H&R Block Tax Training Mastery 2025–
2026 | Complete Exam Review & Answer
Guide
1. **Circular 230**
- Regulations governing the practice of attorneys, certified public accountants,
enrolled agents, enrolled actuaries, and appraisers before the IRS.
2. **Disclosure**
- The release of tax information by an IRS employee.
3. **Due Diligence**
- Requirements that tax professionals must follow when preparing income tax returns.
4. **Noncompliance**
- Failure or refusal to comply with the tax code.
5. **Privilege**
- Protection from being required to disclose confidential communications between two
parties, such as attorney and client.
6. **Estimated Tax**
- The amount of tax a taxpayer expects to owe for the year after subtracting expected
amounts withheld and certain refundable credits.
,7. **Estimated Tax Voucher**
- 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.
8. **Exemption from Withholding**
- Status claimed on Form W-4 directing the employer not to withhold federal income
taxes from the employee.
9. **Underpayment Penalty**
- If a taxpayer did not pay enough tax on a timely basis during the year, he may be
required to pay an underpayment penalty.
10. **Withholding Allowances**
- An increase by which income tax withholding on certain income is reduced.
11. **Two Ways to Pay as You Go**
- Withholding and Estimated Tax Payments
12. **Form W-4**
- Employee’s Withholding Allowance Certificate
13. **Form 8815**
- Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989
14. **Form 2210**
- Underpayment of Estimated Tax by Individuals, Estates, and Trusts
,15. **Form 4868**
- Application for Automatic Extension of Time To File U.S. Individual Income Tax
Return
16. **Form 8888**
- Allocation of Refund
17. **Form 9465**
- Installment Agreement Request
18. **Amended Return**
- A tax return filed on Form 1040X after the original return has been filed.
19. **Closed Year**
- A tax year for which the statute of limitations has expired.
20. **Open Year**
- A taxable year for which the statute of limitations has not yet expired.
21. **Failure-to-File Penalty**
- Generally 5% for each month or part of a month the return is late, but not more than
25% of the tax not paid.
22. **Failure to File**
- Taxpayer fails to file the return by the due date, and there is a balance due.
23. **Failure to Pay**
- Taxpayer fails to pay the tax owed by the due date.
, 24. **Failure-to-Pay Penalty**
- 0.5% of the unpaid taxes for each month or part of a month after the due date, but
not more than 25%.
25. **Negligence or Intentional Disregard**
- Taxpayer shows negligence or disregard of the rules or regulations causing an
underpayment.
26. **Negligence-or-Intentional-Disregard Penalty**
- 20% of the underpayment.
27. **Substantial Understatement**
- Taxpayer understates their tax by the larger of $5,000 or 10% of the correct tax.
28. **Substantial-Understatement Penalty**
- 20% of the underpayment.
29. **Form 1040X**
- Amended U.S. Individual Income Tax Return
30. **When can an amended return be filed?**
- 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.
31. **Can the 1040X be e-filed?**
- No.
2026 | Complete Exam Review & Answer
Guide
1. **Circular 230**
- Regulations governing the practice of attorneys, certified public accountants,
enrolled agents, enrolled actuaries, and appraisers before the IRS.
2. **Disclosure**
- The release of tax information by an IRS employee.
3. **Due Diligence**
- Requirements that tax professionals must follow when preparing income tax returns.
4. **Noncompliance**
- Failure or refusal to comply with the tax code.
5. **Privilege**
- Protection from being required to disclose confidential communications between two
parties, such as attorney and client.
6. **Estimated Tax**
- The amount of tax a taxpayer expects to owe for the year after subtracting expected
amounts withheld and certain refundable credits.
,7. **Estimated Tax Voucher**
- 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.
8. **Exemption from Withholding**
- Status claimed on Form W-4 directing the employer not to withhold federal income
taxes from the employee.
9. **Underpayment Penalty**
- If a taxpayer did not pay enough tax on a timely basis during the year, he may be
required to pay an underpayment penalty.
10. **Withholding Allowances**
- An increase by which income tax withholding on certain income is reduced.
11. **Two Ways to Pay as You Go**
- Withholding and Estimated Tax Payments
12. **Form W-4**
- Employee’s Withholding Allowance Certificate
13. **Form 8815**
- Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989
14. **Form 2210**
- Underpayment of Estimated Tax by Individuals, Estates, and Trusts
,15. **Form 4868**
- Application for Automatic Extension of Time To File U.S. Individual Income Tax
Return
16. **Form 8888**
- Allocation of Refund
17. **Form 9465**
- Installment Agreement Request
18. **Amended Return**
- A tax return filed on Form 1040X after the original return has been filed.
19. **Closed Year**
- A tax year for which the statute of limitations has expired.
20. **Open Year**
- A taxable year for which the statute of limitations has not yet expired.
21. **Failure-to-File Penalty**
- Generally 5% for each month or part of a month the return is late, but not more than
25% of the tax not paid.
22. **Failure to File**
- Taxpayer fails to file the return by the due date, and there is a balance due.
23. **Failure to Pay**
- Taxpayer fails to pay the tax owed by the due date.
, 24. **Failure-to-Pay Penalty**
- 0.5% of the unpaid taxes for each month or part of a month after the due date, but
not more than 25%.
25. **Negligence or Intentional Disregard**
- Taxpayer shows negligence or disregard of the rules or regulations causing an
underpayment.
26. **Negligence-or-Intentional-Disregard Penalty**
- 20% of the underpayment.
27. **Substantial Understatement**
- Taxpayer understates their tax by the larger of $5,000 or 10% of the correct tax.
28. **Substantial-Understatement Penalty**
- 20% of the underpayment.
29. **Form 1040X**
- Amended U.S. Individual Income Tax Return
30. **When can an amended return be filed?**
- 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.
31. **Can the 1040X be e-filed?**
- No.
