; and (D) a copy of the applicable form to be used by the taxpayer to remit taxes owed with respect to the individual retirement arrangement because of the potential excess contribution, excess accumulation, or other error described in the notice. (4) Coordination with self-correction procedures A notice issued under this paragraph may not be considered as initiating an audit or otherwise demanding payment for purposes of section 4973(i) or 4974(e) of the Internal Revenue Code of 1986. 3. Reduction of excise taxes for voluntary correction of common IRA errors (a) Reduction in excise tax on excess contributions Section 4973 of the Internal Revenue Code of 1986 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 that was made to an individual retirement arrangement and that 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 defined 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 tax year that begins after the end of the tax year in which the tax under subsection (a) is imposed. . (b) Reduction in excise tax on failures To take required minimum distributions (1) In general Section 4974 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (e) Reduction of tax in certain cases (1) Reduction In the case of a