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A taxpayer files their return and pays the IRS $2,500 for their taxes due. Upon examination, the IRS determines that the taxpayer understated their liability

A taxpayer files their return and pays the IRS $2,500 for their taxes due. Upon examination, the IRS determines that the taxpayer understated their liability and they actually owed $3,500. They assess a penalty for substantial understatment under Section 6662(d). What is the size of this penalty? Select one: a. $1,000 b. $700 c. $500 d. $200

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