IRS Form 843

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

Form 843, Claim for Refund and Request for Abatement, allows you to request the removal of IRS penalties and request refunds of certain types of taxes. But this form does not apply to all types of tax refunds and/or penalties. 

This guide explains when to use IRS Form 843 and outlines how to fill out this form and where to send it once it’s complete. Want help now? Contact us today at W Tax Group. Dealing with the IRS can be confusing and frustrating, but we can handle everything for you, including Form 843 requests. Our tax attorneys have extensive experience requesting penalty abatement and tax refunds.

Key Takeaways:

• File Form 843 to request penalty abatement for reasonable cause and first-time penalty abatement.
• Use IRS Form 843 to request refunds for IRS errors that led to interest or penalties.
• Don’t use Form 843 to correct your tax return; file Form 1040-X to amend your return.
• Don’t use Form 843 to request FICA, RRTA, or income tax withholding refunds; file Form 941-X or 940-X.
• Fill out the form completely, explain why you need relief, and include supporting documents.
• Use the IRS address on the notice you received to send in your Form 843, or ask a tax professional where to file it.

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 abatement form 843 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.

Who Should Use Form 843?

You can use Form 843 abatement to claim a refund if you incurred the following taxes and penalties:

• Late filing or payment penalties due to reasonable cause such as death, illness, or disaster.
• Late filing or payment penalties that you incurred for the first time in three years.
• Failure to deposit penalties due to reasonable cause or incurred for the first time.
• 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
• 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 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.

Examples of When to File Form 843

Here are the main situations where you should file Form 843:

• You incurred a late fee on a previously filed return, but you had reasonable cause for being late.
• You are requesting first-time penalty abatement, as you have otherwise good tax compliance.
• 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.

So, a Form 843 example would be if you received a failure-to-file penalty on a late return, but you weren’t able to file on time because of an illness. You can submit this form with any relevant information to request abatement for reasonable cause. You should also submit supporting documents about the illness that prevented you from filing.

Alternatives to Form 843

Form 843 is not the right option in every situation. Here are some cases where you should use a different form:

• If you’re requesting first-time penalty abatement, you can call the IRS instead of filing this form.
• If you made an error on a tax return you filed, use Form 1040-X to amend your return instead of using Form843 abatement. 
• If your employer withheld too much FICA or RRTA tax, ask them for a refund first, and only use Form 843 if they refuse to refund you.
• If you’re an employer who needs a refund of FICA, RRTA, and/or income tax, use Form 941-X or 940-X to amend your original return.
• If you want to get back a refund that was seized due to your spouse’s unpaid debts, file Form 8379 to request injured spouse relief.
• To request a refund of estate or trust taxes, amend the Form 1041 that you originally filed.
• To request a tentative refund due to a business credit, 1256 contract loss, or Section 1341(b)(1) adjustments, use Form 1045 (Application for Tentative Refund).

If you’re not sure which IRS form to use, talk to a tax expert who can walk you through the process of resolving your issue.

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:

Step 1: Provide Relevant Information

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.

Step 2: Provide Your Reason for the 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. 

Step 3: Explain Your Claim

Finally, in the last section, you explain why you are making a claim for a refund. Make sure to outline detailed information about why you are making this claim. You can also attach relevant documents to strengthen your explanation, such as documentation that supports your reasonable cause claim.

Where to Send Form 843

Next, you’ll wonder where to send Form 843. The IRS has several different addresses that taxpayers can use to file Form 843. The right address depends on the situation. 

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. 

Mistakes to Avoid

To get the best results using Form 843, be aware of the following issues and try to avoid them.

• Incomplete info – Review the form carefully before you send it, and consider having someone else look it over for missing information. 
• Not including supporting documents – If you’re requesting a refund due to reasonable cause or incorrect IRS advice, make sure to attach proof to your form, and keep a copy of everything you send in case it gets lost.
• Wrong form – Remember, 843 abatement is not designed for every situation. Consult with a tax pro to ensure you’re using this form correctly.
• Filing too late – The IRS only gives you three years from the filing deadline or two years from the date you paid (whichever is later) to request a refund. Don’t miss this deadline. 
• Incorrect mailing address – Double check the mailing address to avoid processing delays, and use tracking when you send the letter. That way, even if it does get lost, you have proof that you filed it on time by putting it in the mail.

When Will I 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 few more months.

Get Help Requesting Refunds and Abatement With Form 843

Form 843 is only seven lines long, so it shouldn’t take you long to complete. However, most people who don’t deal with taxes on a regular basis often find this form confusing.

If you need help requesting tax refunds and penalty abatements from the IRS, we can help at W Tax Group. 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 will help you get relief from your tax troubles.

FAQs About Form 843 

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.

Where Do I Mail Form 843?

You will typically mail 843 Form to the IRS using the address provided on the notice the agency sent you. The addresses provided in the section above will also help you locate the right office if you don’t have a notice to reference. Talk to a tax expert if you still have questions about where to file Form 843.