; and (F) tax consequences for early distributions. (2) Examples of common errors by taxpayers with respect to the laws and regulations described in paragraph (1) and instructions on how to avoid such errors. (b) Reduction in excise tax on excess contributions Section 4973 is amended by adding at the end the following new subsection: (i) Reduction of tax in certain cases (1) Reduction In the case of a taxpayer who— (A) corrects, during the correction window, an excess contribution which was made to an individual retirement plan and which resulted in imposition of a tax under paragraph (1) or (3) of subsection (a), and (B) submits a return, during the correction window, reflecting such tax (as modified by this subsection), the first and second sentences of subsection (a) shall be applied by substituting 3 percent for 6 percent each place it appears. (2) Correction window For purposes of this subsection, the term correction window means the period beginning on the date on which the tax under subsection (a) is imposed with respect to an excess contribution, and ending on the earlier of— (A) the date on which the Secretary initiates an audit, or otherwise demands payment, with respect to the excess contribution, or (B) the last day of the second taxable year that begins after the end of the taxable year in which the tax under subsection (a) is imposed. . (c) Reduction in excise tax on failures To take required minimum distributions Section 4974, as amended by this Act, is further amended by adding at the end the following new subsection: (e) Reduction of tax in certain cases (1) Reduction In the case of a taxpayer who— (A) corrects, during the correction window, a shortfall of distributions from an individual retirement plan which resulted in imposition of a tax under subsection (a), and (B) submits a return, during the correction window, reflecting such tax (as modified by this subsection), the first sentence of subsection (a) shall be applied by substituting 10 percent for 25 percent . (2) Correction window For