Fred is preparing a 2022 joint return for new clients Dick and Jane. He advised the clients to take a particular position on their tax return. Fred believes there is a 75% probability the position will be sustained if audited by the IRS. If the position is not sustained, an accuracy- related penalty and a late payment penalty would apply. What is Fred's responsibility regarding disclosure of the penalties to Dick and Jane?

a)  Fred is responsible for disclosing the risk of both penalties to Dick and Jane.

b)  Fred is responsible for disclosing only the late payment penalty to Dick and Jane.

c)  Fred is responsible for disclosing only the accuracy-related penalty to Dick and Jane.

d)  Fred has no responsibility to disclose any potential penalties to Dick and Jane because the

position will probably be sustained upon audit.