IRS Launches the IRA Compliance Resolution System: What Rev. Proc. 2026-33 Means for IRA Custodians, IRA Owners, and Their Advisors

By: Angela M. Stockbridge

For years, plan sponsors have had the Employee Plans Compliance Resolution System (EPCRS) for fixing qualified plan mistakes, while IRA owners and custodians had no comparable formal program. That gap is now closing. In Revenue Procedure 2026-33, the IRS created a new correction program for IRAs called the IRA Compliance Resolution System (ICRS), which lets IRA custodians and IRA owners request correction of certain failures involving these tax-favored accounts. The new program takes effect May 1, 2027.

Background: The SECURE 2.0 Mandate

ICRS carries out section 305(c) of the SECURE 2.0 Act of 2022, which directed Treasury to expand EPCRS so that IRA custodians could address "Eligible Inadvertent Failures" with respect to an IRA. The IRS published the most recent version of EPCRS in the same Bulletin.

How the Program Works

For now, ICRS consists of a single component, the IRA Voluntary Correction Program (IVCP). **Self-correction of IRA failures is not available under ICRS at this time**. Treasury and the IRS expect to expand the program over time based on public comments.

Some key features:

• Who can apply.  The applicant may be either the IRA custodian or the IRA owner. The program covers traditional and Roth IRAs, including SEP IRAs and SIMPLE IRAs. Failures at the level of the SEP Arrangement or SIMPLE IRA Plan itself are excluded and should still be corrected under EPCRS.
• Electronic filing only.  Submissions must be made on Pay.gov using Form 15443, and paper submissions will not be processed.
• Model forms. Applicants may use Form 15745 (Model IVCP Compliance Statement) and Schedules 1 through 3 (Forms 15745-A through 15745-C), which provide standardized descriptions of failures and correction methods.
• No anonymous filings. Anonymous submissions are not allowed, although a representative may request an anonymous pre-submission conference.
• Tax filing compliance. To be included in a submission, an IRA owner must be current on all Form 1040 or Form 1041 filing obligations. IVCP is generally unavailable if the owner's return is under examination.
• Correction deadline. Corrections must be completed within 90 days of the compliance statement, or within 150 days for a group submission.

The Four Eligible Failures

At launch, IVCP covers only four defined categories of "Eligible Inadvertent Failures". A failure that is egregious, involves diversion or misuse of IRA assets, or is tied to an abusive tax avoidance transaction does not qualify.

1. RMD Failure.  Because of a service provider's failure, the amount distributed is less than the owner's required minimum distribution. The fix: The custodian distributes the missed RMDs, plus earnings, for every year a failure occurred.
2. IRA Establishment Failure. The service provider opens the wrong type of IRA, or a non-IRA account, instead of the one requested. The fix: Open the correct type of IRA and transfer the balance plus earnings; the new IRA is treated as established on the original date.
3. Nonspouse Beneficiary Distribution or Rollover Failure. Because of a service provider's error, a nonspouse beneficiary takes a taxable distribution or improper transfer instead of the required trustee-to-trustee transfer. The fix: Contribute the amount, adjusted for earnings and reduced by RMDs that would have been required, to a new Inherited IRA; the transaction is treated as nontaxable.
4. 60-Day Rollover Failure. An eligible rollover distribution is not rolled over within 60 days, and denying a waiver would be against equity or good conscience. The fix: Deposit the amount, less any RMDs that would have been required, into an eligible retirement plan, where it is treated as a rollover contribution. 

For the first three failures, the service provider must have had established practices and procedures that were routinely followed, and the failure must have resulted from an oversight or mistake in applying them. A 60-Day Rollover Failure, by contrast, does not have to result from a service provider error.

Advisors should also watch the deadline for IRA Establishment Failures. A submission will not be accepted after December 31 of the year after the year the incorrect account was opened.

A Major Shift for 60-Day Rollover Waivers

The rollover change may be the most significant practical development. Rev. Proc. 2026-33 moves requests for waivers of the 60-day rollover requirement from private letter rulings under Rev. Proc. 2026-4 to ICRS. During 2027, taxpayers may use either ICRS or the PLR process under Rev. Proc. 2027-4. Starting in 2028, the IRS expects these waivers to be available only under ICRS.

Waivers can be requested for eligible rollover distributions from IRAs, 401(a) qualified plans, 403(a) annuity plans, 403(b) plans, and governmental 457(b) plans. In deciding a request, the IRS will consider financial institution errors; death, disability, hospitalization, incarceration, foreign restrictions, or postal error; how the distributed amount was used; and how much time has passed. Only the IRA owner may apply for this relief. A custodian cannot.

Self-certification under Rev. Proc. 2020-46 and automatic waivers under Rev. Proc. 2003-16 remain available at no cost.

Excise and Additional Tax Relief

In appropriate cases, IVCP can also provide relief from:

• the section 4973 excise tax on excess contributions;
• the section 4974 excise tax on missed RMDs; and
• the 10% additional tax under section 72(t), if the improperly distributed amount, plus earnings, is returned to the IRA.

The applicant must specifically request this relief in the submission and explain why it should be granted. IVCP remains available for RMD failures even though a section 4974 waiver can be requested without a user fee under Treas. Reg. § 54.4974-1(g).

User Fees

For submissions filed before January 1, 2028, the fees are:

• Individual submission: $3,500.
• Group submission: $10,000 for the first 10 affected IRA owners, plus $250 for each additional owner, up to a maximum of $50,000.

Fees for later submissions will appear in Rev. Proc. 2028-4 and its successors.

Special Rules for Custodians and Group Submissions

A custodian may file for a single IRA owner or make a group submission. A group submission requires a systemic Eligible Inadvertent Failure affecting at least 10 IRA owners, with at least 10 IRAs implementing correction. Before filing, a custodian must notify affected owners and include only those who opt in. For group submissions, that notice must go out at least 45 days before filing. After correction, the custodian must give each owner a cover letter and a copy of the compliance statement within 30 days after the correction period ends.

Practical Limitations to Keep in Mind

• Refunds only for open years.Filing under IVCP does not extend the statute of limitations on refunds. Owners should think about filing protective refund claims.
• Custodian cooperation. A custodian that is not the applicant cannot be forced to accept corrective funds. The IRS recommends that owners confirm the custodian's cooperation before filing.
• Limited reliance. A compliance statement covers only the failures and years it identifies.

Comment Opportunity

Treasury and the IRS are asking for comments, including on additional failures that future versions of the program could cover. Comments are due by **January 20, 2027** and may be submitted at regulations.gov under docket IRS-2026-1387.

Takeaways

ICRS gives IRA owners and custodians their first formal, standardized way to fix common IRA errors, and it will eventually be the main route for 60-day rollover waivers. The program is narrow at launch, with only four eligible failures and no self-correction. Custodians, financial advisors, and tax professionals should now:

1. review their IRA administration procedures;
2. track any open errors that may qualify once the program begins on May 1, 2027; and
3. plan for 60-day rollover waiver requests to move away from the PLR process.