H&R BLOCK

Circular 230 - ans-Regulations governing the practice of attorneys, certified public accountants, enrolled agents, enrolled actuaries, and appraisers before the IRS. Disclosure - ans-The release of tax information by an IRS employee. Due Diligence - ans-Requirements that tax professionals must follow when preparing income tax returns. Noncompliance - ans-Failure or refusal to comply with the tax code. Privilege - ans-Protection from being required to disclose confident...

A taxpayer should include which of the following when figuring their federal gross income? - ans-Gifts and inheritances. Life insurance payments, if paid by reason of the death of the insured. Meals and lodging provided for the convenience of the employer Prizes and awards. To avoid the risk of penalties, tax preparers must abide by rules regarding preparer tax identification numbers (PTINs). Which of the following statements is TRUE regarding PTINs? - ans-A)A PTIN is required semi-a...

Describe the purpose of the CSO - ans-To provide help & inspire confidence in our clients & communities everywhere. Explain the CSO structure, our teams and commonly asked questions? - ans-Care to provide help & inspire confidence; serve w/ transparency; win by making it easy. Escalation teams - ans-Escalations agents research and resolve escalated cases submitted by Tier 1 agents. People Center - ans-provides human resource support to H&R Block associates. Emerald Card t...

What income reporting form should an independent contractor sometimes receive from the person who paid him for his services? - ans-Form 1099-MISC (15.6) Schedule C, Line F asks for the accounting method used in the business. What is the difference between the cash method and the accrual method of accounting? - ans-• Under the accrual method, total sales and total charges for services are included in income even though payment may be received in another tax year. • Under the cash m...

What is the Difference between earned income and unearned income? - ans-Earned income is received for services performed. Examples are wages commissions, tips and generally farming and other business income . Taxable income other than that received for services performed. Unearned Income includes money received ro the investment of money or other property, such as interest, dividends, and royalties. It also includes pensions alimony, unemployment compensation and other income that is not earn...

tax - ans-payment to support cost of government taxpayer - ans-any person or organization required by law to pay a tax to a governmental authority incidence - ans-the ultimate economic burden represented by the tax jurisdiction - ans-the right of the governement to levy tax on a specific person or organization tax base - ans-an item, occurrence, transaction, or activity with respect to which a tax is levied formula for tax - ans-Tax(T)= Rate(r) X Base(B) earma...

What are the three Accounting periods? - ans--Calendar yr. -Fiscal year (Ending last day of the month, other than December) -52/53 week What is the method for recognizing income under the accrual method? - ans-All events have occurred and in reasonable amount. When is the all events test met, assuming it can be reasonably determined? - ans-On the earliest of: -Payment for task due from customer -Business receives payment -When completing task required to earn income Busine...

Which of the following is a requirement for all taxpayers who want to claim the EIC? Live in the U.S. for more than half a year. Have a valid social security number. Have a qualifying child dependent. Have AGI less than $21,430 ($27,380 MFJ). - ans-Have a valid social security number. A combined due diligence penalty of $2,180 would indicate a penalty for which of the following? EIC, CTC/ODC/ACTC, and head of household. EIC, AOTC, and CTC/ODC/ACTC. EIC, AOTC, CTC/ODC/ACTC, and h...

What is the Difference between earned income and unearned income? - ans-Earned income is received for services performed. Examples are wages commissions, tips and generally farming and other business income . Taxable income other than that received for services performed. Unearned Income includes money received ro the investment of money or other property, such as interest, dividends, and royalties. It also includes pensions alimony, unemployment compensation and other income that is not earne...

Which of the following is an example of a casualty and/or theft loss? Termite damage Misplaced property Damage or loss from a terrorist attack Property broken through ordinary use - ANSWER Damage or loss from a terrorist attack