IRS Form 843 Explained - 2023 Updates
If you have accrued interest, penalties, or fees on your unpaid tax debt, you may qualify to have those fees waived if you file IRS Form 843, Claim for Refund and Request for Abatement.
TABLE OF CONTENTS
- IRS Form 843, Claim for Refund and Request for Abatement, is a tax document used to either claim a tax refund or request abatement of particular taxes, additions to tax, fees, interest, and penalties.
- Taxpayers should use IRS Form 843 to claim a credit or refund involving items displayed on line 3 of the form, such as employment, estate, gift, excise, income, or fee, to request abatement involving certain excise taxes or FUTA tax, or to claim a refund or request abatement of additions to tax, interest, or penalties that coincide with the reasons listed on line 5a of the form.
What Is IRS Form 843?
IRS Form 843, Claim for Refund and Request for Abatement, is a tax document used to either claim a tax refund or request abatement of particular taxes, additions to tax, fees, interest, and penalties.
What Is A Penalty Abatement?
A penalty abatement is a situation in which a taxpayer receives a waiver from the IRS for a penalty that was accrued on their tax debt. The IRS sometimes approves penalty abatement requests and will release the applied fees if the first-time taxpayers fail to pay or fail to file their taxes, known as a first-time abatement (FTA) penalty waiver.
What Is IRS Form 843 Used For?
Taxpayers should use IRS Form 843 to claim a refund in the following situations:
- The refund involves the taxes or a fee displayed on line 3 of the form, such as employment, estate taxes, gift, excise, income, or fee. This does not include income tax withholding, income taxes or an employer’s FICA tax claim, or RRTA tax.
- The request for abatement involves certain excise taxes or FUTA tax.
- The claim for a refund or request for abatement of additions to tax, interest, or penalties that coincide with the reasons listed on line 5a of the form.
When Is IRS Form 843 Not Used?
If the taxpayer’s claim or request involves one of the following items, they should not file IRS Form 843 to amend a previously filed income tax return:
- An employer’s claim for FICA tax, RRTA tax, or income tax withholding.
- An overpayment of income taxes.
- An excise tax refund due to the nontaxable sale or use of fuels
- Excise tax overpayment as reported on IRS Form(s) 11-C, 720, 730, or 2290.
- Claiming a refund of tax lien fees, offer in compromise fees, or agreement fees.
Who Should Use IRS Form 843
Individuals should follow the instructions to file tax form 843 to correct a previously filed tax return if they meet one of the following guidelines:
- Taxpayers who have overpaid their tax liability due to their employer withholding too much tax from their wages, such as income tax, Social Security tax, or Medicare tax.
- Taxpayers who notice an IRS error, such as being charged with penalties, interest, or addition to tax that is not owed.
Does The Taxpayer Have To File IRS Form 843?
Although taxpayers can file this type of tax form by themselves, they can also have an authorized representative fill out and submit the document on behalf of the taxpayer. If an authorized representative files IRS Form 843, they must also attach IRS Form 2848, Power of Attorney and Declaration of Representative.
How To File IRS Form 843
Input Personal Information
Within the top section of tax form 843, taxpayers must input their personal identifying information, including their full name, Social Security number (SSN), or individual taxpayer identification number (ITIN), and if the taxpayer files jointly with their spouse, their SSN or ITIN must also be documented.
Fill Out IRS Form 843
Taxpayers must provide information about the type of taxes, fees, penalties, additions, and interest, including the tax period and the amount, within the first five sections of the form. The taxpayer must also indicate which original employment tax return was used with an explanation of why the taxpayer believes their claim or request should be approved, followed by their signature and the date at the bottom of the page.
Submit The Tax Form
Taxpayers can find the correct address to send their certified mail on their IRS notice.
If you need guidance for understanding the Internal Revenue Code (IRC), filing your tax returns, or understanding your IRS notice, contact the tax professionals at Ideal Tax to find answers to all of your tax questions.