Errors in CARF reports happen. Understanding correction procedures ensures you can address issues properly while maintaining compliance and demonstrating good faith.

When to Correct

Submit corrections when:

  • Material errors in reported data
  • Missing reportable users
  • Incorrect transaction values
  • Wrong user information
  • Authority feedback requires changes
Voluntary Correction Benefits

Self-identified corrections typically receive more favorable treatment than errors discovered by authorities. Prompt correction demonstrates good faith compliance.

Correction Types

Full Replacement

Submit complete corrected report replacing original.

Incremental Correction

Submit only changed or new records using OECD correction codes.

Deletion

Remove erroneously reported records.

Technical Process

  1. Identify records requiring correction
  2. Prepare corrected data
  3. Generate correction XML with appropriate message type
  4. Reference original submission
  5. Submit through normal channel
  6. Verify acceptance
Reference Required

Correction reports must reference the original DocRefId. Maintain careful records of all submissions to enable accurate corrections.

Documentation

Maintain records of:

  • Original error description
  • Date discovered
  • Correction details
  • Submission confirmation

Timing Considerations

  • Submit corrections promptly
  • Some jurisdictions have correction deadlines
  • Voluntary corrections may reduce penalties

Conclusion

Have clear correction procedures in place. Prompt, accurate corrections demonstrate good faith compliance and can significantly reduce penalty exposure.

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