Question: In general, a substantial understatement of income tax exists when the understatement exceeds the greater of $5,000 or 10 percent of the correct tax for the year. If a taxpayer is claiming the Section 199A deduction, which of the following is correct regarding the 10 percent threshold: a. it is reduced to 3 percent b. it is reduced to 5 percent c. it is increased to 15 percent d. it is increased to 20 percent