Ari timely filed his 2021 income tax return on April 1, 2022. Ari did not report the winnings from a casino poker game, as he honestly believed that those winnings were not taxable. The IRS has determined that his negligent failure to report the income resulted in an additional income tax liability of $1,000. What is the amount of Ari's tax penalty?

A)

$1,000

B)

$100

C)

$200

D)

$750