I hope that you’re enjoying the long holiday weekend! This week’s pair of sessions will be dedicated to my final advanced accounting topic of the semester: sleazy tax shelters!
In fact, our topic is so advanced that it cannot possibly be covered in a single class session. So Episode 1, on Wednesday, will cover the “nuts and bolts” construction of a tax shelter. And Episode 2, on Friday, will cover my own personal experience with the tax shelter that we’ll construct on Wednesday.
Although you are always welcome to attend any of the three daily sessions of our capstone course, the unique “two episode” nature of this week’s session might make it worthwhile for you to attend a specific session on both dates.
In other words, if you choose to attend the 11:30 am session on Wednesday, please try to attend the 11:30 am session on Friday. Likewise, 12:30 pm session attendees on Wednesday should try to attend the 12:30 pm session on Friday, and 1:30 pm attendees on Wednesday should try for the 1:30 pm Friday session as well.
So how shall we prepare for our sessions? In advance of our Wednesday session, please read a brief article about Connecticut’s estate (i.e. “death”) tax. Although you should read the entire article, please focus on paragraphs 3 through 6, which fall under the section heading “Connecticut.”
Then, in advance of our Friday session, please read a pair of brief articles about tax shelter prosecutions at KPMG and BDO Seidman. The first article, published in 2002, describes the launch of a pair of federal prosecutions. And the second article, published a few months ago, describes the resolution of one of the prosecutions.
Although we have completed our set of 25 quizzes for the semester, I have decided to offer a pair of extra credit quizzes next week. The quizzes will adhere to our normal quiz practices, and for each of the questions that you answer correctly, I will add a single point to your final course grade.
By the way, I uploaded copies of Anne Lipsitz’s documents to our Virtual Library. You may wish to review them before our quiz on Wednesday!
And what of our term project? Your next submission is due on Friday evening, April 25th at 11:59 pm. Details are listed in the Project 4 page of our course blog. You can access the page by clicking on the Project 4 link under the masthead of our blog’s home page.
The following “hints” may be helpful as well:
1. Although the heart of the previous Project 3 exercise was the Investment Value section, some of the student groups only placed limited emphasis on the components of that section. Please keep in mind that a full set of financial statements, accompanied by financial ratios and some nonfinancial ratios as well, must be prepared for the Project 4 and 5 submissions.
2. Although I added a note about Enterprise Risk Management at the bottom of the Project 4 web page, we will not focus on risk (except for the inclusion of a “brief sketch” in Project 4) until the fifth and final project submission. Please focus your Project 4 submission on the three questions that define each of the five sections of the business plan, and on referencing each of your answers to the financial statements.
3. Please use our Google Drive software platform to create your multi-media presentation for Project 4. Instead of sending me your document(s) via email messages, please upload all of your documents to Google Drive and send me a Gmail message to confirm that you have done so. If you have misplaced an email message that I sent several weeks ago about your team’s dedicated online file box, please let me know … I shall send you another message immediately.