HR BLOCK INCOME TAX COURSE

H&R BLOCK INCOME TAX COURSE

QUESTIONS AND ANSWER S 100%

CORRECT

Question :Circular 230

Correct answer:Regulations governing the practice of

attorneys, certified public accountants, enrolled agents, enrolled actuaries, and appraisers before the IRS.

Question :Disclosure

Correct answer:The release of tax information by an IRS

employee.

Question :Due Diligence

Correct answer:Requirements that tax professionals must

follow when preparing income tax returns.

Question :Noncompliance

Correct answer:Failure or refusal to comply with the tax

code.

Question :Privilege

Correct answer:Protection from being required to

disclose confidential communications between two parties, such as attorney and client.

Question :Estimated Tax

Correct answer:The amount of tax a taxpayer expects to

owe for the year after subtracting expected amounts withheld and certain refundable credits.

Question :Estimated Tax Voucher

Correct answer: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.

Question :Exemption from Withholding

Correct answer:Status claimed on Form W-4 directing

the employer not to withhold federal income taxes from the employee.

Question :Underpayment Penalty

Correct answer:If a taxpayer did not pay enough tax on a

timely basis during the year, he may be required to pay an underpayment penalty.

Question :Withholding Allowances

Correct answer:An increase by which income tax

withholding on certain income is reduced.

Question :Two Ways to Pay as You Go

Correct answer:Withholding and Estimated Tax

Payments

Question :Form W-4

Correct answer:Employee's Withholding Allowance

Certificate

Question :Form 8815

Correct answer:Exclusion of Interest From Series EE

and I U.S. Savings Bonds Issued After 1989

Question :Form 2210

Correct answer:Underpayment of Estimated Tax by

Individuals, Estates, and Trusts

Question :Form 4868

Correct answer:Application for Automatic Extension of

Time To File U.S. Individual Income Tax Return

Question :Form 8888

Correct answer:Allocation of Refund

Question :Form 9465

Correct answer:Installment Agreement Request

Question :Amended Return

Correct answer:A tax return filed on Form 1040X after

the original return has been filed.

Question :Closed Year

Correct answer:A tax year for which the statute of

limitations has expired.

Question :Open Year

Correct answer:A taxable year for which the statute of

limitations has not yet expired.

Question :Failure-to-File Penalty

Correct answer:Generally 5% for each month or part of a

month the return is late, but not more than 25% of the tax not paid.

Question :Failure to File

Correct answer:Taxpayer fails to file the return by the

due date, and there is a balance due.

Question :Failure to Pay