UNIVERSITY STUDENTS PREPARE TO COMPETE IN SEVENTH ANNUAL ARTHUR ANDERSEN TAX CHALLENGE

Teams will come from more than 100 colleges and universities across the country on October 23­24, 1998, to face off at nine regional sites for the start of the seventh annual Arthur Andersen Tax Challenge.

"Tax Challenge attempts to replicate real-life situations and promote the use of students' teamwork in identifying workable solutions for a fictitious client," said Howard S. Engle, an Arthur Andersen tax partner and architect of the Tax Challenge. "It gives students a practical, real-world idea of the challenges and rewards of the tax profession."

Tax Challenge is the premier nationwide college and university tax competition. Former team members describe the competition as "the most beneficial educational experience of their college years." Designed to stimulate interest in the field of taxation, Tax Challenge features graduate and undergraduate divisions at both the regional and national level. Teams of up to four students work through a complex hypothetical case study involving Federal tax issues confronting an individual or family that owns a business. The case studies test skills in the following areas: information analysis; identification of data, issues, elections, and alternative tax treatments; and performance of required calculations. The teams must also factor in compensation matters, investments, itemized deductions, and related issues that affect the taxpayer's filing status. At the end of the seven-hour time limit, each team prepares a written report evaluating the client's situation and makes planning recommendations. A panel of judges evaluates the report.