Lessons from federal Tax Court.

• Author: Wright, Gail E.
• Position: For teaching tax law

MOST UNDERGRADUATE ACCOUNTING PROgrams include a basic federal income tax course with some coverage of the fundamentals of tax research. Students receive an introduction to statutory, judicial, and administrative sources of tax law and some practice in the fundamentals of tax research. Opportunities in advanced research, study of tax law development, and exploration of the judicial process are offered only at the graduate level of study, often after students have chosen other career paths in accounting.

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Faculty seeking to stimulate interest in tax study and careers in tax practice can facilitate visits to federal tax court, where students can participate in the judicial process as courtroom observers. Students attending tax court sessions observe court players as they present, debate, and argue taxpayer returns, the Internal Revenue Code, and application of tax law. Students hear firsthand taxpayers' frustrations as they struggle with the complexities and sometimes the inequities of tax law, and they have the opportunity to observe judges who direct court proceedings. In addition to providing more information about tax disputes and applications, the experience can also change students' perspectives on the foundation, equity, and enforcement of tax law.

This column provides a court trip primer for educators interested in complementing or supplementing an existing tax course and for practitioners seeking enrichment for internship programs. In addition to the pedagogical aspects linked to tax education, it includes a discussion of the logistics of arranging a U.S. Tax Court visit and increasing the probability of hearing a regular case or a simplified small case procedure. Timing, court locations, class size, and flexibility all play an important part in the success of a class or program offering.

Preparation and Lessons

Traditional undergraduate tax courses introduce students to the world of federal taxation, focusing on the computation of taxable income for individuals and, for institutions offering a second tax course, the taxation of business entities. Topics and assignments emphasize tax compliance, identification of income and deductions, and perhaps preparation of a basic individual or business tax return. Although many professors discuss the authoritative structure of tax law, accounting students tend to gravitate to more concrete and definitive assignments, focusing on quick applications and generation of a final product. Tax study becomes an extension of financial accounting, with tax law replacing generally accepted accounting principles and tax returns replacing financial statements. Incorporating a tax court experience is an opportunity to break up the focus on tax law application...