The introductory tax course revisited.

The introductory undergraduate tax course has undergone significant changes, as has the way the curriculum is delivered. After a brief summary of curriculum changes, this column will focus on the potential benefit of using technology in the introductory tax course, including streamlining course administration (e.g., distributing course materials) and helping students develop (1) technology skills required in tax practice (e.g., use of return preparation and research software) and other business settings (e.g., technology-based communications); and (2) other valuable business skills (e.g., reviewing work prepared by other students).

Recent Changes

Since 1990, the first tax course's content has shifted from a compliance orientation that focuses on individuals to an entity-based approach that focuses on integrating planning, research and financial accounting concepts. This shift is due in large part to the introduction of the AICPA Model Tax Curriculum (MTC) (introduced in 1996 and revised in 1999), which implemented the Accounting Education Change Commission's recommendations on restructuring the accounting curriculum. The MTC's objectives for the introductory tax course are to:

* Introduce students to a broad range of tax concepts and types of taxpayers.

* Emphasize taxation's role in the business decisionmaking process.

* Teach students how to conduct basic tax research and tax planning.

* Expose students to professional standards and ethics.

* Teach students the interrelationship and differences between financial and tax accounting.

The AICPA's adoption of a research-oriented, computer-based licensing examination will likely accelerate this change, due to its integration of topics and research orientation. (For a detailed discussion of the MTC and the new CPA examination, see Dennis-Escoffier, et al., Tax Education, "Preparing Students for the New CPA Examination," TTA, February 2003, p. 108.) Moreover, educators can use available technology--both in class and out--to help them meet the MTC's and the new CPA examination's challenges.

Using Technology

Prior to the introduction of the MTC, the first undergraduate tax course was a detailed, compliance-based course that focused on individual taxation. Thus, adopting a broadbased, planning-oriented course that integrates taxation of various entities requires great effort for even the most motivated and experienced faculty. Effectively incorporating technology into the classroom can also be quite challenging. However, technology can aid the transition from a traditional introductory tax course to one based on the MTC. The remainder of this column shows ways in which technology can be used to help implement the MTC. (The author uses all of the technology described in this paper in his undergraduate Tax I course; for details, visit http://phduh.com/unc/baac428/index.html.)

Web-based information: Course websites centralize course administration by providing students with "one-stop shopping" for both materials and feedback. Typical information distributed from a website includes the syllabus, class notes, handouts and assignments. It can also provide useful links to sites such as the IRS website, online tax research databases an textbook publishers' websites. The latter often include, for each chapter, PowerPoint[TM] presentations, online tutorials and practice quizzes an web-based exercises.

A course website can also be used to obtain student information. Online forms can be used to gather student background data, including previous and current courses, grade-point average and best time to have group meetings outside of class. Such information assists in creating effective student groups. Web forms are also a good way to gather peer evaluations from students. The information can be emailed in a variety of formats, to be cut and pasted into a spreadsheet or sent directly to a online database.

Instructors with web-authoring experience can use tools such Microsoft FrontPage[TM] or Macromedia's Dreamweaver[TM] to create a course website. Many universities provide instructors with easy-to-use web-based course-management software, such as WebCT[TM] and Black Board[TM]. All instructors need do is upload (transfer) content into the ready-made course "shell," which contains separate pages for items such as announcements, syllabus, faculty information, course material, assignments, communications, discussion boards, websites and an online grade-book. The course management software allows students to access course materials from any computer connected to the Internet. To maintain privacy, the course management software has built-in password protection; only enrolled students have access to course materials, and students can view only their own grades.

In-class technology: The use of technology in the classroom greatly expands an instructor's pedagogical options. Ideally, Tax I should be taught in an instructional lab in which all students (or groups) have a computer at their desk. The instructor should be able to display an image from his or her computer--or any of the student computers--on the main screen (using a data projector), as well as on the other computers. Two other useful classroom tools are (1) a document camera, which is used to display hard copy and (2) a digital writing tablet, which is an input device that uses a "pen" instead of a mouse to write on the screen.

PowerPoint[TM] presentations: These presentations can be used to aid lectures and promote student interaction The instructor can present problems and questions with only solution templates to help students quickly complete problems in class. Students download arid print the presentations before class. While in class, the instructor shows students how to complete a sample problem on the screen by "writing" with the digital writing tablet; the class then completes the other problems presented.

Online libraries: Computers in class also allow an instructor to supervise students while using online tax research libraries. Students (or groups) can research in class some of the topics being covered. When a student (or group) finds the answer, the instructor can display that student's (or group's) computer image on the main screen and have the student (or group) describe how the answer was obtained, including keywords searched and databases used. Students can also research answers to questions posed by other students on material being covered in class.

Return preparation: Today, most tax advisers use commercial packages to prepare tax returns. Some vendors provide full or restricted versions of their software to educational institutions free or at low cost, making it easy to provide students with job-related technology skills. One way to give students experience researching and preparing a complex return without the usual time commitment is to: (1) break it into several parts and assign one or two to students (or groups), to determine the proper tax treatment and complete the appropriate portions of an electronic tax return; (2) have students share their information with the rest of the class via an online discussion board; (3) allow students to correct work prepared by others; and (4) have all students (or groups) prepare an entire tax return, which is submitted electronically to the instructor.

Outside tax research assignments:

To give students an opportunity to resolve more complex compliance issues and address planning concerns, outside tax research assignments are often used. These assignments allow students to gain job-related experience, including writing memoranda and client letters. Moreover, by having students (or groups) post and review other students' (or groups') research memoranda on a discussion board, they can develop supervisory skills, by providing constructive review comments.

Online testing: Many students currently taking Tax I will be taking a computer-based certification examination, such as the CPA (beginning April 2004), certified management accountant or certified financial manager examination. Administering online quizzes helps students adjust to a computerized testing environment. Also, because the CPA examination will have a research component, students sbould have a solid grasp of the Code's structure and the location of commonly encountered provisions.

Weekly quizzes can be given throughout the semester, and are easily administered online by using course management software's online testing features. An instructor can provide students with a Code structure guide and a list of about 100 commonly used Code sections, by posting it on the course website. Early quizzes should help students learn the Code's overall structure; later quizzes should focus on learning the numbers of commonly used Code sections. By using online testing software, quizzes can be self-administered outside of class; the software can select questions randomly from a pool, and automatically and instantly grade quizzes, while posting the grades into an online gradebook.

Communications: Using the technologies mentioned in this column also exposes students to a variety of electronic communications techniques. For tax returns and research assignments, students gain experience in posting messages and file attachments to discussion boards and sending email with file attachments. By forcing students to communicate electronically, they become less intimidated by electronic media and learn its benefits and burdens.

Conclusion

Tax practice has changed significantly over the past two decades; faculty teaching the introductory undergraduate tax course have struggled to keep up with all of the changes. However, the MTC and pending changes to the CPA examination have put greater pressure on tax faculty to change the way undergraduate tax is taught. Incorporating technology into the curriculum mad course administration can help faculty successfully make the change, but not without cost.

First, the university, college and department must commit to help the faculty incorporate technology into their courses, by consistently making technology available in the classroom. Second, students need regular access to computers, either by having adequate computer lab facilities or by requiring them to have their own computers and up-to-date software. Third, faculty must be assured that the time and effort needed to develop and maintain a technology-enhanced course will be included in the reward structure. This means, for example, that a faculty member who introduces new technologies and pedagogies and receives low student evaluations should still be able to receive high marks for teaching. Finally, faculty need to have a vision of their future classes and constantly evaluate and refine that vision. They cannot successfully introduce too many changes to a course in any given semester; several semesters are usually needed to refine changes.

STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION (Required by 39 U.S.C. 3685)

1. Title of publication: The Tax Adviser.

2. Publication no: 715-180.

3. Date of filling: October 1, 2003

4. Frequency of issue: monthly.

5. No. of issues published annually: 12.

6. Annual subscription price: Tax Section member--new & renew, $30; AICPA member--intro, $57; new & renew, $83.30: non-member--intro, $78.50; new & renew. $98.

7. Location of known publication office (street, city, county, state and ZIP code) (not printers): AICPA, Harborside Financial Center, 201 Plaza Three, Jersey City, N.J. 07311-3881.

8. Location of headquarters or general business offices of the publishers (not printers): AICPA, Harborside Financial Center, 201 Plaza Three, Jersey City, N.J. 07311-3881.

9. Names and complete addresses of publisher, editor and managing editor: Publisher (name and address): Colleen Katz, AICPA, Harborsude Financial Center, 201 Plaza Three, Jersey City, N.J. 07311-3881. Editor (name and address): Lesli S. Laffie, AICPA, Harborside Financial Center, 201 Plaza Three, Jersey City, N.J. 07311-3881. Managing editor (name and address): Joan E. Mancuso, AICPA. Harborside Financial Center, 201 Plaza Three, Jersey City, N.J. 07311-3881.

10. Owner (If owned by a corporation, its name and addrres must be stated and also immediately thereunder the names and addresses of all stockholders owning or holding 1 percent or more of total amount of stock. If not owned by a corporation, the names and addresses of the individual owners must be given. If owned by a parnership or other unincorprated firm, its name and address, as well as that of each individual must be given. If the publication is published by a nonprofit organization, its name and address must be stated): Name: The American Institute of Certified Public Accountants. (A professional association organized as a nonprofit, nonstock corporation.) Address: Harborside Financial Center, 201 Plaza Three, Jersey City, N.J. 07311-3881.

11. Known bondholders, mortgages, and other security holders owning or holding 1 percent or more of the total amount of bonds, mortgages or other securities (if there are none, so state): None.

12. For completion by nonprofit organizations authorized to mail at special rates (Section 423.12 DMM only). The purpose, function, and nonprofit status of this organization and the exempt status for federal income tax purposes: Has not changed during preceding 12 months.

14. Issue date for circulation below: Vol. 34 No. 9, September 2003.

15. Extent and nature of circulation:

A. Total no. of copies printed (net press run):Average number copies each issue during preceeding 12 months: 26,644. Actual number copies of single issue published nearest filing date: 26,886.

B. Paid Circulation:

1. Sales through dealers and carriers, street vendors and counter sales: Average number copies each issue during preceeding 12 months: none. Actual number copies of single issue published neares filing date: none.

2. Mail subscriptions: Average number copies each issue during preceding 12 months: 19,450. Actual number copies of each issue published nearest filling date: 19,467.

C. Total paid circulation (Sum of B1 and B2):

Average number copies each issue during preceding 12 months: 19,450. Actual number copies of single issue published nearest filing date: 19,467.

D. Free distribution by mail, carrier or other means, samples, complementary and other free copies: Average number copies each issue during preceding 12 months: 4,325. Actual number copies of single issue published nearest filing fate: 4,390.

E. Total distribution (Sum of C and D): Average number copies each issue during preceding 12 months: 23,775. Actual number copies of single issue published nearest filing date: 23,857.

F. Copies not distributed:

1. Office use, left over, unaccounted, spoiled after printing: Average number copies each issue during preceding 12 months.: 2,869. Actual number copies of single issue published nearest filing date: 3,029.

2. Return from news agents: Average number copies each issue during preceding 12 months: none. Actual number copies of single issue published nearest filing date: none.

G. Total (Sum of E, F1 and F2--should equal press run shown in A): Average number copies each issuea during preceding 12 months: 26,664. Actual number copies of singles issue published nearest filing date: 26,886.

H. Percent paid and /or requested circulation: Average number copies each issue preceding 12 months: 81.81%. Actual number copies of single issue published nearest filing date: 81.60%.

I hereby certify that the statements made by me above are correct and complete. Collen Katz, Publisher

Annette Nellen, CPA, Esq.

Professor, Department of Accounting & finance

San Jose State University

San Jose, CA

FROM RICHARD I. NEWMARK, PH.D., CPA, ASSISTANT PROFESSOR OF ACCOUNTING, KENNETH W. MONFORT COLLEGE OF BUSINESS, UNIVERSITY OF NORTHERN COLORADO, GREELEY, CO