Checks for income tax and social security payments should be made payable to which entity?

The correct answer is based on the standard practice for processing payments to the government. Checks for income tax and social security payments should be made payable to the Internal Revenue Service. This is because these payments are required by federal law to be sent directly to the IRS, which is the federal body responsible for tax collection and social security administration in the United States.

When individuals or businesses make payments for their income taxes or social security contributions, they must ensure that they are addressing those payments to the IRS to ensure proper processing and to avoid any potential complications, such as misallocation of funds or delays in crediting the payment to their accounts.

While checks made out to the employer's name or a state government may be appropriate in other contexts, such as for payroll processing or state taxes, they are not applicable for federal income tax and social security payments, which must specifically be directed to the IRS. The order of the bank is also an unsuitable choice because checks cannot be addressed to a financial institution for these types of government payments. This clarity about the appropriate entity for these types of payments ensures compliance with regulations and the correct handling of tax responsibilities.