Interview with Dr. Raquel Alexander

Today, I'm thrilled to announce that I am publishing an interview with Dr. Raquel Alexander, an assistant tax professor at the University of Kansas. Raquel earned her Ph.D. in 2001 at the University of Texas-Austin.  Prior to that, she earned a BS in Accounting at the University of Kansas, a Masters in Taxation at Arizona State University and worked as a tax consultant in the Dallas, Texas and Phoenix, Arizona offices at KPMG.  She is a licensed CPA in Kansas.  Raquel's award-winning research has lead to reform in the college savings industry, and has been requested by policy makers and regulators such as the SEC, the MSRB, FINRA, and the White House.   Raquel has been quoted or cited in numerous popular press publications including Business Week, the International Herald Tribune, The Washington Post, the New York Times, and the Wall Street Journal.

 

How did you become interested in tax?  What inspired you to have the goalof changing tax law to be more equitable and convenient?  

My first tax class as an undergraduate at the University of Kansaslit the spark. Unlike other areas of accounting curriculum, tax presented an opportunity to work with the law and legal precedents while serving as a client advocate.  The complexity of the tax code creates interesting problems for classwork, but in practiceI saw that this complexity has real costs to taxpayers, business owners, employees and savers.  

Taxes won't be going away - they are necessary to operate the government;  butthey can certainly be structured to be more equitable, more conducive to growth and more convenient for taxpayers.  Complexity arises because we are now using the tax code to administer social and economic development programs (with mixed efficacy).  Thereare a number of excellent proposals to restructure the tax code that are currently being debated.  The recent protests at Apple Stores andat U2 Concerts showthat young people are starting to pay attention to inequity in the tax system. 

On the convenience side, I see merit in sending the IRS taxpayers a preliminarytax return with the information reported by employers and financial institutions already filled in.  The taxpayer could choose to file the return or change it to include additional income and deductions.   The IRS has the information and should push it outto reduce compliance costs.  It has been working in California and other countries for nearly a decade.

Among other things, you have done extensive research on college savingsplans. Can you explain what a 529 college savings plan is, and the benefits it has to offer?  

It might be easiest to think of 529 plans as college IRA accounts - the accountsare invested in mutual funds or CDs with tax-free growth.  Distributions are also tax-free when used for qualified higher educational expenses (such as tuition, fees, books, computers, and room and board).  Many states allow income tax deductions upon contribution(e.g., CO allows a $1 for $1 unlimited deduction for contributions).   A great place to learn about all the perks and unique benefits of 529 plans is here: www.savingforcollege.com. 

In the tax research graduate level course you teach, you have incorporatedservice learning into the curriculum.  Can you explain what this entails and why you chose to include such a unique approach? 

Service learningis an opportunity to provide students with meaningful, impactful ways to apply the curriculum while serving others.  In class, we work hard to understand the tax laws relevantto our clients and then we provide them with advice on their unique tax needs.  I am most proud of KU students’ work to help Hurricane Katrina victims and United Way affiliates throughout the state.  A former tax student, Taylor Petty, recently gave U.S. Congressionaltestimony about his tax service learning project to develop the financial literacy curriculum for the KS high schools.  Every semester we have different clients and it is thrilling to see the students in action!  

What advice would you give to young people wanting to pursue a career intax accounting? 

In college, take as many tax and finance classes as possible.  Once working,stay current in the tax law, pay attention to business trends, and be ready to specialize in a new field within tax.  There are many accountants who made millions working on the Research and Development Credit when the law was first enacted.  New tax law createsnew opportunities for tax professionals. 

What’s the first thing you would do if you won $10,000,000 (other than paytaxes)?   

Open a 529 plan, of course.  Then go South By Southwestin Austin Texas and have mango-poblano chile quesadillas and margaritas at the Hula Hut.

Where do you find inspiration?   

Thereis an old saying “it takes a village to raise a child” but it also takes a village to raise a professor.  I have learned so much from my faculty peers but I have learned the most from the students and they make me excited to come to work every day.  The students’interests led to the service learning course (and to showing Daily Show tax clips in class.

What’s the difference between living and existing?    

Joe– you ask some tough questions!  It is probably the same as the difference between being a tax student and taking a tax class.    

Thanks for the interview!  Rock Chalk!  Raquel