Which Statement Is False with Respect to Tax Treaties

Which statement is false with respect to tax treaties?

A) There is a $1,000 penalty per failure to disclose on the tax return where there is a direct treaty conflict for an individual.
B) There is a $10,000 penalty per failure to disclose on the tax return where there is a direct treaty conflict for a corporation.
C) Treaties override the Code when in conflict.
D) Treaties may override a Code section when in conflict.
E) None of the above.