Heartland Community College
Social and Business Sciences Division
Course Syllabus for Students
Course Prefix and Number: ACCT 140
Course Title: Small Business Taxes
Section: 01
Prerequisite: None
Credit Hours: Contact hours 3
Lecture Hours 3 Laboratory Hours 0
Days and times the course meets: Spring 2011 6:00 – 8:50 Wednesday
Catalog Description:
This course will introduce the fundamentals of federal and state income tax preparation and
reporting requirements for individuals and various types of small businesses. In addition, payroll
tax and sales tax reporting will also be introduced.
Instructor Information:
Betty Pilchard, M.S., C.P.A.
Office location:
2012 ICN
Office phone: (309) 268-8586
E-Mail: betty.pilchard@heartland.edu
Office hours: 9:30-11:00 am Monday, 11:00 am-12:00 pm Tuesday and Thursday, 3:30 pm5:00 pm Wednesday, and other times by appointment only
Textbook and supplies:
Cruz, Ana et al. Fundamentals of Taxation 2011, Boston, MA: McGraw-Hill Irwin, 2011. Print.
Relationship to Academic Development Programs and Transfer:
ACCT 140 was designed to meet the specific needs of students in the Small Business
Management and the Accounting Foundations programs and not necessarily as a transfer course,
particularly in relation to the Illinois Articulation Initiative. This course may transfer to various
institutions in a variety of ways. Please see an academic advisor for an explanation concerning
transfer options.
It should be noted that this course generally will not transfer as Principles of Taxation that is
required for Accounting degree programs at a 4-year institution.
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COURSE OBJECTIVES (Learning Outcomes):
Course Outcomes
General
Education
Outcomes
1. Analyze how the federal and state tax
structure affects tax reporting for the
various forms of business ownership.
2. Analyze personal and business tax
reporting scenarios and apply the
appropriate federal tax laws and
regulations to determine:
a. filing status, personal exemptions,
dependency exemptions, and the
standard deduction for tax reporting;
b. income that must be included in the
computation of taxable gross income on
a 1040;
c. adjustments to income allowing in the
computation of adjusted gross income
on a 1040;
d. personal expenditures that are allowed to
be treated as itemized deductions
reported on a 1040 Schedule A;
e. business income and maximize business
expenses including depreciation reported
on a 1040 Schedule C for self-employed
business owners;
f. the computation, classification, and
reporting of gains or losses from the sale
of personal-use assets, trade or business
assets, or investment assets reported on a
1040 Schedule D;
g. the reporting of income from rental
properties, royalties, and flow-through
entities such as partnerships, S
corporations and LLCs on a 1040
Schedule E;
h. the requirements for a partnership to
report income or losses and other
required informational items on a 1065
and related Schedule K-1;
i. the requirements for a Subchapter S
Corporation to report income or losses
and other required information items on
a 1120S and related Schedule K-1.
Throughout
the semester,
students will
achieve the
following
Gen Ed
outcomes:
CO 1
PS 1
PS 2
CT 1
CT 2
Program
Outcomes
Accounting
Foundations*
Throughout
the semester
students will
achieve the
following
Accounting
Foundations
program
outcomes
AF 3
AF6
Range of
Assessment
Methods
Throughout
the semester,
the following
assessment
methods will
be used to
measure the
course,
program, and
Gen Ed
learning
outcomes:
Homework,
Exams,
Quizzes,
Cases and
other activities
as determined
by the
instructor.
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3. Apply appropriate state and federal tax
laws and regulations for payroll tax
withholding, reporting, and payment
responsibilities for employers.
4. Utilize income tax software to prepare tax
returns.
* Accounting Foundations Outcomes:
AF 3 Prepare accounting records and documentation necessary to prepare sales, payroll, and
income tax returns.
AF6 Possess proficiency in using computer software, including MS Word, MS Excel,
computerized accounting software, and computerized income tax software.
COURSE/LAB OUTLINE:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Sources of Tax Authority and Tax Law
Form 1040EZ
1040 and 1040A Basic Concepts
Gross Income
Adjustments for Gross Income
Itemized deductions (Schedule A)
Self-Employed Business Income (Schedule C)
Capital Gains and Sales of Business Property (Schedule D & Form 4797)
Rental Properties & Special Property Transactions (Schedule E)
Partnership Taxation
Sub Chapter S Corporate Taxation
Employer Payroll Taxes
Illinois Income Taxes
EDUCATIONAL BELIEFS
Beliefs about the Academic Discipline:
Every business professionals and individual taxpayer can benefit from a basic understanding of
tax laws. This understanding will help them prepare the facts needed to accurately prepare their
tax returns. Understanding the tax laws can help in recognizing potential problems before
taxable events take place. Through proper planning, taxpayers may be able to structure business
transactions to reduce their overall tax liability.
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Beliefs about Teaching and Learning:
My philosophy of teaching and learning evolves around the belief that the ultimate responsibility for
learning belongs to the student while it is the teacher’s responsibility direct the learning process by
providing a classroom environment that encourages the student to reach for their fullest individual
potential.
As the teacher, I have a responsibility to direct the learning process by providing:
 a classroom environment that is respectful and supportive of the student while encouraging
student success
 an appropriate mix of course materials and activities to help the student learn the subject matter
 assistance with understanding the basic theories and principles of accounting and tax law that
correlate to the course materials
 opportunities for students to assess their learning before they are evaluated for grades
 an introduction to the basic principles, strategies or decision making tools that will provide the
foundation needed for the students’ future studies in accounting and business as well as for their
lives/jobs.
As the student, you have a responsibility to:
 be prepared for class
 be willing to actively participate in all course related activities
 be respectful of the instructor and the other students in the classroom
 assess your own learning so you can communicate effectively when you encounter difficulties
with course materials
 apply what you learn in class to future studies in accounting and business as well in your life/job.
I believe there is definitely a reciprocal relationship between my responsibilities as the teacher and your
responsibilities as a student. Over the years I have found that if I live up to my responsibilities as the
instructor, you will find your responsibilities much easier, and vice versa. I have also found that if I live
up to my responsibilities, you are much more likely to take you responsibilities more seriously and that is
when you will begin to see your true individual potential.
Top 10 things to do to be successful in this class:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Ask questions!
Attend class and participate in class discussions!
Read and review all assigned material prior to class.
Attempt all assigned homework problems/exercises prior to class. After the assignments have
been discussed in class, review the problems/exercises and complete all aspects of the assignment
for future reference.
Participate in class activities.
Have a class contact/study partner that you work with the keep up with class activities.
Review chapter materials on the web for this class.
Don’t let yourself fall behind – it can be devastating in a class like this.
Review EARLY and OFTEN for quizzes and exams.
Ask questions!!!
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COURSE POLICIES
Grading System:
Total points accumulated during the semester will determine course grades. Points will be assigned as
follows:
Text Tax Return Problems (10)
100 points
Comprehensive Tax Return Projects (2) 50 points
Payroll Tax Return Project
25 points
Midterm Exam
100 points
Final Exam
100 points
Total points possible
375 points
Grading Scale:
The grading scale used to determine the course grade will be:
A = 337 to 375 points
D = 225 to 261 points
B = 300 to 337 points
F = Less than 225 points
C = 262 to 299 points
Policies on Assignments/Tests/Make-ups:
Students will be required to complete several tax returns throughout the course utilizing the tax software
that is provided with the text and/or blank tax forms. Approximately 15 tax return problems will be
assigned, however, only the scores of the top 10 will be counted towards the final grade for the course.
There will be two comprehensive income tax return projects and a payroll tax return project assigned
during the course. In addition to preparing the tax return, the projects will require you to address
questions from the taxpayer related to their tax returns.
Students will be allowed to use calculators during examinations. Students are responsible for completing
quizzes/exams within the allotted time period in case of calculator failure. No calculators on cell
phones, palm pilots, or other multifunctional electronic devices may be used on quizzes/exams
The exams may consist of preparation of tax returns, as well as multiple choice, true false, and/or essay
questions which are included to test your conceptual understanding of the material. The final exam for
the course will be taken during the final exam time assigned to this class.
***MAKEUP EXAMS WILL BE GIVEN ONLY IF ARRANGED IN ADVANCE UNLESS
SEVERE, EXTENUATING CIRCUMSTANCES CAN BE DOCUMENTED. ***
Anyone who removes an exam, in part or in total, from the classroom at anytime will be given a grade of
"F" for the course. Reproduction of the contents of the exam by any process will result in your receiving
a grade of "F" for the course.
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Attendance Policy:
All students are expected to attend class on a regular basis. Consistent class attendance and
participation is critical in the learning process since accounting knowledge tends to be
cumulative in nature. Class attendance and participation in class activities may be evaluated by
the instructor and may be considered as part of determining your final course grade.
Notice of Cancelled Class Sessions
Cancelled class sessions, for all HCC classes, will be listed under Cancelled Class Meetings
announcements at www.myheartland.edu. The list will show you the classes have been
cancelled for that day and the upcoming week. Be sure to check the last column, which might
contain a message from the instructor.
Academic Integrity:
Academic integrity is a fundamental principle of academic life at Heartland Community College
and is essential to the credibility of the College’s educational programs. Moreover, because
grading may be competitive, students who misrepresent their academic work violate the right of
their fellow students. The College, therefore, views any act of academic dishonest as a serious
offense requiring disciplinary measures, including course failure, suspension, and even expulsion
from the College. In addition, an act of academic dishonesty may have unforeseen effects far
beyond any officially imposed penalties.
Violations of academic integrity include, but are not limited to cheating, aiding or suborning
cheating or other acts of academic dishonesty, plagiarism, misrepresentation of data, falsification
of academic records or documents and unauthorized access to computerized academic or
administrative records or systems. Definitions of these violations may be found in the college
catalog.
SUPPORT CENTER SERVICES
Library
The Library, located in the Student Commons Buildings at the Raab Road campus, provides Heartland
students with a full range of resources including books, online journal databases, videos, newspapers,
periodicals, reserves, and interlibrary loan. Librarians are available to assist in locating information. For
more information, please call the Library (309) 268-8200 or (309) 268-8292
Tutoring Services
Heartland Community College offers tutoring in various forms at no cost to Heartland students at the
Tutoring Center in Normal and at the Pontiac and Lincoln Centers. Tutors are available at convenient
times throughout the week. Study groups are also available by request. For more information about
services available at each location, please call the Tutoring and Testing Center in Normal (309) at 2688231, the Pontiac Center at (815) 842-6777, or the Lincoln Center at (217) 735-1731.
Testing Services
The Testing Center provides a secure testing environment for students who are enrolled in online, hybrid,
and other distance learning courses; have a documented disability; or need to take a make-up exam.
Testing accommodations for students having documented disabilities must be arranged by the student
through the Office of Disability Services, and Testing Services will only administer make-up exams at the
request of the instructor. Contact Testing Services at (309) 268-8231 for more information.
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Open Computing Lab
The Open Computing Lab provides free computing for HCC students at convenient times throughout the
week. The computer lab is staffed by trained Lab Assistants and offers the use of approximately 70
computers, a scanner, a laser printer, and an electric typewriter.
Hours for Support Services
Hours that the various support services are available are posted online at www.heartland.edu .
Please be advised that hours around holidays and over school breaks may be limited.
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ACCOUNTING 140 - COURSE SCHEDULE (Spring 2011 W)
Week
01/12
01/19
Topic for the week
Course Introduction


Syllabus and course requirements
Resources for the semester
01/26
Types of business ownership and their impact on taxes
Tax registration requirements for starting a new business
Overview of accounting (cash vs. accrual)
02/02
Accounting for assets and overview of Form 1040
02/09
Chapter 6 – Self Employed Business Income
02/16
Chapter 14 – Partnership Taxation
02/23
Chapter 15 – Corporate Taxation
03/02
Midterm Exam
03/09
Spring Break
03/16
Chapter 1 & 2 – Tax Formula, Filing Status, Dependency Exemption and
Standard Deduction





03/23
04/06
Schedule C
Form 1065 and K-1
Form 1120S
Form 1040EZ and 1040A
Chapter 3 – Gross Income: Inclusions and Exclusions

03/30
Form 4562
Form 1040
Chapter 4 – Adjustment for Gross Income

Form 1040
Chapter 5 – Itemized Deductions

Form 1040 Schedule A
04/13
Capital Gains and Property Transactions
04/20
Payroll Taxes
04/27
Sales Taxes
05/04
Tax Credits and Tax-deferred Plans
05/11
Final Exam


1040 Schedule D and E
Form 940, Form 941, and Illinois payroll returns
Changes to the schedule will be announced in class.