9/7/25, 8:47 AM H&R Block Income Tax Course Exam Questions & Answers | 100% Verified solutions |Questions with Correct Answers 2025 latest u…
H&R Block Income Tax Course Exam Questions &
Answers | 100% Verified solutions |Questions with
Correct Answers 2025 latest update!!
Save
Terms in this set (566)
Regulations governing the practice of attorneys,
Circular 230 certified public accountants, enrolled agents,
enrolled actuaries, and appraisers before the IRS.
Disclosure The release of tax information by an IRS employee.
Requirements that tax professionals must follow when
Due Diligence
preparing income tax returns.
Noncompliance Failure or refusal to comply with the tax code.
Protection from being required to disclose
Privilege confidential communications between two parties,
such as attorney and client.
The amount of tax a taxpayer expects to owe for the
Estimated Tax year after subtracting expected amounts withheld and
certain refundable credits.
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
Estimated Tax Voucher
withholding, (2) the excess amount over that withheld
on income which is subject to withholding, and (3) his
estimated self-employment tax.
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Status claimed on Form W-4 directing the employer
Exemption from
not to withhold federal income taxes from the
Withholding
employee.
If a taxpayer did not pay enough tax on a timely basis
Underpayment Penalty during the year, he may be required to pay an
underpayment penalty.
An increase by which income tax withholding on
Withholding Allowances
certain income is reduced.
Two Ways to Pay as You Withholding and Estimated Tax Payments
Go
Form W-4 Employee's Withholding Allowance Certificate
Exclusion of Interest From Series EE and I U.S. Savings
Form 8815
Bonds Issued After 1989
Underpayment of Estimated Tax by Individuals,
Form 2210
Estates, and Trusts
Application for Automatic Extension of Time To File
Form 4868
U.S. Individual Income Tax Return
Form 8888 Allocation of Refund
Form 9465 Installment Agreement Request
A tax return filed on Form 1040X after the original
Amended Return
return has been filed.
A tax year for which the statute of limitations has
Closed Year
expired.
A taxable year for which the statute of limitations has
Open Year
not yet expired.
Generally 5% for each month or part of a month the
Failure-to-File Penalty return is late, but not more than 25% of the tax not
paid.
Taxpayer fails to file the return by the due date, and
Failure to File
there is a balance due.
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Failure to Pay Taxpayer fails to pay the tax owed by the due date.
0.5% of the unpaid taxes for each month or part of a
Failure-to-Pay Penalty
month after the due date, but not more than 25%.
Negligence or Intentional Taxpayer shows negligence or disregard of the rules
Disregard or regulations causing an underpayment.
Negligence-or- 20% of the underpayment.
Intentional-Disregard
Penalty
Taxpayer understates their tax by the larger of $5,000
Substantial Understatment
or 10% of the correct tax.
Substantial- 20% of the underpayment.
Understatement Penalty
Form 1040X Amended U.S. Individual Income Tax Return
Within three years of the date the original return was
When can an amended
filed, or within two years of the date the tax was paid,
return be filed?
whichever is later.
Can the 1040X be e-filed? No.
An individual who performs nonbusiness services in a
Household Employee
taxpayer's home.
Active Income and Losses Those for which a taxpayer performs services.
A form of business in which two or more persons join
Partnership their money and skills in conducting the business as
co-owners.
Those from business activities in which the taxpayer
Passive Income and
does not materially participate, and all rental
Losses
activities.
Portfolio Income and Those from such sources as dividends, interest, capital
Losses gains and losses, and royalties.
Income received by the taxpayer for allowing another
Rental Income
person's use of the taxpayer's property.
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(1) A payment received for the right to exploit a
taxpayer's ownership of natural resources or a
taxpayer's literary, musical, or artistic creation. (2) An
Royalty interest in the oil and gas in place that entitles the
holder to a specified fraction, in kind or in value, of
the total production from the property, free of any
expenses of development and operation.
A qualified small business corporation that has
elected special tax treatment under subchapter S of
S Corporation the Internal Revenue Code. S corporations pass
income, losses, and deductions through to
shareholders to report on their individual returns.
A tax entity that distributes all or part of its income to
Trust
beneficiaries as instructed by the trust agreement.
1. More than half of the personal services performed
by the taxpayer in all trades or businesses during the
tax year were performed in real property trades or
businesses in which the taxpayer materially
Requirements for a Real
participated.
Estate Professional
2. The taxpayer performed more than 750 hours of
services during the year in real property trades or
businesses in which the taxpayer materially
participated.
Any activity that: Involves the conduct of a trade or
Trade or Business business; is conducted in anticipation of starting a
Activities trade or business; Involves research or experimental
expenditures that are deductible under IRS Code 174.
Nonpassive Income Income derived from activities that are not passive.
Types of Nonpassive Portfolio income; personal service income; other
Income income.
Includes interest, dividends, annuities, and royalties
Portfolio Income
not derived in the ordinary course of business.
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H&R Block Income Tax Course Exam Questions &
Answers | 100% Verified solutions |Questions with
Correct Answers 2025 latest update!!
Save
Terms in this set (566)
Regulations governing the practice of attorneys,
Circular 230 certified public accountants, enrolled agents,
enrolled actuaries, and appraisers before the IRS.
Disclosure The release of tax information by an IRS employee.
Requirements that tax professionals must follow when
Due Diligence
preparing income tax returns.
Noncompliance Failure or refusal to comply with the tax code.
Protection from being required to disclose
Privilege confidential communications between two parties,
such as attorney and client.
The amount of tax a taxpayer expects to owe for the
Estimated Tax year after subtracting expected amounts withheld and
certain refundable credits.
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
Estimated Tax Voucher
withholding, (2) the excess amount over that withheld
on income which is subject to withholding, and (3) his
estimated self-employment tax.
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,9/7/25, 8:47 AM H&R Block Income Tax Course Exam Questions & Answers | 100% Verified solutions |Questions with Correct Answers 2025 latest u…
Status claimed on Form W-4 directing the employer
Exemption from
not to withhold federal income taxes from the
Withholding
employee.
If a taxpayer did not pay enough tax on a timely basis
Underpayment Penalty during the year, he may be required to pay an
underpayment penalty.
An increase by which income tax withholding on
Withholding Allowances
certain income is reduced.
Two Ways to Pay as You Withholding and Estimated Tax Payments
Go
Form W-4 Employee's Withholding Allowance Certificate
Exclusion of Interest From Series EE and I U.S. Savings
Form 8815
Bonds Issued After 1989
Underpayment of Estimated Tax by Individuals,
Form 2210
Estates, and Trusts
Application for Automatic Extension of Time To File
Form 4868
U.S. Individual Income Tax Return
Form 8888 Allocation of Refund
Form 9465 Installment Agreement Request
A tax return filed on Form 1040X after the original
Amended Return
return has been filed.
A tax year for which the statute of limitations has
Closed Year
expired.
A taxable year for which the statute of limitations has
Open Year
not yet expired.
Generally 5% for each month or part of a month the
Failure-to-File Penalty return is late, but not more than 25% of the tax not
paid.
Taxpayer fails to file the return by the due date, and
Failure to File
there is a balance due.
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Failure to Pay Taxpayer fails to pay the tax owed by the due date.
0.5% of the unpaid taxes for each month or part of a
Failure-to-Pay Penalty
month after the due date, but not more than 25%.
Negligence or Intentional Taxpayer shows negligence or disregard of the rules
Disregard or regulations causing an underpayment.
Negligence-or- 20% of the underpayment.
Intentional-Disregard
Penalty
Taxpayer understates their tax by the larger of $5,000
Substantial Understatment
or 10% of the correct tax.
Substantial- 20% of the underpayment.
Understatement Penalty
Form 1040X Amended U.S. Individual Income Tax Return
Within three years of the date the original return was
When can an amended
filed, or within two years of the date the tax was paid,
return be filed?
whichever is later.
Can the 1040X be e-filed? No.
An individual who performs nonbusiness services in a
Household Employee
taxpayer's home.
Active Income and Losses Those for which a taxpayer performs services.
A form of business in which two or more persons join
Partnership their money and skills in conducting the business as
co-owners.
Those from business activities in which the taxpayer
Passive Income and
does not materially participate, and all rental
Losses
activities.
Portfolio Income and Those from such sources as dividends, interest, capital
Losses gains and losses, and royalties.
Income received by the taxpayer for allowing another
Rental Income
person's use of the taxpayer's property.
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(1) A payment received for the right to exploit a
taxpayer's ownership of natural resources or a
taxpayer's literary, musical, or artistic creation. (2) An
Royalty interest in the oil and gas in place that entitles the
holder to a specified fraction, in kind or in value, of
the total production from the property, free of any
expenses of development and operation.
A qualified small business corporation that has
elected special tax treatment under subchapter S of
S Corporation the Internal Revenue Code. S corporations pass
income, losses, and deductions through to
shareholders to report on their individual returns.
A tax entity that distributes all or part of its income to
Trust
beneficiaries as instructed by the trust agreement.
1. More than half of the personal services performed
by the taxpayer in all trades or businesses during the
tax year were performed in real property trades or
businesses in which the taxpayer materially
Requirements for a Real
participated.
Estate Professional
2. The taxpayer performed more than 750 hours of
services during the year in real property trades or
businesses in which the taxpayer materially
participated.
Any activity that: Involves the conduct of a trade or
Trade or Business business; is conducted in anticipation of starting a
Activities trade or business; Involves research or experimental
expenditures that are deductible under IRS Code 174.
Nonpassive Income Income derived from activities that are not passive.
Types of Nonpassive Portfolio income; personal service income; other
Income income.
Includes interest, dividends, annuities, and royalties
Portfolio Income
not derived in the ordinary course of business.
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