(b)(1), 6501(b)(3), 6501(c)(1) through
6501(c)(4), 6501(d), 6501(e)(1), 6501(g), 6501(h), 6501(k), 6502(a)(1), 6503(a), 6531(1)
through 6531(3)
Chapter 6:
Interest
Code Sections: 6601, 6611, 6621
Monday, February 13 (Class Meeting 5)
Chapter 5:
Study Problems, Lesson 5 Due, 30 Points
Chapter 6:
Study Problems, Lesson 6 (Class Discussion Only)
Chapter 7A:
Criminal Penalties (Omit ¶¶ 7A.05, 7A.06, 7A.09 through 7A.11)
Code Sections: 6531(2), 6531(3), 7201 through 7203, 7206(1), 7206(2), 7207
Chapter 7A:
Study Problems, Lesson 7A (Class Discussion Only)
Chapter 12:
The Criminal Investigation Function (Omit ¶¶ 12.02, 12.07[3][a] through
12.07[3][c], 12.13)
Code Sections: 7602 through 7605, 7608 through 7610, 7525, 7622, 7321
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Monday, February 20 (Class Meeting 6)
Chapter 12:
Study Problems, Lesson 12 Due, 30 Points
Chapter 7B: Civil Penalties (Omit ¶¶ 7B.09, 7B.09A, 7B.12 through 7B.22)
Code Sections: 6013(e), 6651, 6653, 6654, 6659 through 6663, 6694(a), 6694(b), 6695,
7491, 7701(a)(36)
Monday, February 27 (Class Meeting 7)
Chapter 7B:
Study Problems, Lesson 7B Due, 30 Points
Tax Forms and Procedures Notebook, Volume 1 Due, 100 Points
Mid-Term Exam, 200 Points
Monday, March 5 (Class Meeting 8)
Chapter 8:
The Examination Function (Omit ¶¶ 8.04[5], 8.09, 8.10, 8.17 through
8.22)
Code Section: 7601
Chapter 13:
The Service's Investigatory Powers (Omit ¶¶ 13.09[5], 13.10[2], 13.10[3],
13.16, 13.17)
Code Sections: 7520, 7521, 7525, 7601 through 7610
Chapter 13:
Study Problems, Lesson 13 (Class Discussion Only)
Thursday, March 8
Last Day to Drop a Course
Last Day to Withdraw From School Without Academic Penalty
Monday, March 12
No Class – Spring Break
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Monday, March 19 (Class Meeting 9)
Chapter 8:
Study Problems, Lesson 8 (Class Discussion Only)
Chapter 9:
The Appeals Function (Omit ¶ 9.10)
Code Sections: 7121 through 7123, 7429, 7430, 6320, 7463
Monday, March 26 (Class Meeting 10)
Chapter 9:
Study Problems, Lesson 9, 30 Points
Chapter 10:
Assessment Procedures (Omit ¶¶ 10.05[1][c], 10.05[2][a], 10.05[2][b],
10.05[3], 10.05[5])
Code Sections: 6159, 6201, 6203, 6212, 6213, 6323, 6330, 6331, 6334, 6501(d), 6851,
6861, 6871, 7429
Monday, April 2 (Class Meeting 11)
Chapter 10:
Study Problems, Lesson 10 Due, 30 Points
Chapter 11:
Overpayment, Refund, Credit, and Abatement (¶¶ 11.02[1], 11.08[2],
11.08[3], 11.09 through 11.13)
Code Sections: 6402, 6404, 6405, 6411, 6511, 6513, 6601, 6611
Protest Letter Due, 100 Points
Monday, April 9 (Class Meeting 12)
Chapter 11:
Study Problems, Lesson 11 Due, 30 Points
Chapter 14:
The Tax Collection Function: Tax Liens and Levies (Omit ¶¶ 14.18
through 14.22)
Code Sections: 6303, 6321, 6323, 6331 through 6339, 6343, 6502, 6503, 7402, 7403,
7521, 7609
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Monday, April 16 (Class Meeting 13)
Chapter 14:
Study Problems, Lesson 14 Due, 30 Points
Chapter 15:
Avoiding and Minimizing the Effect of Tax Liens and Levies (Omit ¶¶
15.03[4][e], 15.03[4][f], 15.04[5]. 15.05[1] through 15.05[5], 15.07,
15.08)
Code Sections: 6159, 6325, 6326, 6343, 6501, 6503, 7122, 7426, 7432, 7433, 7809, 7811
Monday, April 23 (Class Meeting 14)
Chapter 15:
Study Problems, Lesson 15 Due, 30 Points
Chapter 16:
Priority of Tax Claims (Omit ¶¶ 16.07 through 16.09)
Code Sections: 6323, 6871, 6872, 6873
Monday, April 30 (Class Meeting 15)
Chapter 16:
Study Problems, Lesson 16 Due, 30 Points
Chapter 17:
Collection from Nontaxpayers (Omit ¶ 17.11)
Code Sections: 6324(a)(2), 6672, 6901, 6902, 6904, 7215, 7421
Tax Forms and Procedures Notebook, Volume 2 Due, 100 Points
Chapter 17:
Study Problems, Lesson (Class Discussion Only)
Monday, May 7 (Class Meeting 16)
Final Exam, 200 Points
Tuesday, May 8
Last Day of Resident Classes
Monday, May 21
Commencement Ceremonies – Montgomery Campus