What is Form 843?
Form 843 or Claim for Refund and Request for Abatement form is an Internal Revenue Service (IRS) document that U.S. taxpayers use to claim a refund of certain assessed taxes or to request an abatement of interest, penalties, and fees, applied by the IRS.
In general, Form 843 is used by taxpayers to request an abatement of tax other than income, estate, or gift tax and to ask an abatement due to an IRS error or delay or written advice from the IRS. For refunds, use the form to request a refund of penalties you have paid, of taxes withheld by your employer in error — only if your employer refuses to do the necessary adjustments, and of penalties for misuse of dyed fuel.
You may file Form 843 within two years from the date when taxes were paid or three years when the return was filed, whichever is later. For each type of tax or fee for each tax year, you need to file a separate Form 843.
You cannot use Form 843 to request a refund of income tax or Additional Medicare Tax. In addition, you cannot use it to amend a previously filed income or employment tax return; to claim a refund of agreement fees, offer-in-compromise fees, or lien fees; and to request a refund of Federal Insurance Contributions Act (FICA) tax, Railroad Retirement Tax Act (RRTA), or income tax withholding.
While you can file Form 843 without difficulties, take note that the U.S. federal tax agency can give you a penalty if it believes that you are claiming an excessive refund amount. In general, a penalty is 20% of the amount determined to be excessive. You or your authorized representative can file Form 843. If an authorized representative will file the form for you, the original or copy of Form 2848 or Power of Attorney and Declaration of Representative should be attached.
How to Fill Out Form 843?
Form 843 is a single-page legal form. Just like other tax forms, it is straightforward and only asks information relevant to the transaction.
Follow the instructions below to complete Form 843 accurately.
Provide your full legal name. If a joint return, provide the full legal name of your spouse.
Your social security number
Provide the SSN assigned to you.
Provide your current address.
Spouse’s social security number
If a joint return, provide the SSN of your spouse.
Employer identification number (EIN)
Provide the unique EIN of your employer.
Name and address shown on return if different from above
If your name and address on your return are different from the ones you have provided above, provide them here.
Daytime telephone number
Provide the telephone number that the IRS can use to contact you.
Number 1 — Period
Provide the tax period for which you are making the claim for refund or request for abatement. Prepare a separate Form 843 for each tax period or fee year.
Number 2 — Amount
Provide the amount to be refunded or abated.
Number 3 — Type of tax or fee
Mark the appropriate checkbox to determine the type of tax or fee to be refunded or abated. The claim can also be related to interest, penalty, or addition to tax. You may select Employment, Estate, Gift, Excise, Income, or Fee.
Number 4 — Type of penalty
Provide the applicable Internal Revenue Code section if you are requesting a refund or abatement of an assessed penalty. You can find the Code section on the Notice of Assessment you received from the IRS.
Number 5a and 5b — Interest, penalties, and additions to tax
In 5a, mark the appropriate checkbox that indicates the reason for the request for refund or abatement. You may indicate that interest was assessed as a result of IRS errors or delays, a penalty or addition to tax was the result of erroneous written advice from the IRS, or a reasonable cause or other reason allowed under the law (other than erroneous written advice) can be shown for not assessing a penalty or addition to tax.
In 5b, provide the dates of payments.
Number 6 — Original return
If applicable, select the appropriate checkbox to show the type of fee or return to which your claim or request is relevant. The options are 706, 709, 940, 941, 943, 945, 990-PF, 1040, 1120, and 4720. Or you may just specify the fee or return in the provided space.
Number 7 — Explanation
Explain in detail your reasons for filing and show accurate computations that you made.
Sign the document and provide the date of signing. If applicable, provide your title. Claims by corporations must be signed by an officer.
If a joint return, your spouse should also provide his or her signature and the date of signing.
Frequently Asked Questions About Form 843
When do you file Form 843?
You file Form 843 claims to ask the Internal Revenue Service to make an adjustment or change in your tax liability. You commonly use Form 843 if you have filed your federal income tax return and later find out that you are entitled to a refund of some of the tax that was withheld from your wages.
In addition, the Internal Revenue Service does not recommend you to use Form 843 to file a claim for abatement of income, estate, or gift tax under the Internal Revenue Code Section 6404(b). However, if an assessment of employment tax is discovered to be excessive or improperly or erroneously determined, you may appeal the decision.
According to the Internal Revenue Service, you may request an abatement for the following:
- Abatement of interest relating to income, estate, gift, generation-skipping, and certain excise taxes whose accrual is attributable to any unreasonable error or delay in performing a ministerial or managerial act as stated in IRC Section 6404(e)
- Abatement of any penalty or addition to tax (but not the tax) attributable to erroneous written advice from the Service according to a specific written request and on which you reasonably relied upon as stated in IRC Section 6404(f)
- Abatement of penalty or interest for any taxpayer granted relief because of a Presidentially declared disaster or a terroristic or military action as stated in IRC Section 7508A(a)(2)
- Abatement of a "math error" assessment as stated in IRC Section 6213(b)(2)
- Application of net rate interest netting on overlapping tax underpayments and overpayments under Rev. Proc. 2000–26, 2000–1 C.B. 1257 as stated in IRC Section 6621(d)
- Removal of penalties under the Post-Assessment Penalty Appeal process
How long does the IRS take to process Form 843?
Processing times vary based upon the type of refund requested and whether you have filed other forms with your Form 843. In some cases, your abatement claims may be processed within three to four months from the day the Internal Revenue Service received your Form 843. However, the actual processing time may take up to one year. It may also take longer if there is a mathematical or clerical error or an incomplete return.
The processing times are based on an eight-hour workday and a 40-hour workweek. However, these numbers do not include any time that passes during weekends or holidays.
When will Form 843 be approved?
If your Form 843 meets all the requirements, it will be approved. If your Form 843 is approved, you will receive a notice of abatement from the Internal Revenue Service that states how much money has been refunded to you. The notice of abatement is usually sent out after the refund has been issued.
What happens if Form 843 is not approved?
If your Form 843 does not meet the requirements, the Internal Revenue Service will deny it and send you a notice of denial letter that contains an explanation of the reason for denial.
Alternatively, you may receive a notice of adjustment that states that abatement proceedings are being initiated to review the matter. The Internal Revenue Service will then send you another letter when your Form 843 has been adjusted or changed.
What should I do if Form 843 is not approved?
If your Form 843 was denied by the Internal Revenue Service (IRS), you still have options to appeal the decision by filing a petition in Tax Court. Otherwise, the IRS will automatically assess taxes and penalties that would have originally been removed if Form 843 was approved.
You have 30 days to respond if your Form 843 claim is denied. You can request a conference with a supervisor from the IRS before you file a timely petition.
The District Court or the Court of Federal Claims will review your appeal and decide whether to hear or deny your claim. They may ask for additional information if they cannot make a ruling based on what you submitted.
How to avoid delays in processing Form 843?
If you are required to file Form 843, it is important that you properly complete the form and provide all information. If needed, gather any additional documents or information to support your claims. Every Form 843 must contain your name, address, and Social Security Number or Employer Identification Number (EIN) in order for the IRS to process it.
Additionally, when claiming a net rate interest netting under Rev Proc. 2000-26 or IRC 6621(d), state the overpayments and underpayments in chronological order with their specific IRS processing code.
When does the IRS send the refund for claims?
If your Form 843 is approved, do not expect to receive the money within one day. The Internal Revenue Service refunds claims in two to three months after your claims have been approved.
What are the reasons the IRS would deny your Form 843?
The Internal Revenue Service may deny your Form 843 if:
- the filing deadline has passed;
- you did not file a tax return;
- Form 843 is filed more than three years from the date of overpayment;
- Form 843 is filed after the expiration of the applicable period of limitations;
- Form 843 includes refund claims for which you have already been paid;
- Form 843 does not include required supporting documentation;
- Form 838 claim amount exceeds $50,000;
- Form 843 is filed incorrectly; or
- Form 843 is filed by someone other than you or your authorized representative.
You will know your Form 843 is denied once the Internal Revenue Service mail you a notice of denial within four months from the time they received your Form 843.
What if the IRS did not respond to my Form 843 claim?
If the Internal Revenue Service did not respond to your Form 843 claim within 120 days, you may file an additional Form 843 within 90 days of the initial filing date.
The processing time for your additional Form 843 is three to four months after the processing time for your initial Form 843.
How long do I have to file Form 843?
You should file Form 843 within the time period for filing a refund claim. Otherwise, your claim may no longer be valid and will not be considered by the Internal Revenue Service.
Why is the approval of my Form 843 delayed?
Generally, Form 843 is processed in about three to four months. However, there may be additional delays if it is incomplete or has missing information.
There are many reasons why Form 843 may not be processed as quickly as you expect. One of the most common issues is that Form 843 cannot be filed electronically and must be submitted by mail. It means that your Form 843 can get lost or misplaced and delay further action on it.
Another reason for a delay in processing Form 843 is if any form with Form 843 is incomplete or has missing information. Other issues that can slow down processing time are errors on non-resident alien withholding, income tax adjustments, entitlement to credits or refund based on net operating losses due to disaster losses, and recapture of Federal Mortgage Subsidy.
An individual Form 843 is generally processed within four months, but official Form 843 for Corporation Trust Fund (CTF) can take longer to process. It will also take much longer if your Form 843 claim relates to a foreign address.
If my Form 843 is denied, when can I submit another Form 843?
If your Form 843 claim is denied, you can file a second Form 843 within 90 days of the date of filing the first Form 843.
You must include a cover letter that explains why your original Form 843 was incomplete or incorrect and describes any changes made to it since its original submission.
Where do I send Form 843?
The mailing address for Form 843 varies depending on the nature of your Form 843 claim.
Mail your Form 843 to the address shown in the notice if you are filing Form 843 in response to an Internal Revenue Service notice regarding a tax or fee related to certain taxes such as income, employment, gift, estate, or excise.
Mail your Form 843 to the following mailing address to request a claim for refund in an estate tax matter:
Internal Revenue Service
Attn: E&G Mail Stop 824G 7940
Kentucky Drive Florence, KY 41042-2915
Mail your Form 843 to the service center, where you will be required to file a current-year tax return for the tax to which your claim or request relates, if you file Form 843 for penalties or any other reason other than an Internal Revenue Service notice or estate tax claim or Letter 4658, Letter 5067C, Notice of Final Fee Calculation, a net interest rate of zero requests, or a nonresident alien’s claim for refund of social security or Medicare taxes withheld in error.
Mail your Form 843 to the following address if you file it in response to Letter 4658, Notice of Branded Prescription Drug Fee or Letter 5067C, Annual Fee on Health Insurance Providers Final Fee:
Internal Revenue Service
Mail Stop 4921 BPDF
1973 N. Rulon White Blvd.
Ogden, UT 84201
Mail your Form 843 to the service center where you filed your most recent return to request a net interest rate of zero.
Mail your Form 843 to the address in Pub. 519 if you are a nonresident alien requesting a refund of social security or Medicare taxes withheld in error from pay that is not subject to such taxes.
Does the IRS ever waive penalties and interests?
In some cases, penalties and interests on income tax returns may be waived.
The Internal Revenue Service (IRS) may waive a penalty on any portion of an unpaid balance if you are assessed a penalty for filing late, failing to file a return, or paying taxes late. Waiver of penalty satisfies all other penalties on that same liability for that particular period or year.
If you have filed all required returns but failed to pay some tax, the IRS may waive a penalty and interest on any portion of an unpaid balance if it is satisfied that the failure to file or pay was due to a reasonable cause.
What is an abatement?
An abatement is a process by which you ask for a penalty or interest on a previously assessed balance to be waived by the Internal Revenue Service (IRS).
To qualify for an abatement, you must file your request within the time period given in the notice that states when penalties and interest begin to accrue. You can request an abatement of either penalty or interest separately.
The IRS may abate all or part of the penalty if it is satisfied that the failure to file or pay was due to a reasonable cause but will not consider any reason for abatement unless it arose after the first notice of delinquency was mailed.
You may have to submit evidence that establishes a reasonable cause. If you are requesting an abatement of interest, be sure to include a computation similar to the one included in IRS Pub. 519. It will help prove your reason for filing after the due date.
What is a reasonable cause for penalty abatement?
A reasonable cause is an act or occurrence beyond your control that kept you from filing your tax return or paying the taxes on time, although it does not require you to be physically unable to file or pay.
Whether you were unable to file or pay income taxes by the due date may depend on whether any of the following apply:
- You reasonably and in good faith believed, based on the facts and circumstances known to you at the time, that your tax would be fully or partially paid by another person or refundable.
- You were outside the United States, and your tax payments fulfilled your reasonable expectations about the length of your stay abroad.
- A natural disaster, such as a hurricane, tornado, fire, earthquake, volcanic eruption, typhoon, or tsunami, prevented you from filing on time. The disaster need not have taken place in the United States or your particular locality.
- You reasonably relied on incorrect information provided to you by the IRS and filed or paid within a reasonable time after you had reason to know of the inaccurate advice. For example, a letter issued by an officer or employee of the IRS giving incorrect advice about the filing of your tax return or paying of taxes.
- You do not reasonably expect to be able to pay your total tax liability by the original due date and requests an abatement only as it relates to penalty and interest.
Is there one-time tax forgiveness?
Yes. The Internal Revenue Service (IRS) offers one-time tax forgiveness under the One Time Forgiveness program.
Under the One Time Forgiveness program, taxpayers can request to have forgiven all or part of certain taxes. To qualify for this program, you must:
- be unable to pay your tax liability by the original due date;
- make an application for abatement within eight years from the original due date of your return; or
- apply for penalty abatement under reasonable cause or request abatement of interest due to serving in a combat zone.
The IRS may also abate penalties and interest on any portion of an unpaid tax if it is satisfied that:
- all requirements for filing a claim for refund have been met;
- you filed your return within three years from the time the return was due or two years from the time you paid the tax, whichever is later; and
- the refund is not barred by a law or rule that prohibits refunds.
Does the IRS abate interests?
Generally, interests cannot be abated. However, interests may be abated if you file your return within eight years of the original due date, excluding extensions, and the Internal Revenue Service (IRS) waives all penalties for filing late. If eight years have passed since your original due date without an extension, you will not be allowed to claim a refund of any penalty paid.
In general, interest will stop accruing from the date you request a refund up to 30 days after the IRS receives your request for abatement if no notice of deficiency has been issued.
Is an abatement a refund?
Abatement is not a payment or refund. If you owe money, Form 843 does not pay your debt. It only reduces the amount you owe.
If you receive a notice of approval, it means that you are no longer responsible for paying interests or penalties on the amount being removed by Form 843.
If you do not receive a notice of approval, interests and penalties will continue to accrue on Form 843 claims.
Can Form 843 be filed electronically?
No, the Internal Revenue Service has no instructions regarding filing Form 843 electronically. You may mail your Form 843 to the Internal Revenue Service Processing Center, where you filed the return you want to claim a refund or ask for an abatement.
Does the IRS forgive tax debt after ten years?
No, the IRS does not forgive tax debt after ten years.
The federal government has a longstanding policy of collecting taxes owed under all circumstances, regardless of their due date. It means that when you owe past-due taxes to the Internal Revenue Service (IRS), there is no statute of limitations on how long they can seek your payment.
So to ask if the IRS forgives tax debt after ten years is not accurate, as you will always owe past-due taxes to the federal government until they are paid in full. The only way to stop owing taxes and end your debt is by filing an offer in compromise. It is the only type of payment plan available with the IRS, which you can use to settle your tax burden for less than what you owe.