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Multiple Choice
American citizens must pay federal taxes, which are paid via which of the following methods?
A
Making payments at local post offices
B
Purchasing government bonds
C
Direct payments to state governments
D
Filing annual income tax returns with the Internal Revenue Service (IRS)
Verified step by step guidance
1
Understand the context of the problem: It asks about the method by which American citizens pay federal taxes.
Recall that federal taxes in the U.S. are primarily collected by the Internal Revenue Service (IRS), a federal agency responsible for tax collection and enforcement.
Evaluate each option given: Paying at local post offices is not a standard method for federal tax payments; purchasing government bonds is a form of investment, not a tax payment; direct payments to state governments relate to state taxes, not federal taxes.
Recognize that the correct method involves filing annual income tax returns with the IRS, which is how individuals report their income and calculate their federal tax liability.
Conclude that the process of filing annual income tax returns with the IRS is the official and correct method for paying federal taxes in the United States.