ACCT 474: Tax Issues For Business
August 27, 2012 to October 19, 2012
Professor:
Office:
Joseph L. Keller
Acc 212
Office Phone: (213) 740-4846
E-mail:
jkeller@marshallusc.edu
Lecture Class
Tue/Thur.
Tue/Thur.
10:00 am – 11:50 am Room: Acc 205
12:00 pm – 1:50 pm Room: Acc 201
Office Hours
Monday
Tues / Thurs
4:00 pm – 6:00 pm
8:00 am – 9:30 am and by appointment
Course Description
This course is the second part of the two-course tax study for accounting majors. While
the first tax course emphasizes basic tax principles, property transactions and related tax
issues, the focus of this course is tax issues through a business entity’s life: formation,
financing and operations and change of form.
While the focus will be on U. S. firms and U. S. taxation, a portion of our study will be
devoted to taxation of cross-border transactions and non-tax implications for a tax
decision.
The materials used in this course include the tax law (the Internal Revenue Code),
authoritative government regulations, and government background studies on taxation.
We will learn to do basic research of tax issues using the sources. In addition, we will
discuss several case studies which put the tax rules into specific business contexts. Finally,
there will be some exposure to current research on taxation.
Learning Objectives
The goal of this course is to teach students to be knowledgeable in the application of tax
principles governing business transactions.
By the time students finish this course, they should be able to

assess tax issues related to the formation, operations, distribution of C corporations
and flow-through entities such as S corporations and partnerships by solving problems
and analyzing tax transactions

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comply with tax reporting process and report tax information to Internal Revenue
Service, e.g., Forms 1120, 1065, by analyzing relevant tax information for business
entities and preparing tax returns, working papers, and documents

utilize tax research skills by identifying and analyzing tax issues using Internal
Revenue Code, tax regulations, and court cases

analyze business tax transactions by using on-line tax research databases (CCH and
RIA) to solve specific tax issues associate with business entities

examine the relationship between taxes and investment and financing decisions
in tax planning
by evaluating alternative tax options

identify and measure effects of a tax transaction on all parties by analyzing tax and
non-tax costs and the trade-offs for each party in alternative tax structures
Required Materials
Pratt and Kulsrud, Corporate, Partnership, Estate and Gift Taxation (PK), 2013 edition.
Dickinson: Federal Income Tax Code and Regulations, Selected Sections 2012-2013 Edition (optional).
Internal Revenue Service Website: http://www.irs.gov
Prerequisites: ACCT 374
Course Notes: Power point handouts will be posted in advance for each class on Blackboard
Grading Policy
There will be two mid-term exams and a final exam. This course follows the Leventhal
School of Accounting and Marshall School of Business grading policies.
Make-up exams will be given only when a student has received advanced approval from
the instructor. The following points will be assigned for the determination of final grades:
Mid-term exam 1
Mid-term exam 2
Final exam.
Research problems
Class participation
Total
100
100
150
100
50
500
Notes on grading policy
1. All assignments, exams, and class participation will be evaluated on effectiveness of
your communication. This includes grammar, spelling, organization, format and the
other essentials of strong and effective communication. All problems are to be the
student’s individual work and any collaboration or sharing of answers will be
considered a violation of the honor code.
2.
All assignments are due on the dates indicated on the course syllabus. Late assignment
will receive a grade of ZERO.
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3.
Class attendance is very important in developing a coherent view of the materials
covered in the course. It is expected that each student will be prepared for each class
and will participate through volunteering or by being called on to add to the discussion.
Program Learning
Objective
1. Technical Knowledge
2. Research, Analysis and
Critical Thinking
3. Ethical Decision
Making
4. Communication
5. Leadership,
Collaboration and
Professionalism
Description
Students will demonstrate technical proficiency in the
accounting discipline, including the use of technical
accounting knowledge to help solve problems and
make decisions.
Students will demonstrate the ability to critically
analyze, synthesize, and evaluate information for
decision making in the local, regional and global
business environment.
Students will demonstrate an understanding of ethics,
ethical behavior and ethical decision making.
Students will demonstrate the ability to communicate
ideas both orally and in writing in a clear, organized
and persuasive manner.
Students will demonstrate leadership skills and the
ability to work cooperatively and productively to
accomplish established goals.
USC Emergency # (213) 740-4321
USC Emergency Information Line (213) 740-9233
USC Information # (213) 740-2311 and KUSC Radio 91.5 FM
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Level of
Coverage
Heavy
Heavy
Medium
Heavy
Light
MARSHALL GUIDELINES
Add/Drop Process
In compliance with USC and Marshall’s policies classes are open enrollment (R-clearance) through
the first week of class. All classes are closed (switched to D-clearance) at the end of the first week.
This policy minimizes the complexity of the registration process for students by standardizing
across classes. I can drop you from my class if you don’t attend the first two sessions. Please note:
If you decide to drop, or if you choose not to attend the first two sessions and are dropped, you risk
being not being able to add to another section this semester, since they might reach capacity. You
can only add a class after the first week of classes if you receive approval from the instructor.
Marshall Grading
Course Grading Policy: Marshall’s target mean GPA is 3.0 for required classes and 3.3 for
electives. The mean target for graduate classes is 3.3. Assignment/Exam Grading Policy: the
instructor determines what qualifies as an accurate grade on an assignment, exam, or other
deliverable, and the instructor’s evaluation of the performance of each individual student is the
final basis for assigning grades for the course.
Paperwork Retention Policy
Returned paperwork, unclaimed by a student, will be discarded at the end of the semester. All
graded paperwork, not returned, will be kept for one year.
Technology Policy
Laptop and Internet usage is not permitted during academic or professional sessions unless
otherwise stated by the respective professor and/or staff. Use of other personal communication
devices, such as cell phones, is considered unprofessional and is not permitted during academic or
professional sessions. ANY e-devices (cell phones, PDAs, I-Phones, Blackberries, other texting
devices, laptops, I-pods) must be completely turned off during class time. Upon request, you must
comply and put your device on the table in off mode and FACE DOWN. You might also be asked
to deposit your devices in a designated area in the classroom. Videotaping faculty lectures is not
permitted, due to copyright infringement regulations. Audiotaping may be permitted if approved by
the professor. Use of any recorded material is reserved exclusively for USC Marshall students.
Statement for Students with Disabilities
Any student requesting academic accommodations based on a disability is required to register with
Disability Services and Programs (DSP) each semester. A letter of verification for approved
accommodations can be obtained from DSP. Please be sure the letter is delivered to me (or to TA)
as early in the semester as possible. DSP is located in STU 301 and is open 8:30 a.m.–5:00 p.m.,
Monday through Friday. The phone number for DSP is (213) 740-0776.
Emergency Preparedness/Course Continuity Explanation:
In case of emergency, and travel to campus is difficult, USC executive leadership will announce an
electronic way for instructors to teach students in their residence halls or homes using a
combination of Blackboard, teleconferencing, and other technologies. Instructors should be
prepared to assign students a "Plan B" project that can be completed at a distance. For additional
information about maintaining your classes in an emergency please access:
http://cst.usc.edu/services/emergencyprep.html
Evaluation of Your Work
You may regard each of your submissions as an “exam” in which you apply what you’ve learned
according to the assignment. I will do my best to make my expectations for the various assignments
clear and to evaluate them as fairly and objectively as I can. If, however, you feel that an error has
occurred in the grading of any assignment, you may, within one week of the date the assignment is
returned to you, write me a memo in which you request that I re-evaluate the assignment. Attach
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the original assignment to the memo, and explain fully and carefully why you think the assignment
should be re-graded. Be aware that the re-evaluation process can result in three types of grade
adjustments: positive, none, or negative.
The Leventhal School of Accounting adheres strictly to the grading standards of the University and
the School of Business Administration. Additionally, the Leventhal School of Accounting has
supplemented those standards with certain others. For students' convenience, and to prevent
misunderstanding, these additional standards are summarized below.
GRADING STANDARDS
The following grades are used: A - excellent; B - good; C - fair; D - minimum passing; F - failure.
The grade of F is awarded for failing work at the end of the semester. The assignment of minuses
and pluses when earned is required.
The grade of W (Withdraw) is assigned if the student officially withdraws after the third week but
before the end of the twelfth week of the semester. No withdrawals will be permitted after the
end of the twelfth week except by student petition to the University's Committee on Academic
Policies and Procedures.
Students may elect to audit courses during the first three weeks of the semester. A course taken
for audit (V) will be assessed at the current tuition rate. A course taken for audit (V) will not
receive credit and will not appear on the USC transcript or grade report. Under no circumstances
will the University allow a change in the registration status of a course from letter grade or credit
to audit (V) or vice versa after the third week of a given semester.
Incomplete Grades Explanation
In incomplete (IN) grade may be assigned due to an “emergency” that occurs after the 6th week of
classes for half semester courses or the 12th week for full-semester courses. An “emergency” is
defined as a serious documented illness, or an unforeseen situation that is beyond the student’s
control, that prevents a student from completing the semester. Prior to the 6th or 12th week, the
student still has the option of dropping the class. Arrangements for completing an IN course
should be initiated by the student, and negotiated with the instructor. Class work to complete
the course should be completed within one calendar year from the date the IN was assigned. The
IN mark will be converted to an F grade should the course not be completed.
Academic Integrity – Leventhal School of Accounting Honor Code
Students enrolled in any class offered by the Leventhal School of Accounting are expected
to uphold and adhere to the standards of academic integrity established by the Leventhal
School of Accounting Student Honor Code. Students are responsible for obtaining, reading,
and understanding the Honor Code System handbook. Students who are found to have
violated the Code will be subject to disciplinary action as described in the handbook. For
more specific information, please refer to the Student Honor Code System handbook,
available in class or from the receptionist in ACC 101.
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G.P.A. PREREQUISITES FOR UNDERGRADUATE ACCOUNTING COURSES
The grade point average prerequisites for any undergraduate student enrolled in any accounting
course is a minimum 2.5 gpa for all completed accounting courses. In computing grade point
average prerequisites, BUAD 250ab, 280, 281, 305 and 302T are considered accounting courses.
Grades in accounting courses taken at other institutions will not be included in the computation
of the cumulative accounting grade point average.
When a student's cumulative accounting grade point average falls below 2.5, the student is placed
on probation. If a student on probation does not regain a minimum accounting cumulative GPA
of 2.5 after completing the next 12 semester hours in all courses (including accounting courses)
attempted within the University, that student will not be permitted to continue as an accounting
major in the Leventhal School of Accounting. Exceptions to this policy may be granted only in
unusual circumstances by the Academic Standards Committee of the Leventhal School of
Accounting. Decisions of the Academic Standards Committee are final.
To be removed from probationary status, a student may elect either to take another accounting
course or courses for which prerequisites are met or to repeat an accounting course or courses in
an attempt to earn a higher grade. Regardless of the course of action taken, all courses
completed will be counted in computing the cumulative accounting grade point average.
The grade of "W" in an accounting course taken while a student is on probation will not extend
probation. The probation period ends at the end of that semester during which the student
completes a cumulative total of 12 semester hours of courses in any subject(s) at the university.
Under no conditions will the student be permitted more than two successive semesters, including
the summer semester, to complete the 12 semester hours of courses.
Students must attain a minimum 2.5 cumulative accounting grade point average to graduate with
a Bachelor of Science in Accounting degree.
See the USC Catalogue for further restrictions on including grades in repeated classes in the
overall grade point average computation.
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OTHER ACADEMIC STANDARDS
1.
The ability of students to write clearly and concisely is a necessary prerequisite to success
in accounting work. Accordingly, students will be required to demonstrate writing
capability in all accounting courses. This may be accomplished primarily through the
inclusion of essay-type questions on course examinations.
Important Dates for Fall 2012
First Day of Class
Monday, August 27
Labor Day, University Holiday
Monday, September 3
Last Day to Add or Drop w/out a “W” (Session 431)
Tuesday, September 4
Last Day to Add or Drop w/out a “W” (Regular session)
Friday, September 14
Resumes for Resume Book Due
Wednesday, September 14
Meet the Firms
Thursday, September 27, 6pm-9pm
Last Day to Drop with a “W” for ACCT courses (Session 431)
Monday, October 1
Final Exams for ACCT courses (Session 431)
Monday, October 15 - Friday, October 19
Last Day to Add or Drop w/out a “W” for ACCT courses
Session 442)
Monday, October 29
Last Day to Drop with a “W” for regular session classes
Friday, November 16
Thanksgiving Break
Wed. - Friday, November 21-23
Last Day to Drop with a “W” for ACCT courses (Session 442)
Monday, November 26
Last Class Meeting
Friday, December 7
Final Examinations
Wednesday, December 12 – December 19
Winter Recess
December 20 – January 13
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CLASS SCHEDULE ACCT 474 FALL 2012
SESSION
DATE
TOPIC
01
02
03
8/28
8/30
9/4
INTRODUCTION /CORPORATE FORMATION
CORPORATE FORMATION II
CORPORATE TAX ISSUES
04
05
06
07
08
9
10
11
12
13
14
15
9/6
9/11
9/13
9/18
9/20
9/25
9/27
10/2
10/4
10/9
10/11
10/16
PARTNERSHIP FORMATION
PARTNERSHIP – TAX CONSIDERATIONS
FIRST MIDTERM
S CORPORATIONS – TAX CONSIDERATIONS
CORPORATE DISTRIBUTIONS I
PARTNERSHIP DISTRIBUTIONS I
S CORP DISTRIBUTIONS
SECOND MIDTERM
CORPORATE REDEMPTIONS
TAX ASPECTS OF INTERNATIONAL OPERATIONS
CORPORATE RESTRUCTURING – M & A
FINAL EXAM IN CLASS
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READING
ASSIGNMENT
PK
2-1 TO 2-12
2-12 TO 2-34
1-1TO 1-24, 1-33
TO 1-40
9-1 TO 9-15
9-16 TO 9-43
11-1 TO 11-35
3-1 TO 3-31
10-1 TO 10-24
11-36 TO 11-55
4-1 TO 4-31
12-1TO 12-18
7-1 TO 7-40
PROBLEM
ASSIGNMENTS
PK PROB 2-31
PK PROB 2-48*
PK PROB 9-57*
PK PROB 3-18
PK PROB 10-30
PK PROB 4-23