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IRS sets $3,500 fee for new IRA error-correction program

The IRA Compliance Resolution System opens May 1, 2027 and covers four mistakes, with existing self-correction options still available.

$3.5KICRS filing fee per IRA correction submission

At a glance

  1. The program opens May 1, 2027, charges a $3,500 filing fee and covers four mistakes, a list the IRS says it may expand, according to Slott.
  2. The submission looks complicated enough that a CPA or attorney will likely need to be paid to prepare it.
  3. Unlike the correction program for employer plans, ICRS does not let IRA owners or custodians self-correct without going to the IRS, at least for now.

The IRS has published rules for the IRA Compliance Resolution System, a program that lets IRA owners, beneficiaries and custodians fix certain IRA errors by submitting a proposed correction to the IRS for approval and paying a fee, according to Ed Slott of IRAHelp.

The program opens May 1, 2027, charges a $3,500 filing fee and covers four mistakes, a list the IRS says it may expand, according to Slott. The submission looks complicated enough that a CPA or attorney will likely need to be paid to prepare it. Unlike the correction program for employer plans, ICRS does not let IRA owners or custodians self-correct without going to the IRS, at least for now. Existing self-correction programs for IRA owners remain in place and can still be used after May 1.

That leaves advisors a cheaper first question when a client surfaces a fixable IRA error: whether the mistake fits a program already in place before it justifies a $3,500 filing fee plus professional time.

Reported by the Tax & estate planning desk from Ed Slott — IRAHelp. Published . Corrections

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