Mr$.$ Stanhope has an MBA degree from Stanford University and has successfully operated a business for $18$ years. The revenue agent who audited Mr$.$ Stanhope's Form $1040$ discovered a glaring error resulting in a $$17,500$ underpayment of tax. When questioned by the revenue agent about the error, Mr$.$ Stanhope just shrugged and offered no logical explanation.

Required:

If the error resulted from Mr$.$ Stanhope$$s blatant disregard of a tax rule, compute the penalty for negligence.

Is Mr$.$ Stanhope's level of education and business experience likely to be a factor considered by the revenue agent in determining negligence?