IRS Form 843 Claim for Refund and Request for Abatement, is an important tool for taxpayers seeking relief from certain IRS penalties, interest, and specific taxes. While it’s not the most widely known form, understanding when and how to use it can provide significant relief to individuals and businesses. However, it’s important to note that this form does not apply to all types of tax refunds or penalties.
We’ll explore when to use IRS Form 843 and outline how to complete the form, as well as where to send it once it’s finished. Need immediate assistance? Reach out to us at East Coast Tax Consulting Group today. Our team of experienced tax professionals has a wealth of knowledge in requesting penalty abatement and tax refunds, and is here to guide you through the process with confidence.
What Is IRS Form 843 and Who Should File
IRS Form 843 allows you to request a refund or abatement of certain taxes, interest, penalties, and fees. There are specific reasons for using Form 843, as well as a list of exclusions that require the use of a different form. You can use IRS Form 843 to claim a refund or abatement of the following taxes, penalties, and interest:
- Late filing or payment penalties may be waived due to reasonable cause or as a first-time abatement, which is a one-time penalty waiver for a taxpayer with a clean compliance history.
- Any tax besides income, estate, or gift tax, unless that tax has a designated refund request form.
- Failure to deposit penalties due to reasonable cause or incurred for the first time.
- Trust Fund Recovery Penalty
- Interest caused by an IRS error or delay.
- Interest, penalties, or additional taxes resulting from erroneous written advice provided by the IRS.
- Excess Social Security, Medicare, or Railroad Retirement Tax Act (RRTA) taxes withheld by your employer when they decline to issue a refund.
- Excess Tier 1 RRTA tax for an employee representative.
- Excess Tier 2 RRTA tax when you had more than one railroad employer, and you reached the limit for Tier 2 tax
- Social Security, Medicare, or RRTA tax erroneously withheld, but only if your employer refuses to make the adjustment to the amount withheld incorrectly.
- Branded prescription drug fee
- Penalty for misuse of dyed fuel
If you’re uncertain whether IRS Form 843 is the correct form for your situation, consult a tax expert for advice.
Other Options to Form 843
Form 843 may not be the appropriate choice for every situation.. Here are some instances where you should use a different form or can take a different approach:
- If you made a mistake on your tax return, use Form 1040-X to amend it rather than using Form 843.
- If you’re an employer seeking a refund of FICA, RRTA, and/or income tax withholding, use Form 941-X to amend your original return.
- If you’re requesting penalty abatement, you can call or write the IRS instead of filing this form.
- If you want to recover a refund taken due to your spouse’s unpaid taxes, file Form 8379 to request injured spouse relief.
- If an estate or trust is entitled to a refund due to an error on the original return, it can file an amended Form 1041, U.S. Income Tax Return for Estates and Trusts.
Please note that this is not a complete list. It’s important to remember that for most tax refunds, you must request the refund within three years of the return’s due date or within two years of the date the tax was paid. The IRS will not issue a tax refund if you miss these deadlines.
How to Complete Form 843
You must submit a separate Form 843 for each tax or fee type and for every applicable time period. For example, if you are requesting abatement of penalties for three previously filed income tax returns, you’ll need to file a separate form for each tax period.
You begin by checking off the box that indicates your reason for filing IRS Form 843. For instance, if you are requesting a refund of late filing and late payment penalties due to reasonable cause, you’ll want to check off the first box under the “Penalty” category.
Next, you need to provide your basic identifying information, such as your name, address, SSN, and phone number. If applicable, provide the same information for your spouse. Once that is done, continue to complete the form as follows:
- Line 1: Enter the tax period. Please note that you must submit a separate Form 843 for each tax period.
- Line 2: Enter the amount you would like refunded or abated.
- Line 3: Date of payments for which you’re requesting a refund.
- Line 4: Type of tax. Are you requesting a refund or abatement of employment, estate, gift, excise, income, fee, or civil penalty
- Line 5: Type of return or fee. Indicate the tax or fee for which you are claiming a refund or requesting an abatement. For example, employment, estate, income, excise, civil penalty, etc.
- Line 6: Internal Revenue Code Section that applies to the penalty, if applicable. For instance, IRC Section 6651 applies to penalties for late filing and late payment.
- Line 7: Reason for request. This may include IRS errors, reasonable cause, etc.
- Line 8: Written explanation. Provide a clear and concise narrative as to what happened and why you are making the claim.
You’ll need to sign and date the form, and you may want to attach documentation that supports your reason for requesting a refund or abatement.
Where to Send Form 843
The address you used to mail Form 843 to the IRS depends on why you’re using Form 843. If it’s in response to an IRS notice concerning taxes such as income, excise, or employment taxes, then you’ll mail Form 843 to the address provided on that notice. Otherwise, use the applicable address specified in the Form 843 instructions.
Get Help With Your Form 843 Refund or Abatement Request
Although Form 843 is relatively short, the process of requesting a refund or penalty abatement can be complex for most individuals who don’t regularly deal with taxes. Working with a tax professional can increase your chances of success and help ensure your request is accurate, timely, and well-supported.
The tax experts at East Coast Tax Consulting Group can help with your refund or abatement request. Contact our office at 561-826-9303 today to schedule a consultation.