H&R BLOCK MIDTERM EXAM MOCK TEST WITH
ANSWER RATIONALES 2026
◉ Disclosure.
Answer: The release of tax information by an IRS employee.
◉ Due Diligence.
Answer: Requirements that tax professionals must follow when
preparing income tax returns.
◉ Noncompliance.
Answer: Failure or refusal to comply with the tax code.
◉ Privilege.
Answer: Protection from being required to disclose confidential
communications between two parties, such as attorney and client.
◉ Estimated Tax.
Answer: The amount of tax a taxpayer expects to owe for the year
after subtracting expected amounts withheld and certain refundable
credits.
,◉ Estimated Tax Voucher.
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.
◉ Exemption from Withholding.
Answer: Status claimed on Form W-4 directing the employer not to
withhold federal income taxes from the employee.
◉ Underpayment Penalty.
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.
◉ Withholding Allowances.
Answer: An increase by which income tax withholding on certain
income is reduced.
◉ Two Ways to Pay as You Go.
Answer: Withholding and Estimated Tax Payments
◉ Form W-4.
,Answer: Employee's Withholding Allowance Certificate
◉ Form 8815.
Answer: Exclusion of Interest From Series EE and I U.S. Savings
Bonds Issued After 1989
◉ Form 2210.
Answer: Underpayment of Estimated Tax by Individuals, Estates, and
Trusts
◉ Form 4868.
Answer: Application for Automatic Extension of Time To File U.S.
Individual Income Tax Return
◉ Form 8888.
Answer: Allocation of Refund
◉ Form 9465.
Answer: Installment Agreement Request
◉ Amended Return.
Answer: A tax return filed on Form 1040X after the original return
has been filed.
, ◉ Closed Year.
Answer: A tax year for which the statute of limitations has expired.
◉ Open Year.
Answer: A taxable year for which the statute of limitations has not
yet expired.
◉ Failure-to-File Penalty.
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.
◉ Failure to File.
Answer: Taxpayer fails to file the return by the due date, and there is
a balance due.
◉ Failure to Pay.
Answer: Taxpayer fails to pay the tax owed by the due date.
◉ Failure-to-Pay Penalty.
Answer: 0.5% of the unpaid taxes for each month or part of a month
after the due date, but not more than 25%.
ANSWER RATIONALES 2026
◉ Disclosure.
Answer: The release of tax information by an IRS employee.
◉ Due Diligence.
Answer: Requirements that tax professionals must follow when
preparing income tax returns.
◉ Noncompliance.
Answer: Failure or refusal to comply with the tax code.
◉ Privilege.
Answer: Protection from being required to disclose confidential
communications between two parties, such as attorney and client.
◉ Estimated Tax.
Answer: The amount of tax a taxpayer expects to owe for the year
after subtracting expected amounts withheld and certain refundable
credits.
,◉ Estimated Tax Voucher.
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.
◉ Exemption from Withholding.
Answer: Status claimed on Form W-4 directing the employer not to
withhold federal income taxes from the employee.
◉ Underpayment Penalty.
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.
◉ Withholding Allowances.
Answer: An increase by which income tax withholding on certain
income is reduced.
◉ Two Ways to Pay as You Go.
Answer: Withholding and Estimated Tax Payments
◉ Form W-4.
,Answer: Employee's Withholding Allowance Certificate
◉ Form 8815.
Answer: Exclusion of Interest From Series EE and I U.S. Savings
Bonds Issued After 1989
◉ Form 2210.
Answer: Underpayment of Estimated Tax by Individuals, Estates, and
Trusts
◉ Form 4868.
Answer: Application for Automatic Extension of Time To File U.S.
Individual Income Tax Return
◉ Form 8888.
Answer: Allocation of Refund
◉ Form 9465.
Answer: Installment Agreement Request
◉ Amended Return.
Answer: A tax return filed on Form 1040X after the original return
has been filed.
, ◉ Closed Year.
Answer: A tax year for which the statute of limitations has expired.
◉ Open Year.
Answer: A taxable year for which the statute of limitations has not
yet expired.
◉ Failure-to-File Penalty.
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.
◉ Failure to File.
Answer: Taxpayer fails to file the return by the due date, and there is
a balance due.
◉ Failure to Pay.
Answer: Taxpayer fails to pay the tax owed by the due date.
◉ Failure-to-Pay Penalty.
Answer: 0.5% of the unpaid taxes for each month or part of a month
after the due date, but not more than 25%.
