Final answer:
The frequency mentioned for handling pre-paid taxes is on a 'daily basis,' aligning it with option D) Daily basis. Payroll taxes are usually reported quarterly or annually, while individual income tax returns are filed yearly in mid-April.
Step-by-step explanation:
The question asks about the frequency with which pre-paid taxes are handled, which parallels to payroll tax reporting. In the context of the United States, payroll taxes are typically reported on a quarterly or annual basis. Although taxpayers are required to file an income tax return every year in mid-April, payroll taxes have their reporting intervals which may differ from individual income tax filings. The 1040EZ tax form, mentioned in the context, represented one of the simpler tax forms for individuals, emphasizing the need for citizens to settle their taxes owed from income earned over the year.
To address the stated question, prefacing with the indicated repetiton: 'In the same way pre-paid taxes are handled - on a daily basis.' The most accurate choice among the presented options would be: D) Daily basis.