a penalty of 5 000 or 50 of the income derived by the tax return preparer with respe 612839

A penalty of $5,000 or 50% of the income derived by the tax return preparer with respect to the return or claim applies to which action?

a. Incorrect. The penalty for an understatement of tax liability due to an unreasonable position that has not been disclosed on the return is $1,000 or 50% of the income derived.

b. Correct. The penalty for an understatement of tax liability due to willful or reckless conduct is $5,000 or 50% of the income derived.

c. Incorrect. The penalty for aiding and abetting an understatement of tax liability is $1,000 per document.

d. Incorrect. The penalty for failing to sign the tax return is $50 per failure, not to exceed $25,000 per calendar year.