H&R BLOCK INCOME TAX ACTUAL TEST
BANK UPDATED QUESTIONS AND
VERIFIED RESPONSES
●● 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.
●● 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.
, ●● 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
BANK UPDATED QUESTIONS AND
VERIFIED RESPONSES
●● 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.
●● 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.
, ●● 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
