H&R Block Income Tax Course || 100% Accurate Answers.
Circular 230 correct answers Regulations governing the practice of attorneys, certified public
accountants, enrolled agents, enrolled actuaries, and appraisers before the IRS.
Disclosure correct answers The release of tax information by an IRS employee.
Due Diligence correct answers Requirements that tax professionals must follow when preparing
income tax returns.
Noncompliance correct answers Failure or refusal to comply with the tax code.
Privilege correct answers Protection from being required to disclose confidential
communications between two parties, such as attorney and client.
Estimated Tax correct answers The amount of tax a taxpayer expects to owe for the year after
subtracting expected amounts withheld and certain refundable credits.
Estimated Tax Voucher correct answers 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 correct answers Status claimed on Form W-4 directing the
employer not to withhold federal income taxes from the employee.
Underpayment Penalty correct answers 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 correct answers An increase by which income tax withholding on
certain income is reduced.
,Two Ways to Pay as You Go correct answers Withholding and Estimated Tax Payments
Form W-4 correct answers Employee's Withholding Allowance Certificate
Form 8815 correct answers Exclusion of Interest From Series EE and I U.S. Savings Bonds
Issued After 1989
Form 2210 correct answers Underpayment of Estimated Tax by Individuals, Estates, and Trusts
Form 4868 correct answers Application for Automatic Extension of Time To File U.S. Individual
Income Tax Return
Form 8888 correct answers Allocation of Refund
Form 9465 correct answers Installment Agreement Request
Amended Return correct answers A tax return filed on Form 1040X after the original return has
been filed.
Closed Year correct answers A tax year for which the statute of limitations has expired.
Open Year correct answers A taxable year for which the statute of limitations has not yet expired.
Failure-to-File Penalty correct answers 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 correct answers Taxpayer fails to file the return by the due date, and there is a
balance due.
,Failure to Pay correct answers Taxpayer fails to pay the tax owed by the due date.
Failure-to-Pay Penalty correct answers 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 correct answers Taxpayer shows negligence or disregard of
the rules or regulations causing an underpayment.
Negligence-or-Intentional-Disregard Penalty correct answers 20% of the underpayment.
Substantial Understatment correct answers Taxpayer understates their tax by the larger of $5,000
or 10% of the correct tax.
Substantial-Understatement Penalty correct answers 20% of the underpayment.
Form 1040X correct answers Amended U.S. Individual Income Tax Return
When can an amended return be filed? correct answers Within three years of the date the original
return was filed, or within two years of the date the tax was paid, whichever is later.
Can the 1040X be e-filed? correct answers No.
Household Employee correct answers An individual who performs nonbusiness services in a
taxpayer's home.
Active Income and Losses correct answers Those for which a taxpayer performs services.
, Partnership correct answers 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 correct answers Those from business activities in which the taxpayer
does not materially participate, and all rental activities.
Portfolio Income and Losses correct answers Those from such sources as dividends, interest,
capital gains and losses, and royalties.
Rental Income correct answers Income received by the taxpayer for allowing another person's
use of the taxpayer's property.
Royalty correct answers (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
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.
S Corporation correct answers A qualified small business corporation that has elected special tax
treatment under subchapter S of the Internal Revenue Code. S corporations pass income, losses,
and deductions through to shareholders to report on their individual returns.
Trust correct answers A tax entity that distributes all or part of its income to beneficiaries as
instructed by the trust agreement.
Requirements for a Real Estate Professional correct answers 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 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.
Circular 230 correct answers Regulations governing the practice of attorneys, certified public
accountants, enrolled agents, enrolled actuaries, and appraisers before the IRS.
Disclosure correct answers The release of tax information by an IRS employee.
Due Diligence correct answers Requirements that tax professionals must follow when preparing
income tax returns.
Noncompliance correct answers Failure or refusal to comply with the tax code.
Privilege correct answers Protection from being required to disclose confidential
communications between two parties, such as attorney and client.
Estimated Tax correct answers The amount of tax a taxpayer expects to owe for the year after
subtracting expected amounts withheld and certain refundable credits.
Estimated Tax Voucher correct answers 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 correct answers Status claimed on Form W-4 directing the
employer not to withhold federal income taxes from the employee.
Underpayment Penalty correct answers 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 correct answers An increase by which income tax withholding on
certain income is reduced.
,Two Ways to Pay as You Go correct answers Withholding and Estimated Tax Payments
Form W-4 correct answers Employee's Withholding Allowance Certificate
Form 8815 correct answers Exclusion of Interest From Series EE and I U.S. Savings Bonds
Issued After 1989
Form 2210 correct answers Underpayment of Estimated Tax by Individuals, Estates, and Trusts
Form 4868 correct answers Application for Automatic Extension of Time To File U.S. Individual
Income Tax Return
Form 8888 correct answers Allocation of Refund
Form 9465 correct answers Installment Agreement Request
Amended Return correct answers A tax return filed on Form 1040X after the original return has
been filed.
Closed Year correct answers A tax year for which the statute of limitations has expired.
Open Year correct answers A taxable year for which the statute of limitations has not yet expired.
Failure-to-File Penalty correct answers 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 correct answers Taxpayer fails to file the return by the due date, and there is a
balance due.
,Failure to Pay correct answers Taxpayer fails to pay the tax owed by the due date.
Failure-to-Pay Penalty correct answers 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 correct answers Taxpayer shows negligence or disregard of
the rules or regulations causing an underpayment.
Negligence-or-Intentional-Disregard Penalty correct answers 20% of the underpayment.
Substantial Understatment correct answers Taxpayer understates their tax by the larger of $5,000
or 10% of the correct tax.
Substantial-Understatement Penalty correct answers 20% of the underpayment.
Form 1040X correct answers Amended U.S. Individual Income Tax Return
When can an amended return be filed? correct answers Within three years of the date the original
return was filed, or within two years of the date the tax was paid, whichever is later.
Can the 1040X be e-filed? correct answers No.
Household Employee correct answers An individual who performs nonbusiness services in a
taxpayer's home.
Active Income and Losses correct answers Those for which a taxpayer performs services.
, Partnership correct answers 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 correct answers Those from business activities in which the taxpayer
does not materially participate, and all rental activities.
Portfolio Income and Losses correct answers Those from such sources as dividends, interest,
capital gains and losses, and royalties.
Rental Income correct answers Income received by the taxpayer for allowing another person's
use of the taxpayer's property.
Royalty correct answers (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
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.
S Corporation correct answers A qualified small business corporation that has elected special tax
treatment under subchapter S of the Internal Revenue Code. S corporations pass income, losses,
and deductions through to shareholders to report on their individual returns.
Trust correct answers A tax entity that distributes all or part of its income to beneficiaries as
instructed by the trust agreement.
Requirements for a Real Estate Professional correct answers 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 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.
