Auto Financial, Inc.: Utilizing Tax Incentives to Illustrate the Implementation of Tax Provisions to Business

• In Event: Reception with ELS Posters
  In Poster Session: ELS Poster Session and Friday Reception

Abstract

The primary objective of this case is to illustrate the application of the Internal Revenue Code to an actual business scenario. Specifically, students will see the implementation of employment tax credits into the payroll system and the utilization of tax incentives to reduce tax expense. Students must use critical thinking skills and gain practical experience calculating the value of tax exemptions and tax credits. Secondary benefits include researching tax issues. The case is targeted at business students in a junior level federal taxation accounting course and/or Masters in Taxation/Accountancy students in an introductory taxation course. After seeing the real-world application of a tax rule, students are better equipped to learn specific tax provisions over the course of the quarter/semester by understanding how these provisions may apply. The case is designed to be taught in 1-2 class hours.

Authors

• Andrew M. Brajcich, Gonzaga University

• Sara R. Melendy, Gonzaga University