This program primarily covers the principles of federal income taxation as they relate to individuals. The material has been organized and arranged in a format that is comparable to Pages 1 and 2 of Form 1040, with an expanded discussion of those areas that branch out to the more detailed schedules that accompany the basic form. The material also is designed to reinforce understanding of the conceptual framework of the individual federal income tax scheme and to go beyond the mechanical aspects of compliance. The textbook discusses certain provisions of the Internal Revenue Code of 1986 (IRC), including amendments made by numerous subsequent tax acts, including the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA); the Job Creation and Worker Assistance Act of 2002 (JCWAA); the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA); the Working Families Tax Relief Act of 2004 (WFTRA); the American Jobs Creation Act of 2004 (AJCA); the Energy Tax Incentives Act of 2005; the Katrina Emergency Tax Relief Act of 2005; the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA); the Pension Protection Act of 2006 (PPA); the Tax Relief and Health Care Act of 2006 (TRHCA); the Small Business and Work Opportunity Tax Act of 2007 (SBWOTA); the Mortgage Forgiveness Debt Relief Act of 2007; the Economic Stimulus Act of 2008; the Heroes Earnings Assistance and Relief Act of 2008 (HEART); the Food, Conservation and Energy Act of 2008 (including the Heartland, Habitat; Harvest, and Horticulture Act of 2008); the Housing and Economic Recovery Act of 2008; the Emergency Economic Stabilization Act of 2008 (EESA); the Worker, Retiree, and Employer Recovery Act of 2008 (PL 110-485) (WRERA); and the American Recovery and Reinvestment Act of 2009 (PL 111-5) (ARRA).

Use of Materials

Audio or DVD
The user should begin by watching the DVD segment or listening to the audio CD for the chapter before reading the text. The user may wish to make notes of the most important concepts and any terms that are new. Next, the user should review the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. It may be helpful to highlight important material and/or to make additional notes. Next, the user should complete the study questions at the end of the chapter and review the answers. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished watching the DVD or listening to the CDs and reading the text, s/he may wish to review her/his notes and any sections of the text or DVD that were difficult. When the user is ready, s/he should complete the quizzer. Reviewing notes periodically will increase retention of the material.

Online
The user should follow the procedures discussed above. After the user has studied each chapter, s/he should click on the link at the left to complete the interactive study questions. When the user has finished reading the text, s/he may wish to review her/his notes and any sections that were difficult. When the user is ready, s/he should click on the link to the left to complete the quizzer. The user's CPE certificate will be provided immediately upon successful completion of the quizzer.

Software
The user should follow the procedures discussed above. As the user studies each chapter, s/he should complete the interactive study questions that appear in the lower panel of the screen. When the user has finished reading the text and working through the study questions, s/he may wish to review her/his notes and any sections that were difficult. When the user is ready, s/he should click on the link at the far left to complete the quizzer. The user should email her/his quizzer statistics using the quizzer submission link in the software and the user's CPE certificate will be mailed to her/him.

Chapter 1 considers basic principles of gross income and the general filing requirements for an individual taxpayer.

Chapter 2 provides in-depth coverage of what is and what is not included in the gross income of an individual taxpayer, as well as an introduction to some of the tax consequences of personal bankruptcy.

Chapter 3 focuses on the gross income and related allowable deductions of a trade or business that are properly reported on Form 1040, Schedule C.

Chapter 4 examines gains and losses from the disposition of property that are properly reported on Form 1040, Schedule D.

Chapter 5 addresses gross income and allowable deductions for royalty activities, real estate rentals, and certain items flowing from partnerships, S corporations, estates and trusts to the individual partners, shareholders and beneficiaries on their respective Schedule K-1 forms, properly reported on Form 1040, Schedule E, including substantive coverage of the passive activity loss rules.

Chapter 6 explores other types of income, focusing primarily on farm income and expenses, which are properly reported on Form 1040, Schedule F.

Chapter 7 explains the adjustments to income, or deductions claimed above-the-line, such as contributions to various types of individual retirement arrangements, educator's expenses, student loan interest, certain expenses of self-employed individuals, and the domestic production activities deduction.

Chapter 8 takes a look at deductions from adjusted gross income, or deductions claimed below-the-line, such as the standard deduction and the itemized deductions that are reported on Form 1040, Schedule A.

Chapter 9 explores the income tax computation, including the new tax rate schedules, as well as the marriage penalty and the kiddie tax.

Chapter 10 provides coverage of the tax credits that can reduce the amount of tax directly on a dollar-for-dollar basis, such as the education credits, the residential energy credits, the child tax credit, and the investment credit.

Chapter 11 considers other taxes that are included in the total tax liability of an individual taxpayer, primarily focusing on the alternative minimum tax and the self-employment tax.

Chapter 12 explains the Tax Payments section of Form 1040, including withholding, estimated tax payments, and the earned income credit.

Chapter 13 provides a comprehensive examination of the civil and criminal penalties that may be imposed on taxpayers and tax return preparers, including a number of provisions designed to shut down abusive tax shelters.

Chapter 14 takes a look at the proper procedures for extending a return, amending a return, and filing a claim for refund.

The Appendix explains how to obtain the numerous tax forms that may be used for the 2009 tax year.

• Discuss the general filing requirements for an individual taxpayer, including filing status and exemptions

• Distinguish between those income items that should be included in and excluded from the gross income of an individual taxpayer

• Explain how to report income from a trade or business activity and the ordinary, necessary, and reasonable expenses incurred in the production of such income generally allowable as deductions against such income

• Determine the tax consequences and comply with the proper reporting requirements for the disposition of property

• Explain how to report gross income and allowable deductions from royalty activities, real estate rentals, and items flowing from the Schedules K-1 of partnerships, S corporations, estates and trusts

• Report farm income or loss and other miscellaneous income items

• Explain how to report those items classified as adjustments to income, or above-the-line deductions

• Explain how to report those items classified as deductions from adjusted gross income, or below-the-line deductions

• Explain how to accurately calculate the individual income tax, including any portion attributable to the kiddie tax

• Determine and apply both refundable and nonrefundable income tax credits, including the education credits, the residential energy credits, the child tax credit, and the investment credit

• Explain how to determine and report alternative minimum tax (AMT), self-employment tax, and recapture taxes

• Discuss the reporting of tax payments, including withholding, estimated taxes, and the earned income credit

• Discuss the civil and criminal penalties that may be imposed on taxpayers and tax return preparers

• Explain how to extend the time to file an individual taxpayer's tax return, file an amended individual tax return, and apply for a refund of overpaid income taxes

Edward K. Zollars, CPA, is a partner in the firm of Thomas, and Zollars, CPAs, in Phoenix, Arizona. A former member of the AICPA Tax Section Tax Technology Committee, Mr. Zollars specializes in individual and business tax planning, as well as tax technology. He has been an expert speaker at numerous AICPA Tax Section meetings and has made presentations at the AICPA National Conference on Federal Taxes. (Contributing Author)

John L. Norman, Jr., JD, is an attorney in private practice in Washington, D.C., where he specializes in closely held business organizations, as well as estate and financial planning. He is the former National Director of Taxation for the accounting firm Pannell Kerr Forster, and the former chair of PKF's International Tax Committee. He is also a member of the International Tax Planning Association. Previously, he was the Director of Tax Policy for Potomac Electric Power Company. He also taught at Keller Graduate School of Management, College of William and Mary, and George Washington University. Mr. Norman is a noted speaker and author of several publications in the area of federal taxation and a regular contributor to Bisk Education's CPE Network. (Contributing Author/Speaker)

E. Lynn Nichols, CPA (PA), a practicing CPA for more than 35 years, is the founder of Mares Nichols CPE, Inc., a developer of continuing education programs and practice aids for CPAs. He is a regular contributor to Bisk Education's CPE Network, a volunteer member of the tax division of the AICPA, a member of the Board of Visitors of the School of Accounting in the College of Business of the University of Oklahoma and a former member of the Editorial Board of the Ohio CPA Journal. In 2005, Mr. Nichols was honored by the Ohio Society of CPAs with its Gold Medal for Meritorious Service to the Accounting Profession. Mr. Nichols serves as an advisor to CPA firms across the U.S. on matters of federal income taxation, litigation services, and IRS procedures. He has authored more than 20 highly-rated tax CPE programs and his Current Federal Tax Developments program is always among the highest rated in the nation. (Speaker)