CORRECT WELL DETAILED ANSWERS|LATEST
CORRECT = 100
100
INCORRECT=0
STUDY MATERIALS.......DESIGNED TO HELP YOU SUCCEED
SPOTLIGHT 1
1
, CORRECT WELL DETAILED ANSWERS|LATEST
UPDATE!!!!!!2026|GUARANTEED PASS|GRADED
Circular 230 - ANSWER Regulations governing the practice of attorneys, certified
public accountants, enrolled agents, enrolled actuaries, and appraisers before the IRS.
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.
2
,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.
3
, 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%.
Negligence or Intentional Disregard - ANSWER Taxpayer shows negligence or
disregard of the rules or regulations causing an underpayment.
Negligence-or-Intentional-Disregard Penalty - ANSWER 20% of the underpayment.
Substantial Understatment - ANSWER Taxpayer understates their tax by the larger of
$5,000 or 10% of the correct tax.
Substantial-Understatement Penalty - ANSWER 20% of the underpayment.
Form 1040X - ANSWER Amended U.S. Individual Income Tax Return
4
CORRECT = 100
100
INCORRECT=0
STUDY MATERIALS.......DESIGNED TO HELP YOU SUCCEED
SPOTLIGHT 1
1
, CORRECT WELL DETAILED ANSWERS|LATEST
UPDATE!!!!!!2026|GUARANTEED PASS|GRADED
Circular 230 - ANSWER Regulations governing the practice of attorneys, certified
public accountants, enrolled agents, enrolled actuaries, and appraisers before the IRS.
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.
2
,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.
3
, 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%.
Negligence or Intentional Disregard - ANSWER Taxpayer shows negligence or
disregard of the rules or regulations causing an underpayment.
Negligence-or-Intentional-Disregard Penalty - ANSWER 20% of the underpayment.
Substantial Understatment - ANSWER Taxpayer understates their tax by the larger of
$5,000 or 10% of the correct tax.
Substantial-Understatement Penalty - ANSWER 20% of the underpayment.
Form 1040X - ANSWER Amended U.S. Individual Income Tax Return
4
