5/9/26, 8:33 AM H&R Block Income Tax Course EXAM (updated 2026) Questions & Answers | With 100% Correct Answers graded A+ Guaranteed S…
H&R Block Income Tax Course EXAM (updated
2026) Questions & Answers | With 100% Correct
Answers graded A+ Guaranteed Success!!
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Terms in this set (566)
Circular 230 Regulations governing the practice of attorneys,
certified public accountants, enrolled agents,
enrolled actuaries, and appraisers before the IRS.
Disclosure The release of tax information by an IRS employee.
Due Diligence Requirements that tax professionals must follow
when preparing income tax returns.
Noncompliance Failure or refusal to comply with the tax code.
Privilege Protection from being required to disclose
confidential communications between two parties,
such as attorney and client.
Estimated Tax The amount of tax a taxpayer expects to owe for
the year after subtracting expected amounts
withheld and certain refundable credits.
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Estimated Tax Voucher A statement by an individual of (1) the amount of
income tax he estimates he will incur during the
current taxable year on income that is not subject
to withholding, (2) the excess amount over that
withheld on income which is subject to
withholding, and (3) his estimated self-employment
tax.
Exemption from Withholding Status claimed on Form W-4 directing the
employer not to withhold federal income taxes
from the employee.
Underpayment Penalty If a taxpayer did not pay enough tax on a timely
basis during the year, he may be required to pay an
underpayment penalty.
Withholding Allowances An increase by which income tax withholding on
certain income is reduced.
Two Ways to Pay as You Go Withholding and Estimated Tax Payments
Form W-4 Employee's Withholding Allowance Certificate
Form 8815 Exclusion of Interest From Series EE and I U.S.
Savings Bonds Issued After 1989
Form 2210 Underpayment of Estimated Tax by Individuals,
Estates, and Trusts
Form 4868 Application for Automatic Extension of Time To File
U.S. Individual Income Tax Return
Form 8888 Allocation of Refund
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,5/9/26, 8:34 AM H&R Block Income Tax Course EXAM (updated 2026) Questions & Answers | With 100% Correct Answers graded A+ Guaranteed S…
Form 9465 Installment Agreement Request
Amended Return A tax return filed on Form 1040X after the original
return has been filed.
Closed Year A tax year for which the statute of limitations has
expired.
Open Year A taxable year for which the statute of limitations
has not yet expired.
Failure-to-File Penalty Generally 5% for each month or part of a month
the return is late, but not more than 25% of the tax
not paid.
Failure to File Taxpayer fails to file the return by the due date,
and there is a balance due.
Failure to Pay Taxpayer fails to pay the tax owed by the due date.
Failure-to-Pay Penalty 0.5% of the unpaid taxes for each month or part of
a month after the due date, but not more than 25%.
Negligence or Intentional Disregard Taxpayer shows negligence or disregard of the
rules or regulations causing an underpayment.
Negligence-or-Intentional-Disregard 20% of the underpayment.
Penalty
Substantial Understatment Taxpayer understates their tax by the larger of
$5,000 or 10% of the correct tax.
Substantial-Understatement Penalty 20% of the underpayment.
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Form 1040X Amended U.S. Individual Income Tax Return
When can an amended return be Within three years of the date the original return
filed? was filed, or within two years of the date the tax
was paid, whichever is later.
Can the 1040X be e-filed? No.
Household Employee An individual who performs nonbusiness services
in a taxpayer's home.
Active Income and Losses Those for which a taxpayer performs services.
Partnership A form of business in which two or more persons
join their money and skills in conducting the
business as co-owners.
Passive Income and Losses Those from business activities in which the taxpayer
does not materially participate, and all rental
activities.
Portfolio Income and Losses Those from such sources as dividends, interest,
capital gains and losses, and royalties.
Rental Income Income received by the taxpayer for allowing
another person's use of the taxpayer's property.
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H&R Block Income Tax Course EXAM (updated
2026) Questions & Answers | With 100% Correct
Answers graded A+ Guaranteed Success!!
Save Groups
Terms in this set (566)
Circular 230 Regulations governing the practice of attorneys,
certified public accountants, enrolled agents,
enrolled actuaries, and appraisers before the IRS.
Disclosure The release of tax information by an IRS employee.
Due Diligence Requirements that tax professionals must follow
when preparing income tax returns.
Noncompliance Failure or refusal to comply with the tax code.
Privilege Protection from being required to disclose
confidential communications between two parties,
such as attorney and client.
Estimated Tax The amount of tax a taxpayer expects to owe for
the year after subtracting expected amounts
withheld and certain refundable credits.
https://quizlet.com/1178318125/hr-block-income-tax-course-exam-updated-2026-questions-answers-with-100-correct-answers-graded-a-guaranteed-… 1/73
,5/9/26, 8:34 AM H&R Block Income Tax Course EXAM (updated 2026) Questions & Answers | With 100% Correct Answers graded A+ Guaranteed S…
Estimated Tax Voucher A statement by an individual of (1) the amount of
income tax he estimates he will incur during the
current taxable year on income that is not subject
to withholding, (2) the excess amount over that
withheld on income which is subject to
withholding, and (3) his estimated self-employment
tax.
Exemption from Withholding Status claimed on Form W-4 directing the
employer not to withhold federal income taxes
from the employee.
Underpayment Penalty If a taxpayer did not pay enough tax on a timely
basis during the year, he may be required to pay an
underpayment penalty.
Withholding Allowances An increase by which income tax withholding on
certain income is reduced.
Two Ways to Pay as You Go Withholding and Estimated Tax Payments
Form W-4 Employee's Withholding Allowance Certificate
Form 8815 Exclusion of Interest From Series EE and I U.S.
Savings Bonds Issued After 1989
Form 2210 Underpayment of Estimated Tax by Individuals,
Estates, and Trusts
Form 4868 Application for Automatic Extension of Time To File
U.S. Individual Income Tax Return
Form 8888 Allocation of Refund
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,5/9/26, 8:34 AM H&R Block Income Tax Course EXAM (updated 2026) Questions & Answers | With 100% Correct Answers graded A+ Guaranteed S…
Form 9465 Installment Agreement Request
Amended Return A tax return filed on Form 1040X after the original
return has been filed.
Closed Year A tax year for which the statute of limitations has
expired.
Open Year A taxable year for which the statute of limitations
has not yet expired.
Failure-to-File Penalty Generally 5% for each month or part of a month
the return is late, but not more than 25% of the tax
not paid.
Failure to File Taxpayer fails to file the return by the due date,
and there is a balance due.
Failure to Pay Taxpayer fails to pay the tax owed by the due date.
Failure-to-Pay Penalty 0.5% of the unpaid taxes for each month or part of
a month after the due date, but not more than 25%.
Negligence or Intentional Disregard Taxpayer shows negligence or disregard of the
rules or regulations causing an underpayment.
Negligence-or-Intentional-Disregard 20% of the underpayment.
Penalty
Substantial Understatment Taxpayer understates their tax by the larger of
$5,000 or 10% of the correct tax.
Substantial-Understatement Penalty 20% of the underpayment.
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, 5/9/26, 8:34 AM H&R Block Income Tax Course EXAM (updated 2026) Questions & Answers | With 100% Correct Answers graded A+ Guaranteed S…
Form 1040X Amended U.S. Individual Income Tax Return
When can an amended return be Within three years of the date the original return
filed? was filed, or within two years of the date the tax
was paid, whichever is later.
Can the 1040X be e-filed? No.
Household Employee An individual who performs nonbusiness services
in a taxpayer's home.
Active Income and Losses Those for which a taxpayer performs services.
Partnership A form of business in which two or more persons
join their money and skills in conducting the
business as co-owners.
Passive Income and Losses Those from business activities in which the taxpayer
does not materially participate, and all rental
activities.
Portfolio Income and Losses Those from such sources as dividends, interest,
capital gains and losses, and royalties.
Rental Income Income received by the taxpayer for allowing
another person's use of the taxpayer's property.
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