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.

  1. Correction

    A reverse movement, usually negative, of at least 10% in a stock, ...
  2. Technical Correction

    A technical correction is a decrease in the market price of an ...
  3. 90-Day Letter

    90-Day Letter is an IRS notice sent after an audit asserting ...
  4. Error Resolution

    Error resolution is a procedure that allows consumers to dispute ...
  5. Error Of Principle

    An error of principle is an accounting mistake in which an entry ...
  6. Notice of Termination

    A notice of termination refers to how an employer notifies an ...
Related Articles
  1. Investing

    Why the Sell-Off Is a Correction, Not a Bear Market

    Despite fears that a bear market is underway, factors suggest no more than a temporary correction.
  2. Investing

    Stocks Face Miserable August as Correction Looms

    August has often been a rough month for stocks.
  3. Taxes

    Investopedia.org 2018 Funding Guidelines

    Investopedia.org is Investopedia’s initiative to support nonprofit organizations that are working to enhance financial empowerment.
  4. Insights

    The Right Decision When a Market Correction Is Due

    Markets keep hitting record highs. How should investors prepare for an inevitable correction?
  5. Retirement

    10 Best Smartphone Apps For Seniors

    Whether it's for health, news or personal finance, these apps can be useful for seniors. Best of all, they are free.
  6. Investing

    Why a Stock Market Correction May Lead to Overreaction

    Today's investors, complacent from low volatility and soaring indexes, may overreact to a correction.
  7. Taxes

    Terms & Conditions - Investopedia.org 2018 Grant Agreement

    These are the terms and conditions for Investopedia.org's 2018 grant agreement.
  8. Financial Advisor

    All About Impaired Risk Annuites and Insurance

    What are impaired risk insurance products and understanding life insurance rate classes, table ratings and flat extra premiums.
  9. Personal Finance

    What Gets You In Grad School: GPA Vs. Work History

    Grad schools usually take a holistic approach when evaluating applicants. That means it's a good idea to scrutinize every aspect of your application.
  10. Personal Finance

    Weekly Mortgage Applications Report for April 10

    Mortgage applications declined week over week as potential buyers react to climbing interest rates and home prices.
  1. What is a relative standard error?

    Find out how to distinguish between mean, standard deviation, standard error and relative standard error in statistical survey ... Read Answer >>
Hot Definitions
  1. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  2. Current Assets

    Current assets is a balance sheet account that represents the value of all assets that can reasonably expected to be converted ...
  3. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
  4. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  5. Cost of Debt

    Cost of debt is the effective rate that a company pays on its current debt as part of its capital structure.
  6. Depreciation

    Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account ...
Trading Center