What is a 'Correction Notice'

A correction notice indicates that a process or application contains errors or omissions that require corrections. Correction notices are typically issued by government agencies and may be issued for a variety of reasons. The government may want to clarify how organizations can participate in a government-sponsored program, ask applicants to update their applications because of missing or incomplete information, or address how organizations and individuals can comment on a proposed regulation. A correction notice is also sometimes called a notice of correction.

BREAKING DOWN 'Correction Notice'

Correction notices are sometimes required after complex legislation is enacted, when lawmakers and government agencies discover that changes are required during the implementation process, such as after the passage of the 2010 Affordable Care Act. Government agencies that sponsor insurance programs, such as the Centers for Medicare & Medicaid Services, provide guidelines to organizations that want to offer plans in federally facilitated health insurance marketplaces. These guidelines include operational and technical instructions to help organizations ensure that they are meeting all the necessary requirements, comply with certification standards and include information about the application process.

Because the application process can be complicated, agencies may have to issue a correction notice if the instructions were too vague or contained incorrect information. The correction notice will supersede the original instructions it is meant to correct. For federal programs, correction notices are published in the Federal Register, which can be viewed by the public and provides notifications about federal programs and regulations. Correction notices also appear in the Federal Register when typographical or clerical errors were made in previously published Presidential, Rule, Proposed Rule and Notice documents.

Corrections Notices for Organizations Applying for Government Programs

Organizations that submit applications to participate in a government program go through a multi-step review process. After submission, the application is reviewed to ensure that it has been completed correctly. If there is missing or unclear information, the reviewing agency will send out a correction notice. A correction notice issued to a business trying to obtain a license, for example, may indicate that the business failed to have the application notarized or forgot to sign the application document. The business will have the opportunity to fix the error and resubmit the application. In some states, such as New York, Limited Liability Company applicants are required to pay a statutory fee to file a Certificate of Correction. If the business makes further errors, it may have additional correction notices issued to it.

RELATED TERMS
  1. Delivery Notice

    A delivery notice is part of a futures contract that defines ...
  2. Error Of Principle

    An error of principle is an accounting mistake in which an entry ...
  3. Accounting Changes And Error Correction

    Accounting Changes and Error Correction refers to guidance on ...
  4. Notice Of Seizure

    A notice of seizure is a notice that the government has seized ...
  5. Adequate Notice

    Adequate notice is a written document that specifies in detail ...
  6. Mortgage Application

    A document submitted to a lender to borrow money to purchase ...
Related Articles
  1. Investing

    5 Stock Corrections Show More Pain Ahead

    The recent history of market corrections suggests that stocks have a longer road downward.
  2. Investing

    Distinguish A Stock Price Correction With A Price Trend

    We explain how you can use trend lines to help avoid market corrections.
  3. Insights

    The Right Decision When a Market Correction Is Due

    Markets keep hitting record highs. How should investors prepare for an inevitable correction?
  4. Investing

    How to Prepare Your Portfolio for a Market Correction

    With experts saying a market correction is coming, now is the time to prepare your portfolio.
  5. Investing

    Nasdaq Could Fall 15% or More: Morgan Stanley

    Morgan Stanley's Michael Wilson warned that it's tech's turn to feel some pain.
  6. Trading

    3 Key Signs Of A Market Top

    Learn the best ways to foresee market corrections and how to profit from them.
  7. Investing

    How to Invest During Market Growth

    Don't try to time the market, use these tips to instead to benefit from market highs and withstand market corrections.
  8. Personal Finance

    Watch Out For Changes In Credit Card Agreements

    If a credit card company changes its terms, you could pay a steep price. Find out how to stay informed.
  9. Investing

    Stock Investors Should Fasten Seat Belts for More Plunges

    Brace for more big stock price declines in the upcoming months, several market strategists warn.
Trading Center