IRS Form 843

IRS Form 843 (Claim for Refund and Request for Abatement)

Form 843 allows you to request a refund of IRS penalties and certain types of taxes. This form has a very specific purpose, and it does not apply to all types of tax refunds. This guide explains when to use IRS Form 843. Then, it outlines how to fill out this form and where to send it once it’s complete.

Want help now? Then, contact us today. Dealing with the IRS can be confusing and frustrating, but we can handle everything for you. Our tax attorneys have extensive experience requesting penalty abatement and tax refunds. Otherwise, keep reading to learn more.

What Is IRS Form 843?

IRS Form 843 allows you to request a refund or abatement of certain taxes, interest, penalties, and fees. You should use this form if you have incurred penalties due to reasonable cause or interest due to IRS delays or erroneous written advice. You can also use this form if your employer refuses to give you a refund for excess social security or Medicare tax withheld from your paycheck.

You cannot request refunds for income, gift, or estate taxes with this form, but you can request refunds of penalties related to those taxes.

Refunds You Can Claim with Form 843

You can use Form 843 to claim a refund for the following taxes and penalties.

• Interest, penalties, or additions to tax caused by an IRS error or delay.
• Interest, penalties, or additions to tax caused by incorrect written advice from the IRS.
• Penalties or addition to tax due to reasonable cause or any other reason allowed under the law.
• Excess social security, Medicare, or RRTA tax withheld by your employer when your employer refuses to give you a refund.
• Excess Tier 1 Railroad Retirement Tax Act (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.
• Branded prescription drug fee.
• Section 6715 penalty for misuse of dyed fuel.

Note that in some cases, an individual can apply for a refund of a certain tax using Form 843, but employers cannot use this form to claim a refund of the same type of tax. For instance, an employee can use this form to request refunds of overpayments of social security or Medicare taxes, but an employer cannot use this form to request refunds for Federal Insurance Contributions Act (FICA) taxes.

When to File Form 843 (Claim for Refund and Request for Abatement)

Here are the main situations where you should file Form 843 (Claim for Refund and Request for Abatement):

• You incurred a late fee on a previously filed return, but you had reasonable cause for being late.
• You incurred penalties or interest due to IRS delays, erroneous written information, or errors, and you want to request abatement.
• Your employer withheld too much social security or Medicare tax, and they refuse to refund the tax to you.
• Your employer withheld too much RRTA tax, and you want to make a claim for a refund. This can apply if you are an employee representative but your employer withheld Tier 1 RRTA tax or if you overpaid Tier 2 RRTA tax due to having two railroad employers.

Alternatives to Form 843 (Claim for Refund and Request for Abatement)

You can only use Form 843 to request refunds of certain taxes and penalty abatement. You cannot use Form 843 to request a refund of lien fees or offer in compromise fees. Unfortunately, you also cannot use this form to request abatement of interest on an employment tax return even if you received erroneous written advice from the IRS.

How to Fill Out Form 843

You must file a separate Form 843 for every type of tax or fee and for every time period. For instance, if you want to request abatement on penalties incurred on two previously filed income tax returns, you will need to file a separate form for each tax period. Here are the instructions.

To get started, you need to note your name, address, and Social Security Number or Employer Identification Number if you’re filing Form 843 for a business. Then, the first three lines request the following details:

• The tax period for which you are requesting a refund or abatement.
• The amount of the refund or abatement.
• The type of tax or the tax related to the fee/penalty you incurred.

If you’re requesting abatement from a penalty, you should note the Internal Revenue Code related to that penalty on line four. You should have received an IRS notice that outlines the code related to the penalty. If not, you may want to consult with a tax professional before you submit your request.

On line five, you need to note why you are due a refund. The options include 1) you were assessed interest due to IRS errors or delays, 2) you incurred a penalty due to erroneous written information, or 3) you had reasonable cause or another reason allowed under the law. 

The final option includes issues such as filing late due to a natural disaster or a death or serious illness in the family. If none of these reasons apply to your situation, the Internal Revenue Service says to skip this line.

Line six requests the number of the tax return related to the request for a refund. Finally, in the last section, you explain why you are making a claim for a refund.

How to File IRS Form 843

The IRS has several different addresses that taxpayers can use to file Form 843. The right address depends on the situation. Here’s an overview:

If you’re responding to an IRS notice, send the form to the address on the notice. Otherwise, you should typically send the form to the IRS service center where you’re supposed to send your tax return. However, if one of the following scenarios applies, you should use the address noted:

Refunds related to estate tax matters

Internal Revenue Service

Attn: E&G

Mail Stop 824G

7940 Kentucky Drive

Florence, KY 41042-2915

In response to Letter 4658 about a branded prescription drug fee:

Internal Revenue Service

Mail Stop 4921 BPDF

1973 N. Rulon White Blvd.

Ogden, UT 84201

In response to Letter 5067C about the annual fee on health insurance providers’ final fee:

Internal Revenue Service

Mail Stop 4921 IPF

1973 N. Rulon White Blvd.

Ogden, UT 84201

Processing will be delayed if you send the form to the wrong address. However, if you send Form 843 to an address that has changed, the IRS will forward the form to the correct address.

How Long Does It Take to Get a Response to Form 843

Processing time varies for this form. You can generally expect a response in a month or two, but if the IRS is backlogged, it can take a lot longer.

FAQs About Form 843 (Claim for Refund and Request for Abatement)

Can You Use Form 843 to claim a refund on excess income tax withholding?

No, if your employer withholds too much income tax, you can claim a refund when you file your income tax return. To get your employer to withhold less tax from your paycheck, give them an updated Form W4 (Employer’s Withholding Certificate).

Can You Use Form 843 to claim a refund for gift or estate taxes?

No, you cannot use Form 843 to claim a refund of gift or estate taxes. However, you can use this form to request a refund of penalties related to gift or estate tax returns. If you overpaid income tax for an estate, you can request a refund by amending Form 1041 (U.S. Income Tax Return for Estates and Trusts).

Can You Use From 843 to Claim Refunds Related to the Railroad Retirement Tax Act?

Employees can use Form 843 to request a refund if their employers withheld too much RRTA tax from their paychecks. When you apply, you should attach a copy of your W2 showing the excess RRTA tax and a letter from your employer noting any amounts that they have already reimbursed to you. Employers cannot use this form to request refunds of RRTA tax.

Can You Use Form 843 to Request a Refund for the Section 6676 Penalty?

Yes, you can use this form to request abatement of the Section 6676 penalty if you have reasonable cause. The 20% 6676 penalty applies when you make an excessively incorrect claim for a refund or credit.

Get Help Requesting Refunds and Abatement With Form 843

Form 843 is only seven lines long. According to the IRS website, it should take you about an hour and 35 minutes to read the instructions and fill out this form. However, most people who don’t deal with taxes on a regular basis often find this form confusing.

If you want help requesting tax refunds and penalty abatements from the IRS, we can help. Our tax attorneys have extensive experience guiding people to the right resolution options for their back taxes and penalties. To learn more, contact us today. We’ll start with a conversation about your situation, and then, we’ll help you get relief from your tax troubles.