Rev. Proc. 2026-33: The New IRS Program to Fix IRA Mistakes
Rev. Proc. 2026-33 creates ICRS, a way to correct IRA errors caused by service providers. Which failures qualify, the $3,500 fee and the May 1, 2027 start.
Rev. Proc. 2026-33 creates the IRA Compliance Resolution System, or ICRS, a program that lets an IRA custodian or an IRA owner ask the IRS to approve the fix for certain IRA mistakes, mainly those caused by an error of a service provider. It takes effect on May 1, 2027, charges a $3,500 fee for most requests filed before 2028, and does not replace the free routes that already exist.
What the program is, and when it starts
The IRS announced the procedure on October 22, 2026, in news release IR-2026-126, alongside Rev. Proc. 2026-34, which updates the separate correction system for employer retirement plans. The release says the new IRA system “permits IRA custodians and IRA owners to request correction of certain eligible inadvertent failures caused by service-provider errors.” Congress required it in section 305(c) of the SECURE 2.0 Act, which told the Treasury to expand its plan-correction system so custodians could address inadvertent IRA failures (Rev. Proc. 2026-33, section 1.02).
For now, ICRS consists of one program, the IRA Voluntary Correction Program (IVCP). Section 1.03 adds a sentence worth reading slowly: “Self-correction of IRA failures is not available under ICRS at this time.” The only way into the program is a submission that the IRS reviews.
The effective date is stated in section 10: “This revenue procedure is effective May 1, 2027.” The text does not say whether anyone may file earlier, and it does not say what happens to a mistake discovered before that date, beyond the points covered in the last section below.
Who can apply
The procedure calls the person who files the “Applicant,” and defines it as the IRA custodian or IRA owner who makes the submission (section 2.01). A custodian is a bank or other person authorized to hold assets for IRA owners, including a nonbank trustee that meets Treasury Regulation section 1.408-2(e) (section 2.07).
The definition of “IRA owner” is wider than most people expect. It covers the individual for whom the IRA was originally set up and that person’s beneficiaries, including, after death, the people or trusts named to share in the account, or the estate if none is named (section 2.08). For the 60-day rollover failure only, it also includes a participant in certain employer plans, such as a 401(a) qualified plan, a 403(b) tax-sheltered annuity or a governmental 457(b) plan. The term “IRA” includes Roth IRAs, SEP IRAs and SIMPLE IRAs (section 2.02), and “Inherited IRA” is defined to include one held by an estate or trust (section 2.06).
Two limits apply to who may file for what. A 60-day rollover request must come from the owner: Appendix A, section 2.04(3), says that “the Applicant cannot be an IRA Custodian.” An owner may name an authorized representative to file on their behalf (section 6.07). A custodian may file for a single owner or, in a group submission described below, for many.
The four failures that qualify
IVCP covers only the failures listed in Appendix A, section 2. Section 4.01(1) is blunt on the point: “At this time, IVCP is not available to correct any failures outside of the failures specified in section 2 of Appendix A.” The table below puts each failure’s definition, conditions and correction method side by side.
| Failure (section) | What it means | Extra conditions | Correction method (Appendix A) |
|---|---|---|---|
| RMD Failure (2.15; App. A 2.01) | Because of a Service Provider’s failure, less is distributed from the owner’s IRA or IRAs in the year than the RMD under section 408(a)(6) or (b)(3). | The provider had established practices and procedures, formal or informal, reasonably designed to promote compliance, routinely followed, and the failure came from an oversight or mistake in applying them. | For an IRA account, the custodian distributes the missed RMDs for all prior failure years, with Earnings from the date of the failure to the distribution. Each year’s amount is the adjusted account balance divided by the applicable distribution period. For an IRA annuity, missed payments are distributed under state law. The custodian issues a Form 1099-R for the year of correction showing the amount as taxable. |
| IRA Establishment Failure (2.16; App. A 2.02) | The owner asked a Service Provider for a specific type of IRA, but the provider set up a different type of IRA or a non-IRA account. | Same “established practices” condition as above. Must be submitted as soon as practicable, and never after December 31 of the year following the year the wrong account was opened. | The correct type of IRA is established. The custodian moves the balance placed in the wrong account, with Earnings, into it. The new IRA is treated as established on the date the wrong account was opened. |
| Nonspouse Beneficiary Distribution or Rollover Failure (2.17; App. A 2.03) | Because of an inadvertent error by a Service Provider, a nonspouse beneficiary believed a distribution from a decedent’s IRA or an Inherited IRA could be rolled over tax-free. Instead of the required trustee-to-trustee transfer into an Inherited IRA, the beneficiary received the money or it went into a non-inherited account, creating taxable income. | The applicant must explain the specific errors or advice that led to the belief. Written communications with the provider can support it; summaries of oral conversations may be given less weight. | The beneficiary contributes the amount to a new Inherited IRA in the same beneficiary’s name. The transfer may not exceed the original distribution adjusted for Earnings, minus any RMDs that would have been required. It is then treated as a trustee-to-trustee transfer made at the time of the original distribution. |
| 60-Day Rollover Failure (2.18; App. A 2.04) | An eligible rollover distribution, or an IRA distribution under section 408(d)(3), was not rolled over within 60 days, and refusing a waiver “would be against equity or good conscience, including casualty, disaster, or other events beyond the reasonable control of the IRA Owner.” | No Service Provider error is required (App. A 2.04(2)). The owner files, not the custodian. | The amount not rolled over is transferred to an eligible retirement plan, capped at the original distribution minus any RMDs that would have been required had it gone by direct transfer. It is then treated as a rollover contribution. |
The IRA Establishment example in Appendix A, section 2.02, shows the stakes: an owner asks for a traditional IRA, the provider opens a Roth IRA, and the owner deducts the contribution anyway. The deduction is disallowed and income tax is owed. For the difference between the two account types, see our guide to Roth versus traditional IRAs.
On the 60-day failure, the IRS specialist weighs “all relevant facts and circumstances,” and Appendix A lists four considerations: errors committed by a financial institution; inability to complete the rollover because of death, disability, hospitalization, incarceration, restrictions imposed by a foreign country, or postal error; how the distributed amount was used, for example whether a check was cashed; and the time elapsed since the distribution. The usual rollover limits still apply. A waiver does not lift the rule that an IRA-to-IRA rollover is not permitted if the owner made another IRA rollover in the prior one-year period, and for an IRA distribution the same property that was distributed must be rolled over. Our guide to direct and indirect rollovers explains how the 60-day clock starts in the first place.
What “eligible inadvertent failure” requires
Section 2.10 defines an Eligible Inadvertent Failure as one of the four failures above, and says whether one occurred “depends on all relevant facts and circumstances.” Three of the four definitions turn on a Service Provider, a term section 2.09 defines as a service professional with a contract or agreement with the owner or relating to the IRA, “including, but not limited to, an IRA Custodian, a certified financial planner, a fiduciary financial adviser, a certified public accountant, or a licensed attorney.”
Beyond that, section 2.10 excludes any failure that “is egregious, relates to the diversion or misuse of IRA assets, or is directly or indirectly related to an abusive tax avoidance transaction.” The procedure defines an abusive transaction as any listed transaction under Treasury Regulation section 1.6011-4(b)(2) and any other transaction the IRS identifies as abusive. If the IRS finds the owner was or may have been a party to one, it may refer the owner for examination even while a submission is pending (section 5.06).
What the program will not fix
Several limits come from different parts of the text.
- Failures outside Appendix A. Section 4.01(1), quoted above.
- Most excise-tax events. Section 3.04(1) says IVCP is not available for events that carry an excise tax or additional income tax, with three exceptions: the section 4973 excise tax on excess contributions, the section 4974 tax on missed RMDs, and the 10% additional tax under section 72(t). Relief from those is available only if the tax is directly related to the failure being corrected, and the applicant must request it in the submission.
- Failures that the Code already lets you fix. Section 3.03 says that, generally, IVCP “is not available to correct failures that can be corrected under the Code and related regulations,” then carves out the 4974 waiver and the 60-day cases described below.
- SEP and SIMPLE plan failures. Failures relating to a SEP arrangement or SIMPLE IRA plan go to the employer-plan system, although failures relating to SEP IRAs and SIMPLE IRAs themselves can be corrected under IVCP (section 4.01(4) and (5)).
- Owners behind on their taxes. To be included, an owner “must currently be in compliance with all tax filing obligations” for Form 1040 series returns or Form 1041 (section 4.03).
- Owners under examination. Section 4.02, discussed below.
- Any case the IRS declines. Under section 4.01(3), the IRS may decline to make IVCP available “in the interest of sound tax administration.”
- Issues needing a closing agreement. Section 1.05 points to the Voluntary Closing Agreement Program, run by Employee Plans Rulings and Agreements, for federal income or excise tax issues that ICRS cannot resolve, and refers to section 4.04 of Rev. Proc. 2026-4.
One more practical limit comes from section 4.01(6). If the compliance statement requires money to be moved into an IRA, a custodian that is not the applicant “is not required to accept the funds,” and the IRS cannot compel it. The applicant can use the statement to assure that custodian it may rely on it, and section 5.11 recommends that an owner contact the custodian before submitting.
What it costs
| Filed | Regular submission | Group submission (custodians only) |
|---|---|---|
| Before January 1, 2028 | $3,500 | $10,000 for the first 10 affected IRA Owners, plus $250 for each owner above 10; maximum $50,000 |
| After December 31, 2027 | Set in Appendix A of Rev. Proc. 2028-4 and its annual successors; not stated in this text | Same source |
These figures come from sections 7.01 and 7.02. Section 7.01(1) sets a single “regular submissions” fee and does not make a separate allowance for 60-day rollover requests. The fee is due when the request is filed, and “If the appropriate user fee is not paid, the IVCP submission will not be processed” (section 6.05). If the IRS decides a submission is seriously deficient or a compliance statement would be inappropriate, the fee is refunded only when no substantive processing has occurred (section 5.07(2)). If the IRS and the applicant cannot agree, the matter is closed and the fee is not returned (section 5.07(7)).
A group submission is available only when the failures “result from a systemic Eligible Inadvertent Failure that affects at least 10 IRA Owners and results in at least 10 IRAs implementing correction” (section 5.12(3)(b)). The custodian must first notify each owner that they may opt in, and the owner’s IRA is included only if the owner responds in time and is current on tax filings (section 5.12(1)(a)).
How a submission is filed
Everything happens online. “Paper IVCP submissions are not permitted and will not be processed” (section 6.01(2)). In plain terms, the steps are these (section 6.03):
- Create a Pay.gov account and find Form 15443, the Application for IRA Voluntary Correction Program.
- Combine every required document into one PDF, which may not exceed 15 MB. Anything that will not fit is faxed, with the applicant’s name and the Pay.gov Tracking ID, to the number given in section 6.03(7).
- Sign Form 15443, upload the PDF and pay the fee.
- Keep the “Pay.gov Payment Confirmation: Form 15443.” Its Tracking ID is the IRS control number, and the IRS does not mail an acknowledgement letter (section 6.08). If no confirmation is generated, the submission did not go through.
The PDF must contain (section 6.04): a full description of each failure, the years it occurred and the name and account number of the IRA; an explanation of how and why it happened, with any supporting documents; a step-by-step narrative of the proposed correction, with calculations and an estimated cost; the method for calculating Earnings; and, if relief is wanted from the section 4973 or 4974 excise tax or the 10% additional tax under section 72(t), a specific request for it with reasons. A custodian also describes the procedures it will change to prevent a repeat. A Form 2848 is added if someone represents the applicant or signs and files for it (a Form 8821 only lets someone inspect and receive confidential information, and cannot authorize filing), and when someone signs and files for the applicant, the applicant, not the representative, must sign a statement under penalties of perjury. Section 6.10 lists the order the IRS prefers and notes that a submission is processed faster in that order. The owner’s Social Security number goes in for an individual owner.
Applicants may use the IRS model forms, Form 15745 and Schedules 15745-A to 15745-C, which give standardized failure descriptions and correction methods. A schedule can be used only if it applies “without modification” to the applicant’s situation (section 6.02). Submissions cannot be anonymous (section 5.10), though a representative may request an anonymous pre-submission conference before filing. Such conferences are held only at the IRS’s discretion, and the feedback is advisory only (section 5.02).
What happens after filing
The text gives deadlines but no processing time. If the IRS needs more information, the applicant generally has up to 21 calendar days to respond, and missing that window can mean the matter is closed, the fee kept and the case referred for examination (section 5.07(4)). If the IRS agrees to the correction, it sends a compliance statement. It may ask the applicant to sign and return it within 21 days (section 5.07(8)). The applicant then has 90 days from the date of the compliance statement to carry out the corrections, or 150 days for a group submission, unless the IRS approves a written extension request made before the period ends (section 5.07(9)). The IRS may later require verification that the corrections were made (section 5.07(11)).
How it relates to the missed-RMD excise tax and Form 5329
The excise tax under section 4974 falls on the owner. Appendix A, section 2.01, gives an example: with a $10,000 RMD and $8,000 distributed, the owner owes the tax on the $2,000 difference, “[u]nless an exception under section 4974(d) or Treas. Reg. § 54.4974-1(g) applies.”
ICRS does not replace the existing waiver. Section 3.03 says IVCP is available “even if a failure can be corrected outside of IVCP with no user fee under Treas. Reg. § 54.4974-1(g),” and directs readers to Publication 590-B and the Instructions for Form 5329 for how to request that waiver. Our guide to Form 5329 and the missed-RMD penalty walks through that route. Inside ICRS, the applicant must ask for the 4974 waiver and explain why the failure happened, and “in appropriate cases” the IRS decides whether to approve it and records any approval in the compliance statement (section 3.04(3)). The text does not discuss the reduced SECURE 2.0 rates for the tax, so it supports no comparison of cost or odds between the two routes.
The correction also has a tax cost of its own: the custodian reports the corrective distribution on Form 1099-R as taxable in the year of correction (Appendix A, section 2.01(4)).
How it relates to 60-day self-certification
For missed rollovers, the Rev. Proc. changes the paperwork more than the rules. Section 1.01 says it moves waiver requests away from private letter rulings under Rev. Proc. 2026-4. For 2027, requests may be made “under either ICRS or Rev. Proc. 2027-4 (which is expected to be published in 2027-1 IRB). Starting in 2028, it is anticipated that requests for such waivers will only be permitted under ICRS.”
The two free routes survive. Section 3.03 says IVCP may be used for failures that could be handled by self-certification under Rev. Proc. 2020-46 or an automatic waiver under Rev. Proc. 2003-16, and that those procedures “are available at no cost.” Self-certification under Rev. Proc. 2020-46 works differently from an ICRS waiver in ways that matter:
| Self-certification (Rev. Proc. 2020-46) | ICRS waiver (Rev. Proc. 2026-33) | |
|---|---|---|
| Who receives it | A written certification given to the plan administrator or IRA trustee | A submission to the IRS on Pay.gov |
| Cost | None | $3,500 for submissions before 2028 |
| Reasons | A list of twelve reasons, such as a financial institution error, a misplaced check, severe damage to the principal residence, or death or serious illness in the family (section 3.02(2)) | A facts-and-circumstances review (Appendix A, section 2.04(2)) |
| Timing after the reason ends | Contribution as soon as practicable; made within 30 days is a safe harbor (section 3.02(3)) | Not stated in Rev. Proc. 2026-33 |
| Status | ”A self-certification is not a waiver by the IRS” (section 3.04(3)); the taxpayer may report a valid rollover unless later informed otherwise, and the IRS may disagree on examination | A compliance statement from the IRS that binds the IRS and the applicant on the matters it covers (section 5.09) |
A self-certification also has a prior-denial limit: the IRS must not have previously denied a waiver request for a rollover of all or part of the same distribution (Rev. Proc. 2020-46, section 3.02(1)). Neither route changes whether the money was eligible for rollover in the first place. The IRS says in Rev. Proc. 2020-46 that a taxpayer may not roll over a distribution that is a required minimum distribution, or if the taxpayer is a nonspouse beneficiary (section 3.04(1)).
Examination, and what the compliance statement protects
Section 2.12 defines “Under Examination” broadly. It covers a Form 1040 series return or Form 1041 under examination by the IRS or under investigation by IRS Criminal Investigation, “any verbal or written notification of an impending IRS examination or of an impending referral for an examination,” and cases currently in Appeals or litigation arising from an examination. In that situation ICRS is “generally not available” (section 4.02). If an owner comes under examination while a submission is pending, the owner “should inform the revenue agent” of the pending submission (section 5.05(2)).
Filing is not an examination, and it does not shield you from one. Section 5.05(1) says that consideration under IVCP does not preclude a later examination “with respect to matters that are outside the compliance statement,” but that statements describing failures are made only for purposes of IVCP and “will not be regarded by the IRS as an admission of a failure for purposes of any subsequent examination.” Only failures raised by the applicant, or found by the IRS while processing, are covered (section 5.04), and the IRS will not look for others.
If you receive a compliance statement and meet its conditions, the IRS will not treat the IRA as failing the applicable IRA requirements because of that failure (section 8.01), and the owner will not be subject to income or excise taxes, if applicable, on account of the failures it describes (section 5.08(1)). The statement’s reliance “is limited to the failures and years specified.” It also depends on there being no misstatement or omission of material facts and on timely correction (section 5.08(3)). The procedure also treats correction as complete only if made for all taxable years, but a correction made for a closed year will not cause that year’s tax to be redetermined (section 3.02).
Tax already paid, or tax still owed
Appendix A, section 1.04, tells owners what to do with their returns after correction. It sorts the situations into four.
| Situation | What the text says to do |
|---|---|
| You filed and paid tax on the amount involved in the failure | If the refund statute of limitations (section 6511) is still open, file an amended return requesting a refund, attaching the compliance statement if possible. Perfect any protective claim you filed. If the period is closed, you cannot file for a refund. |
| You filed and should have paid tax on the failure, but did not | Keep the compliance statement. If the IRS asks why the distribution was not reported, give it a copy. |
| You have not yet filed for the year, and would have owed tax but, after correction, do not | Do not report the original distribution as taxable. Consider asking the custodian to ensure it is not reported as taxable on Form 1099-R. Keep the statement for any IRS inquiry. This paragraph does not apply to RMD Failures. |
| You owe tax as a result of the correction | File an original or amended return reporting and paying the tax and any interest. “If the IRA Owner does not report and pay the tax owed, then the compliance statement is not valid.” |
Refunds depend on timing. Section 4.01(2) says refunds are available only for open years, that the filing of a submission “does not extend the statute of limitations on refunds,” and that if the period expires while the submission is processed, the applicant gets no refund for that year unless a protective claim was filed. IVCP specialists do not process refunds; an owner owed one files Form 1040-X or an amended Form 1041. Even so, relief for a closed year may remain: the text notes that a nonspouse beneficiary whose refund period has closed might still contribute the distributed amount to a new Inherited IRA and receive basis for it.
If you discovered the mistake today
Everything above takes effect on May 1, 2027, and the text is silent on several points that a person holding a problem now would want answered. It does not say whether a request can be filed before the effective date, it does not toll any deadline, and it does not say whether a mistake found before May 1, 2027 can be corrected under ICRS afterward. It contains no instruction to wait.
What it does support is this:
- The older routes are still the current ones. The 4974 waiver on Form 5329 and, for a missed rollover, automatic waivers and self-certification are described as available at no cost, and a private letter ruling under Rev. Proc. 2026-4 is the route that ICRS is replacing for 60-day waivers (sections 1.01 and 3.03).
- The IRA-establishment clock is short. A submission “in no event will … be accepted after December 31 of the year following the year in which the incorrect account was established” (section 4.01(7)). The text’s own example is an account opened August 15, 2026, with a last filing date of December 31, 2027. Applying the same rule to an account opened in 2025 gives December 31, 2026, which falls before the program starts. The text does not say how that case is treated.
- Refund deadlines keep running. Filing does not extend the statute of limitations, and a protective claim for refund is the tool the text names for preserving a refund while a submission is pending (section 4.01(2)). The procedure refers readers to Publication 556 for protective claims.
- Records matter. What the IRS asks for is listed in section 6.04 and Appendix A: for a 60-day failure, for example, a copy of the Form 1099-R if available (section 2.04(3)), and for a nonspouse beneficiary failure, written communications with the provider (section 2.03(2)).
- Talk to the custodian. Section 5.11 recommends that an owner contact the custodian before submitting, so that it can carry out the correction.
None of this is a substitute for advice on your own facts, and the text itself notes in Appendix B that owners may contact a tax professional.
Comments
The Treasury and IRS invite comments, including on additional failures that future versions could cover. Written comments are due by January 20, 2027, referencing Revenue Procedure 2026-33, and may be filed through regulations.gov using docket number IRS-2026-1387 (section 11). The IRS may consider later comments if doing so does not delay guidance.
Sources
- Internal Revenue Service, Revenue Procedure 2026-33, IRA Compliance Resolution System, including Appendix A (eligible failures and correction methods) and Appendix B (sample cover letter): https://www.irs.gov/pub/irs-drop/rp-26-33.pdf
- Internal Revenue Service, news release IR-2026-126 (October 22, 2026), “Treasury, IRS update retirement plan correction program and establish correction program for individual retirement accounts”: https://www.irs.gov/newsroom/treasury-irs-update-retirement-plan-correction-program-and-establish-correction-program-for-individual-retirement-accounts
- Internal Revenue Service, Revenue Procedure 2020-46 (self-certification for late rollover contributions): https://www.irs.gov/pub/irs-drop/rp-20-46.pdf
- Internal Revenue Service, Rollovers of retirement plan and IRA distributions: https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions
Quick answers
Can I file an ICRS request today?
The revenue procedure says it "is effective May 1, 2027." The text does not say whether the Pay.gov filing can be made before that date, and it gives no transition rule for mistakes discovered earlier. Treat the program as not yet open and check IRS.gov before relying on it.
Does ICRS cover a required minimum distribution I simply forgot to take?
Not on the text as written. Section 2.15 defines an RMD Failure as one that occurs "due to a failure by a Service Provider," such as a custodian, financial planner, accountant or attorney. The procedure does not describe ICRS relief for a shortfall caused only by the IRA owner. The existing waiver request for the section 4974 excise tax, made on Form 5329, stays available outside the program (section 3.03).
How much does an ICRS submission cost?
For submissions filed before January 1, 2028, the user fee for a regular submission is $3,500 (section 7.01(1)). For submissions filed after December 31, 2027, the fees will be set in Appendix A of Rev. Proc. 2028-4 and its annual successors, which the text does not yet state. The fee is paid on Pay.gov when you file, and a submission without the fee is not processed.
I missed the 60-day rollover deadline. Do I have to use ICRS?
No. The procedure says automatic waivers and the self-certification procedures of Rev. Proc. 2020-46 remain available and "are not affected by the ability to request a waiver of the 60-day rollover requirement" under ICRS (Appendix A, section 2.04(2)). The IRS news release calls them available at no cost. ICRS is the route that replaces private letter ruling requests for these waivers.
Does a compliance statement protect me from an audit?
Only for the failures and years it names. Section 5.09 says the compliance statement is binding on the IRS and the applicant for the specific tax matters identified, but "does not preclude or impede an examination" of matters outside it, even for the same tax year. It is also conditioned on no misstatement or omission of material facts and on completing the corrections (section 5.08(3)).
What if my tax return is already under examination?
Section 4.02 says ICRS is generally not available if the owner's Form 1040 series return or Form 1041 for any year is Under Examination. For a missed 60-day rollover, alternate relief may still be available: section 4.02 points to section 4 of Rev. Proc. 2020-46, under which the IRS may grant a waiver during an examination if it determines the owner qualifies.
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