The Internal Revenue Service has issued a warning about a phoney web page
looking essentially identical to a real page that offers products for tax preparers.
A- looking essentially identical to a real page that offers products for tax preparers
The main problem with this the usage of the participle modifier "looking". When an -ing modifier appears at the end of a clause, it modifies the subject of the previous clause and not the immediately preceding noun/noun idea. Hence, "looking" here will apply to the subject of the previous clause ie; the IRS. This is clearly contrary to the intended meaning of the sentence. Incorrect.B- That looks essentially identical to a real page that offers products for tax preparers
This is correct. "That" will apply to the immediately preceding noun/noun idea, in this case, the "phoney web page".C- Having looked essentially identical to a real page that offers products for tax preparers
Same as (A). Incorrect.D- It looks essentially identical to a real page that offers products for tax payers
Plugging this option into the question: The Internal Revenue Service has issued a warning about a phoney web page it looks essentially identical to a real page that offers products for tax payers. The pronoun "it" immediately follows the noun that it refers to ie; "phoney web page" - clearly redundant. Incorrect.E- Looking identical essentially to a real page that offers products for tax preparers
Same as (A) and (C). Incorrect.Hope this helps.