LONG ISLAND UNIVERSITY - C.W. POST CAMPUS

COLLEGE OF MANAGEMENT

SCHOOL OF PROFESSIONAL ACCOUNTANCY

SPRING 2004 C.A. BARRAGATO, Ph.D., CPA, CFE

TAX 771 CORPORATE TAXATION

Bulletin Description

This course reviews the tax aspects of corporate formations, including corporate characteristics, transfers to controlled corporations, corporate capital structure, the income tax calculations for corporate entities and elections. Topics covered include corporate stockholder relationships; corporate distributions, corporate redemptions and partial liquidation, collapsible corporations, accumulated earnings and personal holding companies.

Prerequisites

TAX 620 & TAX 760

Course Objectives

Students will gain an understanding of the federal income tax treatment of corporations, including formation, operation, distributions, redemptions and liquidation. Students will also be exposed to the federal tax treatment of shareholders related to these same transactions.

Course Materials

Text: Bittker & Eustice, FEDERAL INCOME TAXATION OF CORPORATIONS & SHAREHOLDERS, 7^th edition-student version (WGL 2000) Internal Revenue Code (current edition)

Contact Hours/Assigned Homework

The class meets once a week for 14 weeks. Each class is one hour and fifty minutes. Chapter readings and assigned homework should average between 4 to 6 hours per week.

Method of Instruction

This course will integrate lecture, class discussion, review of problems, and independent research, all of which will involve a substantial commitment on the part of the students and the Professor. However, the process, though challenging, should prove to be interesting and beneficial. Preparation for class by reading the chapters and working the homework problems is essential to fully assimilate the material. Students should keep up-to-date with the class throughout the semester. Participation in class discussions and problem-solving exercises is expected.

SPRING 2004 C.A. BARRAGATO, Ph.D., CPA, CFE

TAX 771 CORPORATE TAXATION

Class Regimen

Students are expected to come to class prepared – meaning they have read the chapter(s)/Code Sections to be covered for each session and have completed all assigned homework to the best of their ability.

Students are asked to refrain from using cell phones and beepers during class. If you need to be accessible, set the telephone or beeper on vibrate mode and discretely excuse yourself.

Students will be withdrawn by the Professor for more than 2 unexcused absences.

Make-up examinations will not be given except at the Professor's discretion for most unusual circumstances.

Examinations and Grading

Grade Composition

Mid-Term Exam 35%

Final Exam 35%

Tax problem 20%

Class participation 10%

Total 100%

Class Participation

Evaluations of class participation will be based on the instructor’s periodic assessment of each student’s contribution to the class sessions. Students may feel that this process results in a very subjective evaluation of one’s talents. But, when these observations are spread over a significant

period of time, reasonable conclusions can be drawn about an individual’s abilities. Both the quality and quantity of each student’s contributions are important.

Academic Honesty

Adherence to Long Island University’s code of academic honesty is expected. Academic dishonesty is the giving, taking, or presenting of information or material by a student with the intent of unethically and fraudulently aiding oneself or another on any work which is to be considered in the determination of a grade or the completion of academic requirements.

SPRING 2004 C.A. BARRAGATO, Ph.D., CPA, CFE

TAX 771 CORPORATE TAXATION

Calculation of Grade

The student's grade will be determined as follows:

Grade Percentage

A > 93%

A- 90%-92%
B+ 88%-89%
B 83%-87%

B- 80%-82%
C+ 78%-79%
C 73%-77%

C- 70%-72%
F <70%

Professor’s Office Hours

My office is located in Lorber Hall – room 307. I am available during office hours or by

appointment, if the posted hours are inconvenient for you. Call 516 - 299-3279 to

contact me by telephone. The office fax is 516 - 299-2297.

My e-mail address is charles.barragato@liu.edu

My web page address is http://phoenix.liu.edu/~cbarraga

SPRING 2004 C.A. BARRAGATO, Ph.D., CPA, CFE

TAX 771 CORPORATE TAXATION

Chapter	Topic	IRC Sections
1	Introduction
2	Definition of Corporation	Reg. §§301.7701-1,2,3,4
3	Organization of Corporation	§351
4 (Parts A & B)	Capital Structure	§§163(a), (j), 385
5	Corporation Income Tax	§§11, 63(a), 162(a), 170 (a), (b)(2), (d)(2), 1211(a), 1212(a), 243, 246
8 (Parts A & B)	Property & Cash Distributions	§§301, 311, 312, 316-317
8 (Parts C & D)	Stock Distributions	§§305-307
1-5 & 8	MIDTERM EXAMINATION
6	Subchapter S - overview	§§1361-1363, 1367-1368, 1371 1374-1375
7	Penalty Taxes	§§531-537, 541-543, 545-547
9	Stock Redemptions	§§301-304, 311, 312, 318
10 (Parts A & B)	Complete Liquidation & Stock Distributions I	§§331-337, 346
10 (Parts C & D)	Complete Liquidation & Stock Distributions II	§§338, 341, 1060
6, 7, 9 & 10	FINAL EXAMINATION

For all assignments, the associated code sections should also be read.