What the IRS announced
In news release IR-2026-126, the IRS introduced two new revenue procedures. The first, Rev. Proc. 2026-33, establishes a separate error correction system for IRAs — the IRA Compliance Resolution System (ICRS). Modeled after the program that has operated for employer retirement plans for years, it is based on the SECURE 2.0 Act of 2022. The program will launch on May 1, 2027.
The second procedure, Rev. Proc. 2026-34, updates and streamlines the existing Employee Plans Compliance Resolution System (EPCRS) and replaces the previous Rev. Proc. 2021-30. It takes effect on October 22, 2026, and applies to, among others, qualified plans, 403(b) plans, SEPs, and SIMPLE IRAs.
What IRA errors can be corrected
The new program covers only four types of unintentional errors. Other issues are not included.
- Missed Required Minimum Distribution (RMD) — when, due to the fault of the financial institution maintaining the account, less than the required minimum distribution was paid out. The missing amount along with earnings must be paid out, and the IRS may waive the excise tax for failing to meet the RMD in justified cases.
- Opening the wrong account type — when a client requested a specific type of IRA and the institution opened a different type or a regular account. The funds are transferred to the correct account, treated as if it had been established on the date the erroneous account was opened.
- Error with an inherited IRA — when a non-spouse beneficiary, due to an institution’s mistake, withdrew funds or transferred them to a regular account. After correction, the funds go into a new inherited IRA, and the transaction is treated as a tax-free transfer.
- Exceeding the 60-day rollover deadline — when withdrawn money was not deposited back into the retirement account within 60 days, e.g., due to a natural disaster or other events beyond the owner’s control. Here, an institutional error is not a requirement.
Who files the application and how much it costs
The application can be filed by the financial institution maintaining the account or by the IRA owner themselves. Applications regarding the 60-day deadline must be filed exclusively by the account owner. The IRS recommends contacting the financial institution before filing. Currently, there is no option for self-correction — every case goes to the IRS.
Applications must be submitted exclusively online via Pay.gov on Form 15443, along with documents combined in a single PDF file. The IRS does not accept paper versions. The fee for a standard application submitted before January 1, 2028, is $3,500. For institutions reporting the same error for multiple clients, a group application is provided: $10,000 for the first 10 account owners plus $250 for each additional one, up to a maximum of $50,000.
The program will not be available to individuals who are not up to date with filing tax returns, generally individuals under IRS audit, or cases involving abuse. Anonymous applications are not accepted.
What about free options?
Existing free pathways remain in place. For a late rollover, you can still use the automatic waiver or self-certification in certain situations — based on Rev. Proc. 2003-16, 2016-47, and 2020-46, free of charge. Currently, individuals who do not fit these rules must request a private letter ruling from the IRS. In 2027, you will be able to choose this path or the new program, and starting in 2028, such applications are expected to go exclusively to the ICRS.
What this means for the Polish-American community
Many Polish-American families save for retirement in IRAs, and some individuals inherit such accounts from their parents. The new program is primarily a lifeline for mistakes made by a bank or brokerage firm. If you suspect such an error, gather your documents and correspondence with the institution now. Pay attention to the deadline when the wrong account type was opened: the application must be filed by December 31 of the year following the year the erroneous account was opened.
The IRS is accepting comments on the new rules until January 20, 2027, at regulations.gov (tracking number IRS-2026-1387). Details: IRS news release IR-2026-126 and full text of Rev. Proc. 2026-33 (PDF). This article is for informational purposes and does not constitute tax advice.
Before deciding on a paid application to the IRS, discuss your situation with a Polish-speaking financial advisor from the Polish Pages directory.
