We found that we filed CTRs on 1 of our business customers with an incorrect drivers license number for a conductor on some of the transactions. We automated our CTR process in February 2012 and reviewed all filed CTRs for the customer in our system back to February 2012 and found approximately 40 with this error. These were easy to review because of the automation. All required CTRs were filed with the correct amounts and the only error is with the ID info on some of the CTRs. I plan to write FinCEN for a determination on whether or not we need to correct these errors and I know that I have to complete a form showing them the number of CTRs with the error and the estimated time that it would take us to correct them if necessary. I cannot see how they would require the corrections since the errors are not material but who knows? My specific problem now is with the CTRs filed prior to our system implementation since we need to go through paper files to determine how many of those were also filed with the incorrect drivers license numbers. This would be a very time consuming and cumbersome process that I would like to avoid. Any thoughts or opinions on this?

Thank god the retention period is only five years.

Hey devsfan. We just ran across a very similar issue to what you're describing. The discrepancy, which is also on a piece of information that is usually not considered "critical", affects 100's of CTR's that we've filed over a long period of time. I also considered writing a letter to FinCEN, like you mention. But who/where is the Letter sent to? Their "Contact" info just gives phone numbers and email addresses. It's not really a "backfile determination", so the IRS does not need to be involved. A bit stumped here.

You do not need to write to FinCEN for a backfiling determination. Call the Helpline and tell them your problem. If they decide a backfiling determination is necessary they will send you a form. (The form is not available from their web site; they want to talk to you first.)

You will complete the form and send it in with a cover letter detailing the circumstances and I imagine that's where they will want you to describe your difficulties in estimating the number of paper forms involved and the amount of research time it would take to identify them.

My opinion is that an error in a DL number is material, but it's hard to comprehend why they would want you to amend all of the forms.

If you don't mind, please report back when you complete the process. This has always been a sort of a shadowy area of compliance and the IRS was completely unpredictable in its directives. I am told that FinCEN is more liberal with its determinations and that they actually have set, but unpublished, standards for when corrections are required! With the IRS it was a case by case hip shot.

Ouch, Ken's information is 1 day too late. I sent the letter yesterday to IRS Detroit Computing Center, Compliance Review Team
PO Box 32063 Detroit, MI 48232-0063 and I included a completed Backfiling or Amendments Checklist form that they provided me for a similar situation in the past. My letter outlined the facts of the case and made it clear that all required CTRs were filed, they were for the correct amounts, and the only error was with the DL number of the conductor. As AU indicated I can't see how this is a material error, but who knows? I don't anticipate hearing from them for a while. I wanted to get this done ASAP since we are having an examination in 2 weeks.

Since FinCEN is now responsible, I would go ahead and call despite the letter to the IRS, especially with an upcoming exam.

Agreed. Go ahead and call the Helpline. The address on the current forms is FinCEN's in Vienna, Virginia.

This thread contains an anecdote from a banker indicating that the IRS was more than willing to give him advice on the topic even though they no longer have jurisdiction. Go to FinCEN.

Called Helpline and left a message. I will update you when I hear back.

Helpline returned my call and after I explained the situation they sent me the Backfiling Checklist which is to me mailed to the Vienna VA address that Ken indicated above. Stay tuned.