The “Self-Correction” Program: Avoiding IRS Penalties for 2026 Errors

It is May 2, 2026. The IRS has expanded its “Voluntary Self-Correction” eligibility, allowing LLCs to fix minor filing errors without facing the massive automated penalties triggered by their new AI systems.

  • The Window: You have 60 days from the original filing date to submit a “Notice of Correction” to qualify for penalty abatement.
  • Eligible Errors: Includes misclassified contractor payments (Article #639) and minor discrepancies in BOI reporting (Article #630).
  • The Shark Insight: “The IRS is more lenient if you find the mistake before they do. In 2026, an ‘honest mistake’ caught early costs zero; the same mistake found by an IRS audit costs 25% in penalties. Run a monthly internal audit to stay in the safe zone.”

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