Official Explanation

STEP 1: IDENTIFY THE QUESTION TYPE
The question stem indicates that the stimulus should be read as evidence for a conclusion you’ll find in the answer choices. Since you’re drawing a conclusion based on statements in the stimulus, this is an Inference question.

STEP 2: UNTANGLE THE STIMULUS
The author asserts that the IRS needs to operate more efficiently. The author also says that if taxpayers were not so afraid of the agency, it would have more difficulty collecting taxes. Fortunately (for the IRS), taxpayers report they are afraid of IRS audits.

STEP 3: PREDICT THE ANSWER
Connecting the dots between the statements in the stimulus, you can conclude that taxpayer fear is important for the IRS’s efficient operation. The correct answer will align with this idea

STEP 4: EVALUATE THE CHOICES
(C) matches the prediction and is correct. (A) introduces the idea of credits and refunds. Although the stimulus says most taxpayers are concerned about late fees and penalties, this does not mean they aren’t also interested in credits and refunds.

(B) is not supported by the stimulus. Be wary of sensible-sounding statements that are not based on the text. The author does not suggest that the people who are afraid of audits are not complying with the law.

(D) is not supported because the stimulus provides no evidence for how people felt more than 10 years ago; the only evidence is from polls during the last 10 years.

(E) is an irrelevant comparison. The stimulus speaks to whether or not taxes can be collected on time but says nothing about the costs of tax collection.

Answer: C