ACC 206 - Topics in Tax Accounting 3 Credits, 3 Contact Hours
3 lecture periods 0 lab periods
Introduction to advanced tax issues facing both individual taxpayers and various taxable entities, including: corporations, partnerships, estates, and trusts. Also includes an emphasis the U.S. tax code and regulations that relate to these parties, examining the complex tax transactions that may affect them. Also included practice and procedure, taxpayer representation, and the filing process.
Information: This course assists in preparation for the IRS Enrolled Agent exam.
Course Learning Outcomes
- Distinguish between varies types of income (earned, unearned, passive, and non-passive) and contrast tax deductions versus tax credits on an individual tax return.
- Identify key issues and planning opportunities in advising the business taxpayer, while recognizing the differences among the choice of business entities; discern the variety of specialized tax returns.
- Identify professional tax preparer responsibilities as specified in Circular 230 and explain powers of attorney, tax information authorizations (TIAs), and central authorized files (CAFs)
I. Accounting periods and methods allowed for both individuals and businesses under current tax laws
A. Individual reporting periods
B. Cash, accrual, or hybrid reporting basis
C. Businesses taxed as corporations reporting periods
D. Accrual basis of reporting
E. Choice of business entity.
II. Individual taxation
A. Filing requirements
B. Forms 1040EZ, 1040A, 1040, and 1040X
C. Schedules A, D, C, and E
D. Forms 2106, 4562, 4797, and 8949
E. Taxable income computation
F. Tax credits, wage withholding, and estimated payments.
III. Corporate taxation
A. Filing requirements
B. Taxable income computation
C. Schedule M adjustments
D. Net operating losses
E. Alternative minimum tax (AMT) and affiliated groups
F. Corporate forms: 1120, 1120W, 1120X, 4255, 4797, and/or other current forms.
IV. Corporate taxation
A. Organization and capital contributions
B. Capital structure
C. Investor issues
D. Earnings and profits
E. Dividend distributions
F. Accumulated earnings and personal holding company taxes
G. Tax credits.
V. S corporation taxation
A. Making the S corporation election
B. Income allocations
F. Special taxes
G. S-corporation forms: Schedule K-1, 1120S, and/or other current forms.
VI. Partnership taxation
A. Allocations of income
B. Capital accounts
C. Basis issues
D. Loss limitations
E. Partnership distributions
F. Sale of interest
G. Family partnerships and LLCs
H. Partnership forms: Schedule K-1, 1065, 1065D, and 1065K.
VII. Estate and trust taxation
A. Overview of Subchapter J
C. Procedural matters
D. Five steps to taxable income
E. Fiduciary accounting income.
VIII. Estate and trust taxation
A. Computing taxable income
B. Dividend and Income Fund (DNI) and distribution deductions
C. Tax credits
D. Taxation of beneficiaries
E. Termination year issues.
IX. Estate and trust taxation
A. Grantor trusts
B. Tax planning
C. Property concepts
D. Estate and trust gift transfer taxes.
X. Professional responsibilities
A. Who may practice
B. Rules of practice—Circular 230
C. Conduct of practice
D. Preparing a return
E. Tax preparer penalties.
XI. IRS administration
B. Scope of authority
C. Execution of a Power of Attorney (POA)
D. Centralized authorization file (CAF)
Full Academic Year 2021-2022
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