Teaching the Introductory Tax Course: A Template of the Federal Income Tax Formula, Taxpayer Activities, and Taxpayer Entities .

Abstract In this article, we describe an alternative method of teaching introductory taxation that refines the Jones and Duncan (1995) paradigm. These refinements in the conceptual framework are necessary, we believe, in order for it to be successfully implemented. Our alternative method draws upon the research in human information processing to create a three-dimensional framework of taxation. These three dimensions include: (1) the federal income tax (FIT formula, (2) taxpayer activities, and (3) taxpayer entities. Using this method, we begin by providing a working knowledge of the elements in each dimension. We introduce the transactions that comprise a taxpayer activity and describe the general tax rules for those transactions. These general tax rules are then refined by applying, the transactions to specific entities. This process is repeated for each of the remaining taxpayer activities. Our experience suggests that this three-dimensional framework enables students to better understand, remember, and apply tax knowledge.