ACCOUNTING 421: Taxation

Winter 2020

Professor: Cass Hausserman, PhD, CPA

Email:cass.hausserman@pdx.edu
Office: 430G
Office Hours: Tuesdays (in my office) and Fridays (on Google Hangouts) from 10:00 AM to 11:00 AM or by
appointment. Please use the office hours link provided on the D2L course homepage to join office hours.

Course Learning Objectives:

Technical Knowledge:
1. Understand basic procedural aspects related to individual income tax filing, such as tax return due dates, IRS
structure and procedure, and regulations regarding withholding and estimated payments.
2. Employ general tax terminology, including various tax rate structures (regressive, proportional, progressive),
calculate tax liability, and distinguish between different tax rate calculations (marginal, effective, average).
3. Differentiate between the various sources of tax law to conduct basic tax research using web-based software.
4. Demonstrate how common entities are taxed and how income from partnerships and corporations affect
individual income taxation.
5. Utilize the individual income tax formula to calculate taxable income. This includes knowing where an item
appears in the formula and differentiating between included and excluded income, and deductible versus non-
deductible expenses.
6. Apply theoretical knowledge and specific tax rules to translate information to the appropriate tax forms and
prepare a basic individual income tax return.
7. Justify when to capitalize or expense an item for tax purposes, and analyze the differences in the outcomes of
the treatments.
8. Identify transactions that result in capital gains and losses, compute a net capital gain or loss, and illustrate the
treatment in the individual income tax formula.

Critical Thinking:
1. Research and identify supporting authoritative sources of tax law related to course concepts using web-based
software.
2. Apply course knowledge to a set of facts to prepare a basic individual income tax return.
3. Evaluate ambiguous information to justify a conclusion and recommend a position that is legal, ethical, and
from a client advocate perspective.

Written Communication:
1. Communicate technical tax information in a clearly written research memo.
2. Communicate technical tax and client service information in a professional letter to a client.
3. Utilize and appropriately cite relevant authoritative sources to justify a tax position.

These learning objectives, along with the learning objectives in your other core accounting classes, will be tested in a
comprehensive multiple choice exam taken at the beginning of Actg 495. This Cumulative Knowledge Test is designed to
assess the extent to which you have retained the base accounting knowledge included in our curriculum.

Required Text:
Murphy Higgins Concepts in Federal Taxation, 27th Edition (2020/tax year 2019), package for Portland State University.
It is essential that you have the most recent edition, given the recent significant law changes. There are several purchasing
options. An ebook is sufficient for this class, and a paper copy is not required. We will not be using CengageNow in this
class. The publisher has several options available at the following site:
www.cengagebrain.com/course/3857072. The most economical option will be to click on the “rent of buy from $249” and
then choose the rental option for ~$70. See images below. Loose leaf copies of the text will also be available in the
bookstore, at a slightly higher price than what is offered by the publisher.
Office Hours:
See above for office hours times and locations. Please attend office hours if you have questions about the class, or would
like some extra help working through problems. This is a great opportunity for me to get to know you a little better and to
stay on top of the course material.

Teaching Plans:
This class will consist of a variety of learning mechanisms including video lectures, video examples, group and individual
assignments and projects, individual text book reading, supplemental problems, worksheets, quizzes, exams, etc. Please
see the “Class Schedule” below for a schedule of topics, associated reading, project, and exam dates. Although the class is
online, I expect this class to be very interactive, and regular participation, as well as staying current with the assigned
work is extremely important, as we cover a significant amount of material in a short time period. There will be several
required activities each week. You will learn the most and will find it most interesting when you are adequately prepared
and participate!

Reading the assigned text and examples in advance is required. Although the supplemental problems will not be graded, I
highly recommend working through the associated problems. I will work through some of the supplemental problems
related to each chapter, but it is recommended that students attempt the problems prior to watching the video. If students
have questions about any of the supplemental problems after watching the video, this is a great opportunity to reach out
for help in one of three ways: 1) Talk to your fellow classmates in a discussion forum or through google hangouts, 2) ask
me during office hours, or 3) send me an email.

Tax Forms:
Students should access the 2019 tax forms posted on D2L (or available at the IRS website). Some of the forms may only
be available in draft form. Much of what is covered in the text book does not discuss its relation to the actual tax return.
Therefore, it is important to connect the theory and practice, which we will do by referencing the relevant tax forms in the
examples and on some of the assignments.

Participation: I expect this class to be very interactive and participatory. It is essential that students do all of the ungraded
work on time, in order to do well on the graded work and get the most out of the class. A participation grade will count
towards 15% of the final grade. There are two components of participation that will contribute towards each student’s
participation grade, outlined below.

1) Weekly Class Activities (10% of final grade)

There will be a class activity to be completed each week. I try to vary the types of activities and make them interesting
and relevant. Please see the class schedule for the list of all class activities and their due dates. Students should think of
this component as a substitute for the types of activities that would take place in an in-person class setting. Grading will
be based on whether the student made a good effort to complete the activity or address the question, similar to
participation in a face to face class setting. Examples of these types of activities include completing a course evaluation,
completing a short worksheet, or creating a question to be used on the next exam.

Each of the weekly class activities will be weighted equally and the average of all of them will count towards 10% of the
final class grade. Please let me know in advance if you have extenuating circumstances (e.g. family emergency, travel)
that will prevent you from participating during a given week.

Weekly Class Activities Summary – Details for each activity are provided in a separate document and in the
Weekly Modules in D2L
Week 1: Attend a networking event – due at end of week 10
Week 2: D2L Photo – due at end of week 2
Week 3: Chapter 3 Worksheet – Submit in D2L Quizzing Section – due at end of week 3
Week 4: Chapter 4 Worksheet – Submit in D2L Quizzing Section – due at end of week 4
Week 5: Complete mid-quarter survey AND self-participation evaluation – due at end of week 6
Week 6: Chapter 5 Worksheet – Submit in D2L Quizzing Section – due at end of week 6
Week 7: Create a quiz or exam problem with your group (in class) – due at end of week 7
Week 8: Chapter 7 Worksheet – Submit in D2L Quizzing Section – due at end of week 8
Week 9: Chapter 8 Worksheet – Submit in D2L Quizzing Section – due at end of week 9
Week 10: Complete self-participation evaluation and course evaluation – due at end of week 10

2) Attendance and Participation in Class Activities (5% of final grade)

Students are expected to attend all classes, and participate in class activities, except in extenuating circumstances.
Students will only receive credit for attending if they are present during the entire class, are prepared for the class, are not
disruptive to other students/the professor, and are awake and engaged, and attempt class activities and group work.
Attendance will be graded as follows: > 90% classes = 100%; 80% classes = 90%; 70% classes = 80%; 60% classes =
70%; 50% classes = 60%, etc.

Supplemental Problems: There are supplemental problems and ‘in-class examples’ associated with each chapter on D2L.
I will work through the ‘in-class example’ problems during class and there will be videos of all of these examples. While
the supplemental problems and in-class examples will not be graded, you will be more prepared for exams and learn more
if you complete all of these problems. Additionally, some exam questions will likely be similar to these examples.
Solutions to all of these problems will be available on D2L, though it is recommended that you work through the
problems prior to opening the solution document.

Assignments

Assignment 1: Basic 1040 Assignment – due Week 2

Students will be provided a very basic scenario and will be required to fill in the tax form 1040 for the scenario. The
scenario and further instructions for the assignment will be provided on D2L. Students may work with one other person
on this assignment, if they choose and will submit answers in the D2L quiz section. Students may need to consult the
instructions for form 1040, or do some basic research to successfully answer all of the questions. This assignment will
count towards 5% of the final grade.

Assignment 2: Tax Research Memo Assignment – due Week 6

Students will be required to complete tax research and write a memo on a given (or chosen) topic. The memo will count
towards 10% of the final grade and will be graded on accurately and insightfully analyzing the given facts with proper tax
law and citation, as well as presentation (clarity and conciseness of the writing). Tax memos should follow a standard
format outlined in the assignment instructions. An example memo, as well as a grading rubric, can be found on D2L.
Memos should be saved in pdf and submitted to the D2L dropbox. This is an individual assignment.

Assignment 3: Basic Pass Through Assignment – due Week 8

Together, we will walk through a pass through example in which we complete a very basic partnership tax return (form
1065), create K-1’s, and then use the K-1’s to complete the individuals’ tax forms (form 1040). Following this exercise,
students will be provided a similar scenario in which they will follow the same steps on their own. They will fill out the
tax forms, and then answer some questions to demonstrate their understanding of the problem. The tax forms will not be
turned in or graded, but will need to be completed to successfully answer the questions, which will be graded. Students
may work with one other person on this assignment, if they choose. The details of this assignment are posted on D2L,
and the questions to be answered will be answered on D2L in the quiz section. This assignment will count towards 5% of
the final grade.

Assignment 4: Itemized Deductions Assignment – due Week 9

Students will be provided a very basic scenario and will be required to fill in the tax form Schedule A (Itemized
Deductions) for the scenario. The tax form will not be turned in or graded, but must be completed to answer the questions
in the quiz section of D2L. The scenario and further instructions for the assignment will be provided on D2L. This
assignment is worth 5% of the total grade. Students may need to consult the instructions for form 1040, or do some basic
research to successfully answer all of the questions. This is an individual assignment.

Assignment 5: Comprehensive Tax Return Project – due Week 10

Students will complete a comprehensive tax return project that will count towards 10% of the final grade. Students may
work with one other student, if they choose. The tax return project must be completed by hand and will be graded based
on accuracy. However, mistakes that flow through to other areas of the tax forms will only count against the student(s)
once. Students will scan their forms and upload them to the dropbox on D2L.

Quizzes
There will be three quizzes, which are meant to be a check on students’ learning and to ensure that they are staying on top
of the class material, prior to the exams. Students will be allowed 30 minutes for each quiz, which will be completed
during class (see class schedule for dates). Quizzes will contain true and false questions, as well as multiple choice
questions. The average of the three quiz scores will count towards 10% of the final grade.

Exams:
There will be two exams. Prior to the exams I will provide details about the format and content of the exams, as well as
some practice problems. Exam questions will be heavily based on the supplemental problems, examples and practice
problems covered in the class videos, assignments, as well as examples in the text. Therefore, it is very important for
students to thoroughly read the text, complete the supplemental problems, watch all class videos, and ask questions on the
discussion forums or during office hours. Students will have 1 hour and 50 minutes to complete the exam during class (or
final exam period for the second exam). Each of the two exams will count towards 20% of the final grade, for a total of
40% of the final grade.

Quiz and Exam Proctoring and Rules

For each of the quizzes and exams, students are allowed to use 1 sheet of 8.5 x 11 inch paper (front and back) with notes.
Students must create their own note sheet, though it can be typed or hand-written. The professor may collect the note
sheets with the quizzes and exams. In addition to your note sheet, I will provide a reference sheet (also called
“instruction” or “help” sheet) with information that changes from year to year, such as the tax rate tables. I will also
provide ample scrap paper to use, as well as custom scan trons that will be used for the quizzes and exams. No other
materials will be allowed to be used or referenced during quizzes or exams. Please bring a basic non-Internet calculator to
class and for quizzes and exams.

Quiz and Exam Review

Quizzes will be returned to students for them to keep, and solutions to the quizzes will be posted on D2L as soon as all
quizzes have been taken. Students will have an opportunity to look at their exams and the solutions during the class
period following the exam, but solutions will not be posted and students may not take exams with them. Students may
always visit my office hours or make an appointment to review their exams.

Quiz and Exam Schedule

Quiz 1: 1/29
Exam 1: 2/5
Quiz 2: 2/26
Quiz 3: 3/11
Exam 2: 3/18

Exam Conflicts:
Please check your schedules and let me know as soon as possible if you have a conflict with any of these dates. If you
have a conflict, I generally allow quizzes and exams to be taken in the testing center (at the student’s expense) during the
week of the quiz/exam. Outside of extenuating circumstances, arrangements for this must be made a week prior to the
scheduled quiz/exam.

Grading:
Final Grades will be allocated based on performance on the following items as follows:

Assignment 1: Basic 1040 5%

Assignment 2: Tax Research Memo 10%
Assignment 3: Pass Through 5%
Assignment 4: Itemized Deductions 5%
Assignment 5: Comprehensive Tax Return Project 10%
Participation 15%
Quizzes 10%
Exam 1 20%
Exam 2 20%
* I may apply a curve to the final grade depending on the overall class mean and median. Pluses and minuses are given,
so the possible grades for the class are as follows:

Letter Grade Percentage

A 93.0 – 100.0
A- 90.0 – 92.9
B+ 87.1 – 89.9
B 83.0 – 87.0
B- 80.0 – 82.9
C+ 77.1 – 79.9
C 73.0 – 77.0
C- 70.0 – 72.9
D+ 67.1 – 69.9
D 63.0 – 67.0
D- 60.0 – 62.9
F Below 60.0

Extra Credit Opportunities

Throughout the term there will be several extra credit opportunities.

Research Memo
The first is related to questions that arise (via email, office hours, etc.) that are outside the scope of what we are covering.
Frequently, students have questions that are related to what we are covering, and potentially interesting, but outside the
scope of what we are covering in class. Because we have so much material to cover in class, if the question is sufficiently
related and sufficiently difficult, I will allow the student who asked the question to conduct some research to find the
answer for extra credit. To receive full extra credit, the student must use the Internal Revenue Code to find the answer to
the question. The answer should be in client file memo format, with proper citations. The length of the memo will vary
depending on the question, but will generally be between a paragraph and a page. The extra credit will increase the
student’s final percentage grade by 0.5% (i.e. from 83.3% to 83.8%). Each student may complete no more than 2 of these
extra credit research memos throughout the term (which could result in a final grade increase of 1 percentage point). Note
that no extra credit will be given if I do not state that the student may research the question for extra credit.

I will occasionally provide extra credit question(s) on quizzes and exams. After exams have been graded, if more than 2/3
of the class got a question wrong, I will consider making that question extra credit.

Feedback:
I welcome constructive feedback on ways to improve the course. I will formally solicit feedback about halfway through
the quarter, but please feel free to discuss any concerns with me during office hours or through email.

Academic Dishonesty:
Academic dishonesty will not be tolerated in this class, and any instances of such will be treated very seriously, following
the procedures outlined in The Student Code of Conduct. Academic dishonesty includes, but is not limited to:
 plagiarism
 buying or obtaining course assignments, exams, and research papers that are not one’s own work
 selling or providing course assignments, exams, and research papers for another person to use
 using unauthorized aids, such as notes, books, phones, etc. on exams or assignments
 performing academic assignments (including examinations) for other persons
 unauthorized disclosure and receipt of academic information

Violation of the SCC may lead to disciplinary action. Students may obtain copies of the Student Code of Conduct by
contacting the campus judicial officer at 503-725-4422, or by visiting the office in Room 433, Smith Memorial Student
Union.

Disability accommodation:
Any student with a documented disability (e.g., physical, learning, psychiatric, vision, hearing, etc.) who needs to arrange
reasonable accommodations must contact me at the beginning of the quarter (i.e. within the first two weeks) and provide
documentation from the Disability Resource Center. Please remind me about any special accommodations a week prior to
each of the exams.

School of Business Advising & Career Services

The School of Business provides Career & Academic Advisors to assist students in making the most of their collegiate
experience and to prepare for their career plans. Career & Academic Advisors are trained to provide counsel in a wide
range of issues including selecting a business major, planning out classes, finding resources on campus, creating a job
search strategy, writing resumes and cover letters and so much more. Career & Academic Advisors are here to help
students with all of their academic & career related questions. Business students are assigned a Career & Academic
Advisor who will assist them from orientation to graduation and career.

Advisors are available by appointment. Students can make a career & academic advising appointment online by
visiting https://www.pdx.edu/sba/career-academic-advising or by visiting their office in suite 220 of the Karl Miller
Center (615 SW Harrison Street) or calling 503-725-3712. Drop-in peer advising hours are available as well. Drop-in
hours are held regularly throughout the week and are designed to help answer routine or simple questions. The School of
Business provides a great deal of job search resources online, to access that information, please visit the School of
Business website at www.pdx.edu/sba and click on Undergraduate, then Student Resources. Students with concerns about
courses, requirements or advising services can contact Becky Sanchez, the Director of Career & Academic Services, via
email at beckys@pdx.edu.

Title IX Reporting
As an instructor, one of my responsibilities is to help create a safe learning environment for my students and for the
campus as a whole. We expect a culture of professionalism and mutual respect in our department and class. You may
report any incident of discrimination or discriminatory harassment, including sexual harassment, to either the Office of
Equity and Compliance or the Office of the Dean of Student Life.

Please be aware that as a faculty member, I have the responsibility to report any instances of sexual harassment, sexual
violence and/or other forms of prohibited discrimination. If you would rather share information about sexual harassment
or sexual violence to a confidential employee who does not have this reporting responsibility, you can find a list of those
individuals. For more information about Title IX, please complete the required student module Creating a Safe Campus in
your D2L.

Syllabus Policy:
This syllabus is subject to change as the quarter progresses. Any changes will be posted to the news section of the course
web site and announced in class.
 Master Class Schedule

Week Topic Reading Videos Graded Items Other Activities

1 CH 1 CH 1 Introduction  Week 1 Class Activity – Attempt CH 1 Supplemental
1/6 Assignment 1 CH 1 Lecture Networking Event (due 12/8) Problems
Instructions CH 1 Examples

2 CH 2 CH 2 CH 2 Lecture  Assignment 1 (due Sunday) Attempt CH 2 Supplemental

1/13 CH 2 Examples  Week 2 Class Activity – D2L Problems
photo

3 CH 3 CH 3 CH 3 Lecture  Week 3 Class Activity – Attempt CH 3 Supplemental

1/20 Tax Research Assignment 2 CH 3 Examples Complete CH 3 Worksheet Problems
(NO CLASS Instructions Tax Research Review Assignment 1
on 1/20, Solutions
Shortened Become familiar with RIA
EVENING Checkpoint
CLASS on
1/22)

4 CH 4 CH 4 CH 4 Lecture  Week 4 Class Activity – Attempt CH 4 Supplemental

1/27 Quiz 1 CH 4 Examples Complete CH 4 worksheet Problems
 Quiz 1 – in class 1/29
(covers CH 1 – CH 3)

5 Exam 1 (CH  Exam 1 – in class 2/5 (covers Attempt Exam 1 Practice

2/3 1 – 4) CH 1 – CH 4) Problems
 Week 5 Class Activity – Review Quiz 1 Solutions
Complete mid-quarter survey Review for Exam 1
and Self Participation
Evaluation (due Sunday of
NEXT WEEK)

6 CH 5 CH 5 CH 5 Lecture  Assignment 2 Attempt CH 5 Supplemental

2/10 CH 6 CH 6 CH 5 Examples  Week 6 Class Activity – CH Problems
CH 6 Lecture 5 Worksheet Attempt CH 6 Supplemental
CH 6 Examples  Remember to also complete Problems
Week 5 Class Activity

7 Passthroughs Assignment 3  Week 7 Class Activity- Review CH 5 Worksheet

2/17 Quiz 2 Instructions Create Own Problems (in Solutions
class activity – if absent Start Assignment 3 AFTER
please contact professor) Passthrough Example in class

8 CH 7 CH 7 CH 7 Lecture  Quiz 2 – in class 2/26 Attempt CH 6 Student

2/24 Assignment 4 CH 7 Examples (covers CH 5 – CH 6) Generated Problems
Instructions Wash Sale Video  Assignment 3 Worksheet (available 2/25)
Assignment 5  Week 8 Class Activity – CH Attempt CH 7 Supplemental
Instructions Problems
7 Worksheet
Review Quiz 2 Solutions
9 CH 8 CH 8 CH 8 Lecture  Assignment 4 Attempt CH 8 Supplemental
3/2 CH 8 Examples  Week 9 Class Activity – CH Problems
8 Worksheet Review CH 7 Worksheet
 Solutions
Review Assignment 3
Solutions
10 Tax Return  Quiz 3 – in class 3/11 Review for Final Exam
3/9 Project (Covers CH 7-8)
 Quiz 3  Week 10 Class Activity - Review CH 8 Worksheet
Exam 2 Complete Self Participation Solutions
Review Evaluation and course Review Quiz 3 Solutions
evaluation Review Assignment 4
Solutions
 Assignment 5

Final  Exam 2 (Covers CH 5-8)

Exam Final Exam Period
3/18 M/W Class 3/18 @ 12:30pm
W Eve Class 3/18 @ 5:30pm

*Please note that this schedule is tentative and subject to change (Exam dates will not change unless there are extenuating
circumstances). Changes will be announced in class or emailed to students and posted on D2L.
** For purposes of this class, weeks are from Monday through Sunday.
***Items are due Sunday night at 11:59pm unless otherwise stated (the Sunday at the end of the week).