ALAN R. SUMUTKA
ACC-335 SMALL BUSINESS TAXATION
SYLLABUS – FALL 2008
COURSE OVERVIEW
Throughout the existence of a small business, owners are faced with an array of
financial and operating decisions which are influenced by a host of tax
considerations. Some of the most fundamental decisions occur before or
early in an enterprise's existence, yet have a profound impact on its future
cash flows and financial well-being. Examples include a decision to buy
an existing business or to form a new one, the form of entity, its year-end,
its capital structure, asset acquisition and titling, hiring of workers,
compensation structure of owners and workers, and probable tax liabilities.
As operations begin, many of these issues continue and others surface, such as
taxability of income, the deductibility of expenses, the availability of tax
credits, tax recordkeeping requirements, and tax remittance requirements.
The disposal of assets during ongoing operations via sale,
exchange, or casualty/theft produce various tax consequences. The
disposal/termination of a business interest/entire business have
many tax consequences that are best considered in advance via succession
planning. All of the consequences of these transactions are reported on
numerous tax returns/forms which must be signed by the owner with the potential
for penalties and/or incarceration for fraudulent reporting of information.
Usually, small business owners are forced to interact with a host of
professionals and external agencies. The prospective/current small
business owner needs to be knowledgeable in all of these areas to ensure the
success of the operation.
COURSE OBJECTIVES
This course is designed to ensure that the prospective/current business owner
has:
· an awareness of the tax issues most likely to be encountered in the operation of a small business,
REQUIRED MATERIALS
There are no required textbooks. Students will be provided with handout
materials and self-developed questions, problems, and case studies.
GRADES
1. Final grades are based on the following scale:
|
A |
90-100 |
|
D |
60-69 |
+ or - will be awarded at the instructor's discretion. |
|
B |
80-89 |
|
F |
< 60 |
|
|
C |
70-79 |
|
|
|
|
2. Final grades are
determined as follows:
|
Mid-term exam |
40% |
|
Final exam |
40% |
|
Homework |
10% |
|
Class Participation |
10% |
EXAMINATIONS
- Final exam is not comprehensive.
- Exams are not scaled.
- Failure to take an exam results in a grade of zero unless a well-documented
excuse is furnished. Make-up exams are given at the end of the semester
only.
- Cheating results in a grade of zero.
HOMEWORK
- Failure to complete 2 homework assignments results in the loss of all 10
points. Otherwise, you earn the 10 points. To count as a "completed
assignment," the assignment must be completed in its entirety. Solutions
do not have to be correct.
- Homework will be collected at the beginning of each class. You
will need a second copy of your homework for in-class review.
ATTENDANCE/CUT POLICY
- Material presented in class is an integral part of the course. Therefore,
each student is permitted only one "cut." For each class or part
of a class not attended in excess of one class, the student's final grade will
be reduced by five points.
ACADEMIC DISHONESTY
Academic dishonesty includes any unauthorized collaboration or
misrepresentation in the submission of academic work. In all written
work, whether in class or out of class, the student's name on the work is
considered to be a statement that the work is his or hers alone, except as
otherwise indicated. Students are expected to provide proper citations
for the statement and ideas of others whether submitted word for word or
paraphrased. Failure to provide proper citations will be considered
plagiarism and offenders will be subject to the charge of plagiarism specified
in the statement of regulations.
Similarly, students are expected to adhere to all regulations pertaining to examination conduct. These regulations are designed to insure that the work submitted by the student on examinations is an honest representation of that student's effort and that it does not involve unauthorized collaboration, unauthorized use of notes during the exam, or unauthorized access to prior information about the examination.
EMAIL
Your Rider email account is your email address for all official email
communications from the University. You are expected to check your Rider
email account on a frequent and consistent basis to stay current with
university-related communications. Any email from me about this course
will only be sent to your official Rider email address. I will open
email from your Rider email address only. Also please include the letters
"SBT" in the subject line.
MISCELLANEOUS
- If you desire to withdraw from the class, you must do so no later than the
student's discretionary withdrawal date. THE INSTRUCTOR WILL NOT SIGN
COURSE WITHDRAWAL FORMS.
- Use of tape recorders is prohibited.
ORDER OF STUDY
|
Week # |
Topic |
|
1 |
Overview: Sources of Tax Law, Major Types of Taxes, IRS Audit Process/Consequences |
|
2 |
Overview: IRS Presentation, Broad Tax Formula-C Corporations and Individuals |
|
3 |
Calculating Business Profits: Fundamentals, After-Tax Cost of Fixed Asset Acquisitions |
|
4 |
Calculating Business Profits: Tax Cost of Employees-Hiring, Payroll Taxes |
|
5 |
Calculating Business Profits: Tax Cost of Employees-Fringe Benefits |
|
6 |
Taxation of Business Profits: C Corporations |
|
7 |
Midterm Exam, Exam Review |
|
8 |
Taxation of Business Profits: Individuals |
|
9 |
Taxation of Business Profits: Sole Proprietorships, LLCs |
|
10 |
Taxation of Business Profits: Partnerships, LLCs, S Corporations; NJ Income and Sales Tax |
|
11 |
Tax Efficient Management of Personal Assets |
|
12 |
Gift and Estate Taxation; Estate Planning |
|
13 |
Succession Planning for Family-Owned Businesses; Buying and Selling a Business; State and Interstate Tax Issues; Dealing with Professionals and External Agencies |
|
14 |
Final Exam |