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The M-274 Handbook: the 8 I-9 questions employers get wrong (2026)

USCIS's M-274 Handbook for Employers is the authoritative guide to completing Form I-9 — and the source of the edge-case rules that trip up HR every day. The receipt rule, photocopies, name changes, remote hires, minors, List B/C combinations, reverification, and correcting errors: what the handbook actually says, and how each mistake becomes a $2,861-per-form penalty during an ICE audit.

What the M-274 actually is

The M-274, Handbook for Employers is USCIS's official, plain-language guide to completing Form I-9. It is where the regulations become day-to-day procedure — and where the edge cases that generate audit findings are spelled out.

Most I-9 penalties do not come from employers ignoring the form. They come from getting a specific handbook rule wrong — a receipt that was never replaced, a green card that got reverified, a remote hire examined over video. Below are the eight questions that produce the most findings, and what the handbook actually says.

The 8 questions employers get wrong

1
Can I accept a photocopy of a document instead of the original?
No. The M-274 is clear that employees must present original, unexpired documents for Section 2 — the one narrow exception is a certified copy of a birth certificate, which is a List C document. A photocopied driver's license, Social Security card, or permanent resident card does not satisfy the examination requirement. Accepting a copy is a substantive error because you did not actually examine a valid document.
2
What is the "receipt rule" and how long does it last?
If an employee cannot present a required document at the time of hire, the handbook allows a receipt showing they applied to replace a lost, stolen, or damaged document. The receipt is valid for 90 days from the date of hire, and the employee must present the actual replacement document by the end of that window. Receipts for a brand-new (not replacement) document are not acceptable, and the 90-day clock is a common miss — the reverification-style deadline lapses quietly.
3
An employee's name changed since I completed their I-9. Do I redo the form?
No — you do not complete a new Form I-9 for a legal name change. The handbook says you may (as a recommended practice) note the new name in Section 3 / the reverification and rehire block, but you are not required to update it and you never re-examine documents solely because a name changed. Creating a fresh I-9 for a name change is itself an error because it disturbs the original hire-date record.
4
How do I complete Section 2 for a remote hire I never meet in person?
Unless you are enrolled in E-Verify and use the DHS alternative (remote) examination procedure, the M-274 requires a physical, in-person examination of original documents by an authorized representative. That representative can be anyone you designate — but you, the employer, remain liable for their errors. A video call or emailed scans do not meet the physical-examination standard outside the alternative procedure.
5
A minor or someone with a disability has no List B photo ID. Now what?
The handbook provides special rules. For a minor under 18 who cannot present a List B identity document, a parent or guardian may complete the Section 1 attestation and the List B field is handled with the special-placement instructions (e.g., school record, clinic record, or "Individual under age 18"). Similar special rules apply for certain individuals with disabilities. Treating a minor's I-9 like an adult's — and marking it deficient for a missing List B — is a documented handbook mistake.
6
Can an employee present one List B and one List C document, or does it have to be List A?
Either path is valid. The employee chooses: one document from List A (identity AND work authorization together), OR one document from List B (identity) plus one from List C (work authorization). You cannot require a specific document or demand List A — that is document abuse. Rejecting a valid List B + List C combination because you preferred a passport is one of the anti-discrimination traps the handbook and IER both flag.
7
When does the handbook require reverification — and when does it forbid it?
You reverify in Section 3 when a List A or List C document showing temporary work authorization expires (for example an Employment Authorization Document). You do NOT reverify U.S. citizens, lawful permanent residents who presented a Permanent Resident Card (even an expired one after the auto-extension rules), or List B identity documents when they expire. Reverifying a green card or a List B document is a frequent over-documentation error.
8
I found an error on an old I-9. How does the handbook say to fix it?
You correct — you do not erase, white-out, or backdate. Draw a single line through the incorrect information, enter the correct information, then initial and date the correction with the actual date you made it. If a whole section was left blank, complete it now and note why it is being completed late. Concealing a late correction by backdating is worse than the original error and undermines a good-faith defense.

Four handbook mistakes that become audit findings

Each of these looks like a completed form. That is exactly why they survive until an inspection — and why a file-by-file check against the M-274 is the only reliable way to surface them.

Treating the M-274 as optional guidance
Why it matters: The handbook interprets the binding regulations. ICE and OCAHO routinely cite the M-274's positions when evaluating whether an error is substantive or technical — so "we didn't know the handbook said that" is not a defense.
Letting the 90-day receipt window lapse
Why it matters: A receipt that is never replaced becomes an unremedied Section 2 defect. Because it looks complete on the form, it is exactly the kind of error a self-audit catches and a rushed onboarding misses.
Over-documenting — demanding List A or extra documents
Why it matters: Requiring specific documents or more than the form calls for is document abuse under IER rules, a separate liability track from paperwork penalties. The handbook's List A / List B+C rule exists precisely to prevent this.
Reverifying documents the handbook says never to reverify
Why it matters: Reverifying green cards, U.S. passports, or List B IDs signals a systemic misunderstanding auditors extrapolate across your whole file set — one bad habit becomes a pattern finding.

2026 penalty context

A handbook-level error that rises to a substantive violation carries a 2026 penalty of $288–$2,861 per form. Because handbook edge cases — receipts, reverification, remote hires — recur across many employees, one misunderstood rule can multiply into six-figure exposure before size and good-faith adjustments are applied.

Penalty amounts are set by DHS regulation and adjusted for inflation. The figures on this page reflect 2026 levels — verify the current range at freshverdict.com/i9-civil-penalties-2026. For how the receipt and reverification deadlines work, see the I-9 reverification guide.

Frequently asked questions

What is the M-274 Handbook for Employers?

The M-274 is USCIS's official Handbook for Employers, Guidance for Completing Form I-9. It is the authoritative plain-language interpretation of the I-9 regulations — covering how to complete each section, which documents are acceptable, the receipt and reverification rules, remote and minor procedures, and how to correct errors. When an employer and an auditor disagree about whether something was done correctly, the M-274 is usually the reference both sides turn to.

Is following the M-274 legally required?

The M-274 is guidance rather than a statute, but it interprets the binding I-9 regulations that carry per-form civil penalties. In practice, deviating from the handbook's stated procedures is how substantive violations occur, and ICE/OCAHO regularly rely on the handbook when assessing violations. FreshVerdict is a compliance tool, not a law firm — treat the handbook as the operational standard and consult counsel for edge cases.

How often does the M-274 change?

USCIS revises the handbook periodically to match Form I-9 editions, the acceptable-documents lists, and procedural changes such as the remote examination alternative for E-Verify employers. Always confirm you are working from the current edition and the current Form I-9 version before relying on any specific instruction, because an outdated procedure can itself create a finding.

What does a handbook mistake actually cost?

Substantive and uncorrected I-9 paperwork violations carry 2026 penalties of $288–$2,861 per form, with the exact amount driven by the violation rate, employer history, business size, and good-faith factors. Because handbook edge cases (receipts, remote hires, reverification) recur across many employees, a single misunderstood rule can multiply into six-figure exposure before adjustments.

Can a self-audit catch handbook-level errors?

Yes — and it is exactly where they surface. Handbook errors like an unreplaced receipt, an over-documented file, or an improper reverification look complete on the form, so they hide in plain sight until someone checks the file against the actual M-274 rule. A structured self-audit is the practical way to find them before an ICE Notice of Inspection does.

Check your I-9s against the handbook rules

FreshVerdict's free I-9 audit tool flags the handbook edge cases — unreplaced receipts, improper reverifications, over-documentation, and missing corrections — and gives you a plain-English report. No account required.

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