Final answer:
The pay-as-you-go system does not require the IRS to issue refunds within 12 months; therefore, the statement is false. Pay-as-you-go involves tax being withheld from income throughout the year, with refunds issued for overpayment following the filing of a tax return.
Step-by-step explanation:
The statement is false: Pay-as-you-go does not require the IRS to pay refunds to taxpayers within 12 months of a filed tax return. Instead, pay-as-you-go refers to the system where taxes are paid on income as it is earned throughout the year, typically through withholding taxes from paychecks. Taxpayers then file their tax returns before the yearly deadline (usually April 15th), and if they have paid more than they owe, they receive a tax refund. The Internal Revenue Service (IRS) does strive for timely tax refunds, but there is no legal requirement for a 12-month deadline on the issuance.
If the IRS is slow in sending you a tax refund, you don't have the option to pay your income taxes through a different organization. The federal government does face pressure to seek greater efficiency and to improve customer responsiveness, but unlike private businesses, it doesn't face the threat of closure if it falls short in these areas.