You are correct. The first statement that you had was the right answer.
Most people pay federal income tax by having amounts withheld from their income. It is usually the employer who does the computation and for deducting the amount from your pay. The employer will have to submit all of their employees' tax amounts to IRS to have it processed. In this way, the employee don't have to file it directly with IRS.
The answer would be letter C.
The answer to your question is
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