Question 67

Jasmine provided Benjamin, her tax preparer, with detailed check registers to compute her expenses. Benjamin, however, knowingly overstated the expenses on Jasmin's return. After adjustments by the examiner, the tax liability increased significantly. Benjamin charged Jasmine $1,000 for the tax preparation. Because Benjamin willfully disregarded information provided in the check registers, Benjamin is subject to a penalty in which amount?

A. $500

B $750

C. $1,000

D. $5,000