Preface xiii
Ethics, Professional Responsibilities, and Federal Tax Procedures 1
Treasury Department Circular 230 1
Liability as a Tax Preparer 3
Regulation of Accountants 5
Accountants' Liability 6
Tax Preparer Penalties 9
Taxpayer Penalties 11
Sources of Tax Authority and Research 13
Tax Practice and Procedure 14
Compliance Responsibilities 15
Contracts 17
Contracts: Offer and Acceptance 17
Contracts: Consideration 20
Writing and Records 21
Contracts: Defenses to Formation 23
Contracts: Discharge of Performance 26
Issues of Passage of Title and Risk Loss 29
Formulas for Damage 32
Sales 35
Agency 38
Types of Agency Relationships and Creation 38
Duties of Agents and Principals 39
Terminating Agent's Authority 40
Liability of Agents and Principals 41
Debtor-Credit Relationships 43
Suretyship: Introduction, Creation, and Types 43
Rights of Sureties 44
Defenses of Sureties 45
Cosureties 46
Article 9 UCC Secured Transactions 47
Collateral 47
Security Agreement 48
Attachment and Perfection 49
Priorities in Security Interests 51
Rights of Secured Parties and Debtors 53
Bankruptcy and Insolvency 54
Voluntary Filing-Chapter 7 54
Involuntary Filing-Chapter 7 55
Business Reorganizations-Chapter 11 56
Repayment Plans-Chapter 13 58
Alternatives to Bankruptcy 59
Powers of Bankruptcy Trustee 60
Distribution of Debtor's Estate 62
Denial of Discharge 66
Federal Securities Regulation 67
Civil Liability Provisions: Sec. 11 of 1933 Securities Act 67
Civil Liability Provisions: Sec. 10(b) of 1934 Securities Exchange Act 71
Civil Liability Provisions: Sec. 18(a) of 1934 Securities Exchange Act 75
Criminal Securities Law Provisions 79
Employment Tax 80
Federal Insurance Contributions Act (FICA) 80
Federal Unemployment Tax Act (FUTA) 81
Selection and Formation of a Business Entity 83
Partnership Characteristics 83
Limited Liability Arrangements 90
Corporations 93
Promoters 96
Directors and Officers 97
Property Transactions 101
Realized Gain or Loss 101
Taxation of Gains and Losses 103
Related-Taxpayer Transactions 104
Special Transactions 105
Sec. 1245 Depreciation Recapture 107
Federal Taxation of Individuals 108
Individual Income Tax 108
Gross Income 110
Interest 112
Taxation of Income from Business Entities 115
Personal and Dependency Exemptions 135
Filing Status 137
Personal Tax Credits 140
Child Tax Credit 144
Accounting Method 146
Depreciation 147
Federal Gift Tax and Trusts 151
Property Received by Inheritance or Gift 154
Trusts 156
Computing Taxable Income of Trusts 159
Corporate Taxation 161
Corporate Income Tax 161
Computing Corporate Income Tax 163
Supplemental Tax Schedules 169
Accumulated Earnings Tax 171
Affiliated Corporation Transactions 172
Nonliquidating Distributions to Shareholders 173
Corporate Complete Liquidation 175
Corporate Reorganizations 176
Section 1244 Stock 177
S Corporations 178
Foreign Tax Credit 186
Family and Medical Leave Credit 186
Partnership Taxation 187
Formation of Partnerships 187
Taxation of Partnerships 191
Distributions 193
Sale of Partnership Interest 195
Termination 196
Index 197
