EUNICE
H&R Block Income Tax Course with 100% sure answers
Terms in this set (566)
Regulations governing the practice of attorneys, certified public accountants,
Circular 230
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.
Protection from being required to disclose confidential communications between
Privilege
two parties, such as attorney and client.
The amount of tax a taxpayer expects to owe for the year after subtracting expected
Estimated Tax
amounts withheld and certain refundable credits.
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)
Estimated Tax Voucher
the excess amount over that withheld on income which is subject to withholding, and
(3) his estimated self-employment tax.
Status claimed on Form W-4 directing the employer not to withhold federal income
Exemption from Withholding
taxes from the employee.
If a taxpayer did not pay enough tax on a timely basis during the year, he may be
Underpayment Penalty
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
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.
Generally 5% for each month or part of a month the return is late, but not more than
Failure-to-File Penalty
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.
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, Failure to Pay Taxpayer fails to pay the tax owed by the due date.
0.5% of the unpaid taxes for each month or part of a month after the due date, but
Failure-to-Pay Penalty
not more than 25%.
Taxpayer shows negligence or disregard of the rules or regulations causing an
Negligence or Intentional Disregard
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.
Form 1040X Amended U.S. Individual Income Tax Return
Within three years of the date the original return was filed, or within two years of the
When can an amended return be filed?
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.
A form of business in which two or more persons join their money and skills in
Partnership
conducting the business as co-owners.
Those from business activities in which the taxpayer does not materially participate,
Passive Income and Losses
and all rental activities.
Those from such sources as dividends, interest, capital gains and losses, and
Portfolio Income and Losses
royalties.
Income received by the taxpayer for allowing another person's use of the taxpayer's
Rental Income
property.
(1) A payment received for the right to exploit a taxpayer's ownership of natural
resources or a taxpayer's literary, musical, or artistic creation. (2) An interest in the oil
Royalty and gas in place that entitles the holder to a specified fraction, in kind or in value, of
the total production from the property, free of any expenses of development and
operation.
A qualified small business corporation that has elected special tax treatment under
S Corporation subchapter S of the Internal Revenue Code. S corporations pass income, losses, and
deductions through to shareholders to report on their individual returns.
A tax entity that distributes all or part of its income to beneficiaries as instructed by
Trust
the trust agreement.
1. More than half of the personal services performed by the taxpayer in all trades or
businesses during the tax year were performed in real property trades or businesses
Requirements for a Real Estate Professional in which the taxpayer materially participated.
2. The taxpayer performed more than 750 hours of services during the year in real
property trades or businesses in which the taxpayer materially participated.
Any activity that: Involves the conduct of a trade or business; is conducted in
Trade or Business Activities anticipation of starting a trade or business; Involves research or experimental
expenditures that are deductible under IRS Code 174.
Nonpassive Income Income derived from activities that are not passive.
Types of Nonpassive Income Portfolio income; personal service income; other income.
Includes interest, dividends, annuities, and royalties not derived in the ordinary
Portfolio Income
course of business.
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H&R Block Income Tax Course with 100% sure answers
Terms in this set (566)
Regulations governing the practice of attorneys, certified public accountants,
Circular 230
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.
Protection from being required to disclose confidential communications between
Privilege
two parties, such as attorney and client.
The amount of tax a taxpayer expects to owe for the year after subtracting expected
Estimated Tax
amounts withheld and certain refundable credits.
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)
Estimated Tax Voucher
the excess amount over that withheld on income which is subject to withholding, and
(3) his estimated self-employment tax.
Status claimed on Form W-4 directing the employer not to withhold federal income
Exemption from Withholding
taxes from the employee.
If a taxpayer did not pay enough tax on a timely basis during the year, he may be
Underpayment Penalty
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
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.
Generally 5% for each month or part of a month the return is late, but not more than
Failure-to-File Penalty
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.
1/5
, Failure to Pay Taxpayer fails to pay the tax owed by the due date.
0.5% of the unpaid taxes for each month or part of a month after the due date, but
Failure-to-Pay Penalty
not more than 25%.
Taxpayer shows negligence or disregard of the rules or regulations causing an
Negligence or Intentional Disregard
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.
Form 1040X Amended U.S. Individual Income Tax Return
Within three years of the date the original return was filed, or within two years of the
When can an amended return be filed?
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.
A form of business in which two or more persons join their money and skills in
Partnership
conducting the business as co-owners.
Those from business activities in which the taxpayer does not materially participate,
Passive Income and Losses
and all rental activities.
Those from such sources as dividends, interest, capital gains and losses, and
Portfolio Income and Losses
royalties.
Income received by the taxpayer for allowing another person's use of the taxpayer's
Rental Income
property.
(1) A payment received for the right to exploit a taxpayer's ownership of natural
resources or a taxpayer's literary, musical, or artistic creation. (2) An interest in the oil
Royalty and gas in place that entitles the holder to a specified fraction, in kind or in value, of
the total production from the property, free of any expenses of development and
operation.
A qualified small business corporation that has elected special tax treatment under
S Corporation subchapter S of the Internal Revenue Code. S corporations pass income, losses, and
deductions through to shareholders to report on their individual returns.
A tax entity that distributes all or part of its income to beneficiaries as instructed by
Trust
the trust agreement.
1. More than half of the personal services performed by the taxpayer in all trades or
businesses during the tax year were performed in real property trades or businesses
Requirements for a Real Estate Professional in which the taxpayer materially participated.
2. The taxpayer performed more than 750 hours of services during the year in real
property trades or businesses in which the taxpayer materially participated.
Any activity that: Involves the conduct of a trade or business; is conducted in
Trade or Business Activities anticipation of starting a trade or business; Involves research or experimental
expenditures that are deductible under IRS Code 174.
Nonpassive Income Income derived from activities that are not passive.
Types of Nonpassive Income Portfolio income; personal service income; other income.
Includes interest, dividends, annuities, and royalties not derived in the ordinary
Portfolio Income
course of business.
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