H&R BLOCK INCOME TAX FINAL EXAM NEWEST 2025 ACTUAL EXAM
COMPLETE 140 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |100% GUARANTEED PASS!!
Regulations governing the practice of attorneys, certified public accountants, enrolled agents,
enrolled actuaries, and appraisers before the IRS. - (Answer) -Circular 230
The release of tax information by an IRS employee. - (Answer) -Disclosure
Requirements that tax professionals must follow when preparing income tax returns. - (Answer) -
Due Diligence
Failure or refusal to comply with the tax code. - (Answer) -Noncompliance
Protection from being required to disclose confidential communications between two parties, such
as attorney and client. - (Answer) -Privilege
The amount of tax a taxpayer expects to owe for the year after subtracting expected amounts
withheld and certain refundable credits. - (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. -
(Answer) -Estimated Tax Voucher
Status claimed on Form W-4 directing the employer not to withhold federal income taxes from the
employee. - (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. - (Answer) -Underpayment Penalty
An increase by which income tax withholding on certain income is reduced. - (Answer) -
Withholding Allowances
,Withholding and Estimated Tax Payments - (Answer) -Two Ways to Pay as You Go
Employee's Withholding Allowance Certificate - (Answer) -Form W-4
Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989 - (Answer) -Form
8815
Underpayment of Estimated Tax by Individuals, Estates, and Trusts - (Answer) -Form 2210
Application for Automatic Extension of Time To File U.S. Individual Income Tax Return -
(Answer) -Form 4868
Allocation of Refund - (Answer) -Form 8888
Installment Agreement Request - (Answer) -Form 9465
A tax return filed on Form 1040X after the original return has been filed. - (Answer) -Amended
Return
A tax year for which the statute of limitations has expired. - (Answer) -Closed Year
A taxable year for which the statute of limitations has not yet expired. - (Answer) -Open Year
Generally 5% for each month or part of a month the return is late, but not more than 25% of the
tax not paid. - (Answer) -Failure-to-File Penalty
Taxpayer fails to file the return by the due date, and there is a balance due. - (Answer) -Failure to
File
,Taxpayer fails to pay the tax owed by the due date. - (Answer) -Failure to Pay
0.5% of the unpaid taxes for each month or part of a month after the due date, but not more than
25%. - (Answer) -Failure-to-Pay Penalty
Taxpayer shows negligence or disregard of the rules or regulations causing an underpayment. -
(Answer) -Negligence or Intentional Disregard
20% of the underpayment. - (Answer) -Negligence-or-Intentional-Disregard Penalty
Taxpayer understates their tax by the larger of $5,000 or 10% of the correct tax. - (Answer) -
Substantial Understatment
20% of the underpayment. - (Answer) -Substantial-Understatement Penalty
Amended U.S. Individual Income Tax Return - (Answer) -Form 1040X
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. - (Answer) -When can an amended return be filed?
No. - (Answer) -Can the 1040X be e-filed?
An individual who performs nonbusiness services in a taxpayer's home. - (Answer) -Household
Employee
Those for which a taxpayer performs services. - (Answer) -Active Income and Losses
A form of business in which two or more persons join their money and skills in conducting the
business as co-owners. - (Answer) -Partnership
, Those from business activities in which the taxpayer does not materially participate, and all rental
activities. - (Answer) -Passive Income and Losses
Those from such sources as dividends, interest, capital gains and losses, and royalties. - (Answer) -
Portfolio Income and Losses
Income received by the taxpayer for allowing another person's use of the taxpayer's property. -
(Answer) -Rental Income
(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. - (Answer) -Royalty
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. - (Answer) -S Corporation
A tax entity that distributes all or part of its income to beneficiaries as instructed by the trust
agreement. - (Answer) -Trust
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. - (Answer) -Requirements for a Real Estate
Professional
Any activity that: Involves the conduct of a trade or business; is conducted in anticipation of starting
a trade or business; Involves research or experimental expenditures that are deductible under IRS
Code 174. - (Answer) -Trade or Business Activities
COMPLETE 140 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |100% GUARANTEED PASS!!
Regulations governing the practice of attorneys, certified public accountants, enrolled agents,
enrolled actuaries, and appraisers before the IRS. - (Answer) -Circular 230
The release of tax information by an IRS employee. - (Answer) -Disclosure
Requirements that tax professionals must follow when preparing income tax returns. - (Answer) -
Due Diligence
Failure or refusal to comply with the tax code. - (Answer) -Noncompliance
Protection from being required to disclose confidential communications between two parties, such
as attorney and client. - (Answer) -Privilege
The amount of tax a taxpayer expects to owe for the year after subtracting expected amounts
withheld and certain refundable credits. - (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. -
(Answer) -Estimated Tax Voucher
Status claimed on Form W-4 directing the employer not to withhold federal income taxes from the
employee. - (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. - (Answer) -Underpayment Penalty
An increase by which income tax withholding on certain income is reduced. - (Answer) -
Withholding Allowances
,Withholding and Estimated Tax Payments - (Answer) -Two Ways to Pay as You Go
Employee's Withholding Allowance Certificate - (Answer) -Form W-4
Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989 - (Answer) -Form
8815
Underpayment of Estimated Tax by Individuals, Estates, and Trusts - (Answer) -Form 2210
Application for Automatic Extension of Time To File U.S. Individual Income Tax Return -
(Answer) -Form 4868
Allocation of Refund - (Answer) -Form 8888
Installment Agreement Request - (Answer) -Form 9465
A tax return filed on Form 1040X after the original return has been filed. - (Answer) -Amended
Return
A tax year for which the statute of limitations has expired. - (Answer) -Closed Year
A taxable year for which the statute of limitations has not yet expired. - (Answer) -Open Year
Generally 5% for each month or part of a month the return is late, but not more than 25% of the
tax not paid. - (Answer) -Failure-to-File Penalty
Taxpayer fails to file the return by the due date, and there is a balance due. - (Answer) -Failure to
File
,Taxpayer fails to pay the tax owed by the due date. - (Answer) -Failure to Pay
0.5% of the unpaid taxes for each month or part of a month after the due date, but not more than
25%. - (Answer) -Failure-to-Pay Penalty
Taxpayer shows negligence or disregard of the rules or regulations causing an underpayment. -
(Answer) -Negligence or Intentional Disregard
20% of the underpayment. - (Answer) -Negligence-or-Intentional-Disregard Penalty
Taxpayer understates their tax by the larger of $5,000 or 10% of the correct tax. - (Answer) -
Substantial Understatment
20% of the underpayment. - (Answer) -Substantial-Understatement Penalty
Amended U.S. Individual Income Tax Return - (Answer) -Form 1040X
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. - (Answer) -When can an amended return be filed?
No. - (Answer) -Can the 1040X be e-filed?
An individual who performs nonbusiness services in a taxpayer's home. - (Answer) -Household
Employee
Those for which a taxpayer performs services. - (Answer) -Active Income and Losses
A form of business in which two or more persons join their money and skills in conducting the
business as co-owners. - (Answer) -Partnership
, Those from business activities in which the taxpayer does not materially participate, and all rental
activities. - (Answer) -Passive Income and Losses
Those from such sources as dividends, interest, capital gains and losses, and royalties. - (Answer) -
Portfolio Income and Losses
Income received by the taxpayer for allowing another person's use of the taxpayer's property. -
(Answer) -Rental Income
(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. - (Answer) -Royalty
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. - (Answer) -S Corporation
A tax entity that distributes all or part of its income to beneficiaries as instructed by the trust
agreement. - (Answer) -Trust
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. - (Answer) -Requirements for a Real Estate
Professional
Any activity that: Involves the conduct of a trade or business; is conducted in anticipation of starting
a trade or business; Involves research or experimental expenditures that are deductible under IRS
Code 174. - (Answer) -Trade or Business Activities
