Preface xiii Ethics, Professional Responsibilities, and Federal Tax Procedures 1 Treasury Department Circular 230 1 Liability as a Tax Preparer 3 Regulation of Accountants 5 Accountants' Liability 6 Tax Preparer Penalties 9 Taxpayer Penalties 11 Sources of Tax Authority and Research 13 Tax Practice and Procedure 14 Compliance Responsibilities 15 Contracts 17 Contracts: Offer and Acceptance 17 Contracts: Consideration 20 Writing and Records 21 Contracts: Defenses to Formation 23 Contracts: Discharge of Performance 26 Issues of Passage of Title and Risk Loss 29 Formulas for Damage 32 Sales 35 Agency 38 Types of Agency Relationships and Creation 38 Duties of Agents and Principals 39 Terminating Agent's Authority 40 Liability of Agents and Principals 41 Debtor-Credit Relationships 43 Suretyship: Introduction, Creation, and Types 43 Rights of Sureties 44 Defenses of Sureties 45 Cosureties 46 Article 9 UCC Secured Transactions 47 Collateral 47 Security Agreement 48 Attachment and Perfection 49 Priorities in Security Interests 51 Rights of Secured Parties and Debtors 53 Bankruptcy and Insolvency 54 Voluntary Filing--Chapter 7 54 Involuntary Filing--Chapter 7 55 Business Reorganizations--Chapter 11 56 Repayment Plans--Chapter 13 58 Alternatives to Bankruptcy 59 Powers of Bankruptcy Trustee 60 Distribution of Debtor's Estate 62 Denial of Discharge 66 Federal Securities Regulation 67 Civil Liability Provisions: Sec. 11 of 1933 Securities Act 67 Civil Liability Provisions: Sec. 10(b) of 1934 Securities Exchange Act 71 Civil Liability Provisions: Sec. 18(a) of 1934 Securities Exchange Act 75 Criminal Securities Law Provisions 79 Employment Tax 80 Federal Insurance Contributions Act (FICA) 80 Federal Unemployment Tax Act (FUTA) 81 Selection and Formation of a Business Entity 83 Partnership Characteristics 83 Limited Liability Arrangements 90 Corporations 93 Promoters 96 Directors and Officers 97 Property Transactions 101 Realized Gain or Loss 101 Taxation of Gains and Losses 103 Related-Taxpayer Transactions 104 Special Transactions 105 Sec. 1245 Depreciation Recapture 107 Federal Taxation of Individuals 108 Individual Income Tax 108 Gross Income 110 Interest 112 Taxation of Income from Business Entities 115 Personal and Dependency Exemptions 135 Filing Status 137 Personal Tax Credits 140 Child Tax Credit 144 Accounting Method 146 Depreciation 147 Federal Gift Tax and Trusts 151 Property Received by Inheritance or Gift 154 Trusts 156 Computing Taxable Income of Trusts 159 Corporate Taxation 161 Corporate Income Tax 161 Computing Corporate Income Tax 163 Supplemental Tax Schedules 169 Accumulated Earnings Tax 171 Affiliated Corporation Transactions 172 Nonliquidating Distributions to Shareholders 173 Corporate Complete Liquidation 175 Corporate Reorganizations 176 Section 1244 Stock 177 S Corporations 178 Foreign Tax Credit 186 Family and Medical Leave Credit 186 Partnership Taxation 187 Formation of Partnerships 187 Taxation of Partnerships 191 Distributions 193 Sale of Partnership Interest 195 Termination 196 Index 197.