H&R Block Income Tax Course
Questions And Answers With Verified
Solutions Rated A+
Circular 230
Regulations governing the practice of tax professionals before the IRS.
Disclosure
The release of tax information by an IRS employee.
Due Diligence
Requirements tax professionals must follow when preparing tax returns.
Noncompliance
Failure to follow tax law.
Privilege
Legal protection from disclosing confidential communications.
Estimated Tax
A taxpayer's expectation of owed tax after adjustments for withholdings and
credits.
Estimated Tax Voucher
Statement by an individual estimating their tax and self-employment liabilities.
Exemption from Withholding
Status on Form W-4 that directs the employer not to withhold federal income tax.
,Underpayment Penalty
A penalty applied when taxes owed are not timely paid.
Withholding Allowances
Adjustments that reduce the amount of tax withheld from income.
Two Ways to Pay as You Go
Through withholding and estimated tax payments.
Form W-4
Employee's Withholding Allowance Certificate.
Form 8815
Exclusion of interest from certain U.S. savings bonds.
Form 2210
Underpayment of Estimated Tax by individuals.
Form 4868
Application for an extension to file individual income tax returns.
Form 8888
Allocation of tax refund.
Form 9465
Installment Agreement Request.
,Amended Return (Form 1040X)
A return filed to correct an earlier filed return.
Closed Year
A tax year after the statute of limitations has expired.
Open Year
A tax year within the statute of limitations.
Failure-to-File Penalty
A penalty for not filing a tax return by the due date.
Failure-to-Pay Penalty
A penalty for not paying owed taxes on time.
Negligence or Intentional Disregard
A penalty applied for underpayment due to negligence or intentional disregard of
tax rules.
Substantial Understatement Penalty
A penalty for understating tax liability by a significant amount.
Form 1040X
Form used to amend an individual income tax return.
Household Employee
An individual who performs personal services in a taxpayer’s home.
, Active Income and Losses
Income derived from services the taxpayer personally performs.
Partnership
A business form where two or more individuals co-own a business.
Passive Income and Losses
Income from businesses in which the taxpayer does not materially participate.
Portfolio Income and Losses
Income from dividends, interest, and capital gains.
Rental Income
Income from allowing someone else to use the taxpayer's property.
Royalty
Payments for the use of a taxpayer’s intellectual or natural property.
S Corporation
A small business corporation that passes income through to shareholders for
individual taxation.
Trust
A tax entity distributing income to beneficiaries as per the trust agreement.
Requirements for a Real Estate Professional
Conditions for a taxpayer to be treated as a real estate professional for tax
purposes.
Questions And Answers With Verified
Solutions Rated A+
Circular 230
Regulations governing the practice of tax professionals before the IRS.
Disclosure
The release of tax information by an IRS employee.
Due Diligence
Requirements tax professionals must follow when preparing tax returns.
Noncompliance
Failure to follow tax law.
Privilege
Legal protection from disclosing confidential communications.
Estimated Tax
A taxpayer's expectation of owed tax after adjustments for withholdings and
credits.
Estimated Tax Voucher
Statement by an individual estimating their tax and self-employment liabilities.
Exemption from Withholding
Status on Form W-4 that directs the employer not to withhold federal income tax.
,Underpayment Penalty
A penalty applied when taxes owed are not timely paid.
Withholding Allowances
Adjustments that reduce the amount of tax withheld from income.
Two Ways to Pay as You Go
Through withholding and estimated tax payments.
Form W-4
Employee's Withholding Allowance Certificate.
Form 8815
Exclusion of interest from certain U.S. savings bonds.
Form 2210
Underpayment of Estimated Tax by individuals.
Form 4868
Application for an extension to file individual income tax returns.
Form 8888
Allocation of tax refund.
Form 9465
Installment Agreement Request.
,Amended Return (Form 1040X)
A return filed to correct an earlier filed return.
Closed Year
A tax year after the statute of limitations has expired.
Open Year
A tax year within the statute of limitations.
Failure-to-File Penalty
A penalty for not filing a tax return by the due date.
Failure-to-Pay Penalty
A penalty for not paying owed taxes on time.
Negligence or Intentional Disregard
A penalty applied for underpayment due to negligence or intentional disregard of
tax rules.
Substantial Understatement Penalty
A penalty for understating tax liability by a significant amount.
Form 1040X
Form used to amend an individual income tax return.
Household Employee
An individual who performs personal services in a taxpayer’s home.
, Active Income and Losses
Income derived from services the taxpayer personally performs.
Partnership
A business form where two or more individuals co-own a business.
Passive Income and Losses
Income from businesses in which the taxpayer does not materially participate.
Portfolio Income and Losses
Income from dividends, interest, and capital gains.
Rental Income
Income from allowing someone else to use the taxpayer's property.
Royalty
Payments for the use of a taxpayer’s intellectual or natural property.
S Corporation
A small business corporation that passes income through to shareholders for
individual taxation.
Trust
A tax entity distributing income to beneficiaries as per the trust agreement.
Requirements for a Real Estate Professional
Conditions for a taxpayer to be treated as a real estate professional for tax
purposes.
