H&R Block Tax Assessment Specialist Test Exam 2026
Complete Practice Questions - Verified Answers &
Rationales 3 versions
Pass your professional onboarding validation on the first attempt with this
definitive H&R Block Tax Assessment Specialist practice exam bank
containing questions 1 through . This comprehensive preparation guide
features 100% verified correct answers and detailed regulatory rationales
covering IRS tax codes, itemized deductions, earned income tax credits
(EITC), capital gains, and self-employment filing rules. It is an
indispensable study tool for incoming tax professionals, seasonal
preparers, and accounting students looking to clear the assessment quickly
and secure top tier certification marks.
Question 1
What is the statute of limitations for the IRS to assess additional tax on a return
that is fraudulent?
A. 3 years
B. 6 years
C. 10 years
D. No statute of limitations
Correct Answer: D
Rationale: There is no statute of limitations for the IRS to audit or assess additional tax on
a fraudulent return. Fraudulent returns remain open indefinitely .
Question 2
A taxpayer who files a return with a substantial omission of income (over 25% of
gross income) has a statute of limitations of:
A. 6 years
B. 3 years
,C. 10 years
D. No time limit
Correct Answer: A
Rationale: The statute of limitations is extended to six years if there is a substantial
omission of income (more than 25% of gross income) .
Question 3
A taxpayer who disagrees with an IRS audit adjustment may file a petition with:
A. State tax court
B. U.S. Tax Court
C. U.S. District Court
D. Small Claims Court
Correct Answer: B
Rationale: Taxpayers who disagree with an audit adjustment can file a petition with the
U.S. Tax Court, which specializes in tax disputes and does not require payment of the
disputed tax upfront .
Question 4
The Taxpayer Advocate Service is:
A. An independent IRS office that helps taxpayers resolve problems
B. A private law firm
C. A tax preparation service
D. A federal court
Correct Answer: A
Rationale: The Taxpayer Advocate Service is an independent office within the IRS that
helps taxpayers resolve problems with the IRS .
,Question 5
An Offer in Compromise allows a taxpayer to:
A. Settle tax debt for less than the full amount owed
B. Extend the time to file a return
C. Claim additional deductions
D. Change filing status after the deadline
Correct Answer: A
Rationale: An Offer in Compromise allows taxpayers to settle their tax debt for less than
the full amount owed when they cannot pay the full amount .
Question 6
A taxpayer who is unable to pay their tax liability may request all of the following
EXCEPT:
A. Installment agreement
B. Offer in compromise
C. Temporary delay in collection
D. A reduction in the actual tax liability without justification
Correct Answer: D
Rationale: Taxpayers can request installment agreements, offers in compromise, or
temporary delays in collection, but they cannot simply request a reduction in the tax
liability without a valid legal basis .
Question 7
Which of the following is an example of a "nonqualified" retirement plan?
A. 401(k) plan
B. Defined benefit plan
C. Deferred compensation plan for executives
D. Profit sharing plan
, Correct Answer: C
Rationale: Nonqualified plans do not meet the requirements of IRC §401(a) and ERISA and
do not qualify for favorable tax treatment. Executive deferred compensation plans are
common examples .
Question 8
A qualified plan is one that:
A. Meets the requirements of both IRC 401(a) and ERISA
B. Is available only to executives
C. Does not require IRS approval
D. Is exempt from all reporting requirements
Correct Answer: A
Rationale: Qualified plans meet the requirements of both IRC §401(a) and ERISA, making
them eligible for favorable tax treatment including tax-deferred contributions and tax-
exempt trust status .
Question 9
What is the maximum dependent care expense that can be used for one qualifying
individual?
A. $2,000
B. $2,500
**C. $3,000**
D. $6,000
Correct Answer: C
Rationale: The maximum qualified expense for one qualifying individual is $3,000. For two
or more qualifying individuals, the maximum is $6,000 .
Complete Practice Questions - Verified Answers &
Rationales 3 versions
Pass your professional onboarding validation on the first attempt with this
definitive H&R Block Tax Assessment Specialist practice exam bank
containing questions 1 through . This comprehensive preparation guide
features 100% verified correct answers and detailed regulatory rationales
covering IRS tax codes, itemized deductions, earned income tax credits
(EITC), capital gains, and self-employment filing rules. It is an
indispensable study tool for incoming tax professionals, seasonal
preparers, and accounting students looking to clear the assessment quickly
and secure top tier certification marks.
Question 1
What is the statute of limitations for the IRS to assess additional tax on a return
that is fraudulent?
A. 3 years
B. 6 years
C. 10 years
D. No statute of limitations
Correct Answer: D
Rationale: There is no statute of limitations for the IRS to audit or assess additional tax on
a fraudulent return. Fraudulent returns remain open indefinitely .
Question 2
A taxpayer who files a return with a substantial omission of income (over 25% of
gross income) has a statute of limitations of:
A. 6 years
B. 3 years
,C. 10 years
D. No time limit
Correct Answer: A
Rationale: The statute of limitations is extended to six years if there is a substantial
omission of income (more than 25% of gross income) .
Question 3
A taxpayer who disagrees with an IRS audit adjustment may file a petition with:
A. State tax court
B. U.S. Tax Court
C. U.S. District Court
D. Small Claims Court
Correct Answer: B
Rationale: Taxpayers who disagree with an audit adjustment can file a petition with the
U.S. Tax Court, which specializes in tax disputes and does not require payment of the
disputed tax upfront .
Question 4
The Taxpayer Advocate Service is:
A. An independent IRS office that helps taxpayers resolve problems
B. A private law firm
C. A tax preparation service
D. A federal court
Correct Answer: A
Rationale: The Taxpayer Advocate Service is an independent office within the IRS that
helps taxpayers resolve problems with the IRS .
,Question 5
An Offer in Compromise allows a taxpayer to:
A. Settle tax debt for less than the full amount owed
B. Extend the time to file a return
C. Claim additional deductions
D. Change filing status after the deadline
Correct Answer: A
Rationale: An Offer in Compromise allows taxpayers to settle their tax debt for less than
the full amount owed when they cannot pay the full amount .
Question 6
A taxpayer who is unable to pay their tax liability may request all of the following
EXCEPT:
A. Installment agreement
B. Offer in compromise
C. Temporary delay in collection
D. A reduction in the actual tax liability without justification
Correct Answer: D
Rationale: Taxpayers can request installment agreements, offers in compromise, or
temporary delays in collection, but they cannot simply request a reduction in the tax
liability without a valid legal basis .
Question 7
Which of the following is an example of a "nonqualified" retirement plan?
A. 401(k) plan
B. Defined benefit plan
C. Deferred compensation plan for executives
D. Profit sharing plan
, Correct Answer: C
Rationale: Nonqualified plans do not meet the requirements of IRC §401(a) and ERISA and
do not qualify for favorable tax treatment. Executive deferred compensation plans are
common examples .
Question 8
A qualified plan is one that:
A. Meets the requirements of both IRC 401(a) and ERISA
B. Is available only to executives
C. Does not require IRS approval
D. Is exempt from all reporting requirements
Correct Answer: A
Rationale: Qualified plans meet the requirements of both IRC §401(a) and ERISA, making
them eligible for favorable tax treatment including tax-deferred contributions and tax-
exempt trust status .
Question 9
What is the maximum dependent care expense that can be used for one qualifying
individual?
A. $2,000
B. $2,500
**C. $3,000**
D. $6,000
Correct Answer: C
Rationale: The maximum qualified expense for one qualifying individual is $3,000. For two
or more qualifying individuals, the maximum is $6,000 .
