Sharon is an unenrolled preparer who has taken an undisclosed position on a client tax return that will decrease the client's tax liability. She believes she has a reasonable basis for this position, although substantial authority does not exist. The client paid Sharon $550 for tax return preparation. What is the potential preparer penalty?

a)  $5,000

b)  $ 275

c)  $1,000

d)  $ 0 (no potential penalty since Sharon believed she had a reasonable basis for this position)