ACCT 323: Federal Income Tax I

ACCT 323, Federal Income Tax I, is a 3-credit undergraduate course at University of Maryland Global Campus, with ACCT 220 or FINC 321 as the prerequisite.

UMGC describes it as a study of data and processes related to preparing federal income tax for individuals and other entities. The objective is to explain the legislative process, conduct tax research, evaluate tax implications and complete an individual tax return.

Topics include the legislative process, tax policy, research, and the evaluation of transactions and decisions for planning and compliance, with an emphasis on ethics and professional responsibilities. Tax is detailed and changes often, so students struggle less with arithmetic than with finding the right rule for the right year and applying it precisely.

What ACCT 323 Covers

Key Concepts Explained

How Federal Tax Law Is Made

Revenue bills originate in the House of Representatives, where the Ways and Means Committee considers them, before going to the Senate Finance Committee, then to both chambers and the President.

Enacted provisions become part of the Internal Revenue Code. The Treasury issues regulations interpreting the Code, the IRS issues rulings and procedures, and courts decide disputes.

The Hierarchy of Tax Authority

The Structure of the Individual Tax Calculation

The individual calculation follows a fixed order: gross income, minus adjustments, gives adjusted gross income (AGI); minus the standard deduction or itemized deductions (and certain other deductions) gives taxable income; tax is calculated, then credits reduce it. Knowing where an item belongs in this order is half the battle.

Ethics and Professional Responsibility

UMGC emphasizes ethics throughout the course. Tax preparers have duties to their clients but also to the tax system: they must not take positions without adequate support, must exercise due diligence with client information and must advise clients of errors in previously filed returns.

Treasury Department Circular 230 governs practice before the IRS, and the AICPA's Statements on Standards for Tax Services set professional expectations for CPAs. Ethics questions often ask what a preparer should do when a client wants to omit income or claim a deduction without records.

Writing a Tax Research Memo

Tax research tasks usually follow a standard structure: facts, issues, authorities, analysis and conclusion. State only the facts that matter, phrase each issue as a precise question, cite primary authority first (Code section, regulation, ruling or case) and apply it to the facts.

Where authorities conflict or facts are uncertain, say so and explain the risk. End with a clear conclusion and, where useful, a recommendation for the client. Avoid copying long passages of the Code; explain the rule in your own words.

Typical Assignments and How to Approach Them

Where Students Get Stuck

• Wrong tax year. Always use figures and rules for the year the assignment specifies.
• Adjustments versus deductions. Know which items reduce AGI and which come after it.
• Weak sourcing. Websites are not authority; cite primary sources.
• Ethics questions. Learn the preparer's professional responsibilities, not just the computations.

Study Tips for ACCT 323

• Draw the individual tax calculation as a flowchart and keep it beside you.
• Bookmark IRS forms and instructions for the relevant year.
• Practice one research question a week using primary sources.
• Check every return line against its source document.

How We Help with ACCT 323

Send the instructions, facts, any forms or templates and your workings. A tax tutor can explain rules, prepare a model computation or memo for reference, or review your draft. See our accounting assignment help guide for more.

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