Under which of the following circumstances will a taxpayer be subject to an accuracy-related penalty? 1. If the taxpayer files an incorrect return and has failed to make a good faith effort to comply with the tax law. 2. If the taxpayer understates his tax liability by more than 5 percent of the correct tax liability. 3. If the taxpayer makes a substantial understatement associated with an estate or gift tax valuation. A) 1 only B) 1 and 2 C) 2 and 3 D) 1 and 3