Form 843

How to Use IRS Form 843 for Tax Refunds and Abatements

Key Takeaways

Form 843 is used to claim a refund of certain assessed taxes or to request abatement of interest or penalties applied in error by the IRS.
The form must be filed within two years from the date when taxes were paid or three years from the date when the return was filed, whichever is later.
A separate form must be filed for each type of tax or fee, and for each tax year.
The IRS may impose a 20% penalty on the excessive amount for claims on excessive refunds.

What Is Form 843: Claim for Refund and Request for Abatement?

Form 843 is a crucial IRS tax form that allows taxpayers to claim refunds for specific taxes or request the removal or abatement of interest and penalties applied due to inaccuracies or errors. Filing Form 843 can be essential if you've been wrongfully assessed taxes or if your employer has mistakenly withheld too much Social Security or Medicare tax.

We'll provide a straightforward explanation of who can file Form 843, the types of taxes and penalties it covers, and a step-by-step process for filing it correctly to ensure that you receive rightful tax reimbursements and reliefs.

Uses and Applications of Form 843

Form 843 can be used to ask the Internal Revenue Service for abatement of certain taxes other than income, including:

Estate or gift taxes

Interest or penalties due to IRS error or delays or incorrect written advice from the IRS

To seek a refund of Social Security or Medicare taxes that were withheld in error and for which the employer will not adjust the over-collection

Form 843 cannot be used to amend a previously filed income or employment tax return to:

Claim a refund of agreement, offer-in-compromise fees, or lien fees

Request an abatement of gift or estate taxes

Claim a refund or abatement of Federal Insurance Contributions Act (FICA) tax

Claim a refund or abatement of Railroad Retirement Tax Act tax

Claim a refund or abatement of income tax withholding

Eligibility for Filing Form 843

There are several reasons a taxpayer can file Form 843. This includes if a taxpayer's employer withholds too much income, Social Security, or Medicare tax from a paycheck and will not make any adjustments. This form can also be filed by a taxpayer's authorized representative.

Another reason to file this form may be as a result of IRS error or delay. This happens when a taxpayer is wrongly assessed interest, penalties, or additions to tax that are not owed. On these occasions, a taxpayer can request that the IRS fix the error(s) by filing a claim for refund or abatement.

A separate Form 843 must generally be filed for each type of tax or fee and for each tax year.

Important

If the IRS believes a taxpayer claims an excessive refund amount, it can add a penalty equal to 20% of the amount determined to be excessive.

Filing Form 843: A Detailed Guide

Form 843 requires basic information such as name, address, Social Security number, tax period, tax type, and return type. It requires a statement of the facts and issues as to why you are entitled to a refund or abatement. Penalty abatement requests require you to write the Internal Revenue Code (IRC) section number of the penalty on Line 4. You can find this section number on the IRS notice you received. Then, you must choose a reason for your request in Section 5a. The choices are:

Interest was assessed as a result of IRS errors or delays

Erroneous written information from the IRS

Reasonable cause or another reason other than erroneous written advice

You can write an explanation of your request in Section 7. Remember to support your reasons with evidence and computations. The IRS allows you to attach additional pages if you need more space.

Form 843 is available on the IRS website.1

The form must be filed within two years from the date you paid the taxes or three years from the date the return was filed, whichever is later.

Important Considerations for Filing Form 843

If the IRS denies your claim by sending a statutory notice of claim disallowance—or if six months pass without any action—you can petition the U.S. District Court or the U.S. Court of Federal Claims.2 3 You can also file a protective claim before the expiration of the statute of limitations to preserve your right to make a claim for a refund. Protective claims and real claims have the same legal effect.

Internal Revenue Services. "Form 843." Accessed Feb. 11, 2021.

Internal Revenue Service. "Publication 556 (09/2013), Examination of Returns, Appeal Rights, and Claims for Refund." Accessed Jan. 16, 2020.

Treasury Inspector General for Tax Administration. "Additional Documentation Is Needed to Support Office of Appeals, Penalty Abatement Decisions." Accessed Jan. 16, 2020.

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