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Tax Return Project - Fall 2001

General Instructions

  The "Tax Return Project" requires the preparation of a Year-2000 tax return for an individual or married couple. The project must be completed in two stages, by the submission dates indicated in the Schedule of Classes.
  The project must be completed using a tax-return-preparation computer program. Which program is not important. On each submission, please include the name of the program used on the cover sheet. If you cannot locate, gain access to, or otherwise have difficulty in being able to use, a program three weeks before the first submission date, please contact the instructor.

Submissions:
  The first submission requires preparation of the assigned tax return to the point indicated in the problem handout, which is generally more or less the point where the taxpayer's(s') adjusted gross income (AGI) is determined. (Note, however, that some entries required for the second part may result in changes to that AGI.) The second submission requires preparation of a complete return (including the part previously submitted).
  For each submission, it is not necessary to submit all of the pages, forms, schedules, etc., that the program produces - which can be an astonishing number. SUBMIT:

1. All official forms that would normally be filed
   

2. All supporting forms, worksheets, etc., that include initial entries (i.e. where the information that was taken from the problem statement is initially recorded - that does not mean the "interview" questions/answers if that method is used). These forms should enable the instructor to trace back any unusual results to the initial entry point

If you believe that some additional information or explanation is required (not for the IRS, but for this course), please print that on a "worksheet" or otherwise separate page.

Submission Format:
  Each submission should include:

1. A cover page with the submitting student's name, the name of the taxpayer(s) in the problem, and the name of the preparation program used, and the submission date.
   

2. All forms, etc., mentioned above. The official forms should be in the IRS-required filing order (indicated in the top right corner of each form). Supporting worksheets, etc., should be placed immediately behind the supported form.
   
3. Any written additional information, explanation, etc., should be placed between the cover page and the first official form. Those items should include specific reference to the form(s) and line(s) to which they refer.

The Project Data
  There will be five or six distinct project data sets (problems) distributed. That means that more than one student will be working with any particular data set. Which student(s) receive which data set will be essentially random and arbitrary, but recorded. Please do not exchange problems so that you and a friend have the same problem.

The Preparation Process
  It would be silly for the instructor to forbid students to discuss the problem(s) among themselves or with others. (An "administrative" consideration not unlike some faced by tax administrators.) Therefore, the instructor has no objection to (or limitation on) students talking with other students, or non-students, concerning portions of her or his problem. However, since this is an "individual" assignment, each student MUST make her or his own decisions concerning the treatment of each particular item and MUST individually do the data entry. Obviously, each student is responsible for whatever is on his or her submissions. In addition to being appropriate for this course, that is more like what happens in "the real world" - persons preparing returns talk to others who may know more (or less) about taxes or preparing returns.
  Most tax return preparation programs allow data to be entered either (1) by responding to questions ("interview" mode), or (2) by direct entry on forms and worksheets. Students may wish to try some of both methods. However, the instructor believes that the direct entry method is better. First, that requires deciding which form, etc., is appropriate for any entry (the program may require initial entries on worksheets or supporting forms). With the "interview" method, the program makes those decision. Second, what normally happens in an accounting firm is that the client answers the "interview" questions, then a clerical worker transfers those answers to the preparation program. The professional only sees the final forms and schedules, and compares those results to the client's initial answers. If the professional has no independent knowledge about where information should be entered, she or he cannot really determine if the decisions made by the program are correct. Besides, the instructor finds going through the "interview" method wastes time because one is often required to respond to questions that are not relevant to the return being prepared. In addition, professionals (which students in this course soon will be) are expected to supervise the clerical workers doing the initial entries. How can a supervisor be effective when she/he has no idea how the supervisee should do his/her work?