Various embodiments for data error recovery in a tape storage system, by a processor device, are provided. In one embodiment, a method comprises, in a tape storage system using a hardware-initiated and microcode-initiated iterative decoder, initializing a microcode cut/paste algorithm on a buffered dataset by copying the buffered dataset to a reserved buffer segment; wherein the buffered dataset is a most corrected buffered dataset developed by at least one iterative decode cycle; and the buffered dataset, updated C1 data row error flags, and a correction status recovered by the at least one iterative decode cycle are cut and pasted over a working copy of a dataset resident in the reserved buffer segment.