H&R Block Income Tax Course Questions With Complete Solutions

Regulations governing the practice of attorneys, certified public accountants, enrolled agents, enrolled actuaries, and appraisers before the IRS. correct answer: Circular 230 The release of tax information by an IRS employee. correct answer: Disclosure Requirements that tax professionals must follow when preparing income tax returns. correct answer: Due Diligence Failure or refusal to comply with the tax code. correct answer: Noncompliance Protection from being required to disclose confidential communications between two parties, such as attorney and client. correct answer: Privilege The amount of tax a taxpayer expects to owe for the year after subtracting expected amounts withheld and certain refundable credits. correct answer: Estimated Tax 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. correct answer: Estimated Tax Voucher Status claimed on Form W-4 directing the employer not to withhold federal income taxes from the employee. correct answer: Exemption from Withholding If a taxpayer did not pay enough tax on a timely basis during the year, he may be required to pay an underpayment penalty. correct answer: Underpayment Penalty An increase by which income tax withholding on certain income is reduced. correct answer: Withholding Allowances Withholding and Estimated Tax Payments correct answer: Two Ways to Pay as You Go Employee's Withholding Allowance Certificate correct answer: Form W-4 Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989 correct answer: Form 8815 Underpayment of Estimated Tax by Individuals, Estates, and Trusts correct answer: Form 2210 Application for Automatic Extension of Time To File U.S. Individual Income Tax Return correct answer: Form 4868