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Wallace, a calendar year taxpayer subject to a 35% marginal tax rate, claimed a charitable contribution deduction in 2019 of $25,000 for a painting that
Wallace, a calendar year taxpayer subject to a 35% marginal tax rate, claimed a charitable contribution deduction in 2019 of $25,000 for a painting that the IRS later valued at $15,000. The applicable overvaluation penalty is:
a. $0.
b. $100 (minimum penalty).
c. $700.
d. $3,500.
e. None of the above.
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