IRS Form 843 Request for Abatement: What It Is and How to Use It

Summary

IRS Form 843, Claim for Refund and Request for Abatement, is used to request a refund of taxes paid in error or an abatement of penalties. Common reasons for using Form 843 include penalty abatement for first-time offenses, erroneous withholding by employers, and IRS mistakes or delays. It’s important to review eligibility requirements and provide accurate personal details, tax information, and an explanation of the request. The form should be signed, dated, and sent to the IRS address provided on the notice or in the form instructions. Other IRS forms may be necessary for different refund or amendment requests.

What Is IRS Form 843 Request for Abatement?

You may need to file Form 843 if you want relief from IRS penalties or if you need to request a refund of certain taxes. This form is most commonly used to request penalty abatement, but it can be used for certain types of tax refunds. To help you out, this guide explains when and how to file this tax form.

When to use IRS Form 843:

• When you are requesting abatement of penalties that were incurred in error
• If it’s your first time getting a penalty (or the first time in the last four years)
• When you are requesting a refund of certain types of taxes, including taxes withheld by your employer in error and your employer will not adjust the overpayment.

This IRS penalty abatement form is one of several forms related to abatement or refund requests, so make sure it’s the right form for your situation. A New York State tax professional at the Timothy S. Hart Law Group is ready to help you find and file the right tax form. Contact us for help today.

This guide walks you through when you would need IRS Form 843 and the steps to take to get it completed properly.

When Should You Use IRS Form 843?

The full name of IRS Form 843 is Claim for Refund and Request for Abatement. Thus, you can use this IRS penalty waiver form to request abatement or a tax refund. Here are examples of situations that apply to Form 843:

• Abatement of taxes other than income, estate, or gift tax
• Social Security or Medicare taxes that shouldn’t have been withheld by your employer, but the employer won’t adjust the mistake
• Penalties and interest you’ve accrued that were due to an IRS error, an IRS delay, or wrong advice from the IRS
• First-time penalties for late payment or late filing
• Penalties incurred due to reasonable cause such as death, illness, or disater

Employers should not use this form to request abatement of FICA, RRTA, or income tax withholding. You also cannot use this form to amend a tax return you previously filed when trying to claim a refund of certain fees, request estate or gift tax abatement, or claim other certain types of abatement.

Note that some forms of penalty abatement can be approved over the phone when you call the IRS. These may include first-time penalty abatement, reasonable cause, and statutory exception. However, if the IRS employee you talk with states that they cannot approve your request over the phone, you may need to then submit Form 843 to officially submit your claim for review.

What If the IRS Made a Mistake?

Taxpayers may need to file Form 843 in relation to errors the IRS made. Here are the scenarios when this might be the case:

• You were assessed tax additions, penalties, or interest because of an IRS error or delay.
• You were assessed penalties or tax additions because of erroneous written advice you received from the IRS.

If these situations happened to you, use Form 843 to claim a refund or abatement of those additional costs that you shouldn’t have to pay due to IRS mistakes.

How to File Form 843

As with any IRS form, there are certain best practices to keep in mind, as well as details you’ll need to successfully complete the document. Follow these steps to fill out and file Form 843 properly:

Review the Eligibility Requirements

At the top of Form 843, the IRS lists out reasons you should file this form and not another. Review the instructions carefully, and consult with a tax pro if you think you may be better off using a different form.

Provide Your Personal Details

The next section asks for basic information such as name, address, and Social Security number. Make sure your information aligns with what you included on your tax return and that everything is correct before submitting.

Enter the Applicable Tax and Request Information

Next, include the tax period applicable to your request, the amount to be refunded or abated, and the type of tax or penalty involved in your request. You will then need to select an option regarding your reasoning related to interest, penalties, and tax addition requests: either that interest was assessed due to IRS errors, the IRS provided wrong advice, or you have reasonable cause. Select the type of return your request applies to on line six.

Provide an Explanation

The next section gives you space to explain your request or claim. Provide all applicable details about why you are making this request. You can attach a separate document if the space on the form isn’t sufficient for your information.

Sign, Date, and Send the Form

Make sure you sign and date the form, and if it’s related to a joint return, your spouse should also sign and date the form. If you’re sending this form as a response to an IRS notice you received, you will send the form to the address provided on that notice. Otherwise, view the full Form 843 instructions to find the right address.

Other Forms You May Need to File

There are many other IRS forms that could relate to your issue as far as refunds or amendments. Here is a list the IRS provides of different tax forms that may be the right option instead of Form 843:

• Amended tax return: If you need to change amounts on your tax return or make certain elections after you’ve already filed, you’ll usually need to file an amendment to your individual income tax return using Form 1040-X.
• Form 8379: This form is the Injured Spouse Allocation form and would apply if you need to claim your tax refund that was used to cover your spouse’s tax debts.
• Form 8959: When you need to change information to Medicare Tax, use the Additional Medicare Tax form, 8959.
• Form 1045: This form applies to individuals, estates, or trusts and is the Application for Tentative Refund. This is to apply for a refund related to tax overpayment because of the claim of right adjustment or the “carryback” of a loss or unused credit.

If you filed Forms 941, 943, 944, or 945, make sure you use the amendment version of those forms to make any corrections — i.e., Form 941-X, 943-X, and so on. Ask a tax expert if you’re unsure what type of IRS form to complete.

Other Tips for IRS Form 843

So, what else do you need to know about Form 843? Consider these additional tips before filing your form:

• Send separate forms for each request: The IRS requires that you send in different Forms 943 for each tax period or fee.
• File within three years: You have three years from the date you filed your tax return or two years from the date you paid the tax, whichever is later, to claim a refund or abatement with Form 843.
• Know your appeal rights: If the claim on Form 843 is denied by the IRS, you still have recourse. You can petition the court or file a protective claim within the statute of limitations if you don’t agree with the IRS’s decision. Note that you can also do this if the IRS hasn’t responded to your request within six months.
• Gather your applicable documents: When filling out Form 843, you’ll need to have documents that support your claims. For example, if you are making a claim that you have reasonable cause for abatement, you may need to show evidence such as doctor or court records or information about an occurrence like a natural disaster.
• Talk to a tax professional: There are many different forms out there, so make sure Form 843 aligns with your request. Talk to a tax expert when you have questions about how to deal with your abatement or refund request.

To get the outcome you’re seeking with Form 843, make sure you’re prepared and informed about the purpose of this form and the information you need to complete it. Always ask a tax expert when in doubt.

When to Work With a Tax Attorney

Many taxpayers decide to handle abatement requests or refund claims on their own. However, these matters get complicated fast. You always want to be sure you’re using the right form and taking the right steps to rectify your tax situation.

This means working with a tax attorney is usually the best way forward. An expert will explain tax law to you, examine your unique situation, and advise you on next steps. This ensures you are doing everything possible to claim your refund or abatement.

The team at Timothy S. Hart Law Group is ready to help you with Form 843 or any other tax issue you’re experiencing. We can help you navigate problems such as unpaid taxes, unfiled tax returns, tax liens or levies, or tax audits.

Contact our law office to learn more about our tax services.

FAQs about IRS Form 843

What Is IRS Form 843?

Form 843 is Claim for Refund and Request for Abatement. Some taxpayers may need to submit this form when requesting a refund of taxes they paid in error or requesting an abatement of penalties in certain cases.

Why Would I Need Form 843?

IRS Form 843 is used to request a refund or abatement, including when the IRS made a mistake or gave you wrong advice that led to penalties or overpayment of taxes. You may also need to use this form if you’re requesting a refund of overpayment because of an employer withholding too much tax and failing to correct the overpayment.

How Do I Request Penalty Relief from the IRS?

When the IRS notifies you of a penalty, start by following the instructions on the notice you receive in the mail. Often, the IRS will provide a phone number you can call, and certain abatement requests can be made easily over the phone. If the agent isn’t able to approve your request that way, you can request abatement using Form 843, Claim for Refund and Request for Abatement.

What If the IRS Made a Mistake with a Tax Penalty?

You may be able to rectify an IRS mistake with Form 843. Fill out this form if the IRS made a mistake regarding a penalty or overpayment of tax, or the agency provided you with wrong advice regarding your taxes.