Answer:
Federal income tax are more daunting for business owners than other types of tax because the tax terms are not defined.
The Option D is correct.
Step-by-step explanation:
It is a tax levied by Internal Revenue Service on annual earnings of individuals, corporations, trusts, and other legal entities. This taxes applies to all forms of earnings that make up a taxpayer's taxable income including wages, salaries, commissions, bonuses, tips, investment income etc.
In 2022 year, there are 7 federal tax brackets which includes 10%, 12%, 22%, 24%, 32%, 35% and 37%.