due_logo
Search
Close this search box.

Table of Contents

Form 843

Definition

Form 843 is a document used by the U.S Internal Revenue Service (IRS) for taxpayers to make a formal request for the refund of penalties, interest, or certain taxes. It is also used to request an abatement of unjust tax assessments or charges. Essentially, this form allows taxpayers to claim unfair or incorrect tax charges.

Phonetic

The phonetics of the keyword ‘Form 843’ is: /fɔːrm ˈeɪt fɔːr θriː/

Key Takeaways

Here are the three main takeaways about Form 843:

  1. Claim for Refund and Request for Abatement: IRS Form 843 is used by taxpayers to claim a refund or request for an abatement of certain taxes, penalties, interest, and additions to tax.
  2. Specific Charges Only: It’s mainly used for specific charges like penalties for failure to file on time or to petition against penalties incurred for tax compliance issues; it’s not meant for general income tax return queries.
  3. Provide Detailed Information: While filling out Form 843, taxpayers must provide detailed information about why they believe they’re entitled to a refund or abatement. This includes circumstances details, law provisions, and necessary supporting documentation as proof for their claim.

Importance

Form 843 is crucial in the business/finance domain because it allows taxpayers to request the Internal Revenue Service (IRS) for refund or abatement of certain types of taxes, penalties, interest, or other amounts. This can include fees for filing a tax return late or incorrect assessment of income tax due. Essentially, Form 843 serves as a formal way for taxpayers to dispute charges or fees that they believe have been erroneously assessed by the IRS. The ability to request these adjustments can potentially save businesses and individuals significant amounts of money, making the understanding and correct use of Form 843 vitally important when dealing with tax-related issues.

Explanation

Form 843, issued by the Internal Revenue Service (IRS), is used mainly for the purpose of addressing and resolving specific tax-related issues such as refunding a penalty or fee paid by the tax payer, or a request for abatement of certain taxes. This form is employed when a taxpayer believes they have been incorrectly assessed a fine, penalty, or interest on their taxes. By filling out and submitting Form 843, taxpayers can state their case to the IRS and possibly have these excess charges refunded or eliminated.Moreover, Form 843 can also be used to request refunds on certain types of taxes like the Federal Insurance Contributions Act (FICA) and Railroad Retirement Act (RRTA) taxes and income taxes withheld in error. This gives taxpayers an avenue to claim back excess taxes that have been mistakenly withheld from their income. Clarifying the circumstances through this form can provide a clear communication channel with IRS and enhance the efficiency of solving the tax-related disputes.

Examples

Example 1: Personal ScenarioJohn, an individual taxpayer, had paid excess of $500 in income tax due to a computational error in his Form 1040 for the fiscal year 2017. He realized this mistake in 2018 and decided to claim a refund. To do so, he utilized Form 843, “Claim for Refund and Request for Abatement” , to request an abatement of the erroneously paid amount.Example 2: Business Tax ScenarioXYZ Corporation, in its fiscal year 2016, had overpaid their employment tax due to a double payment error made by their accounting department. When they identified their mistake in fiscal year 2017, the corporation resorted to use Form 843 to file a claim for the refund of the overpaid employment tax amount.Example 3: Penalty Abatement ScenarioSarah, a freelance designer, had been penalized by the IRS for not filing her income tax return on time for the year 2018. However, she had a reasonable cause for this delay because she was on medical treatment due to a major accident during that period. To abate, or to decrease, her penalization because of this reasonable cause, she decided to use Form 843 for a request for abatement.

Frequently Asked Questions(FAQ)

What is Form 843?

Form 843 is a document issued by the Internal Revenue Service (IRS) used by taxpayers to request a tax refund or ask for the removal of tax penalties, interest, or additional amounts owed.

Who should file Form 843?

Anyone who believes that they have been unjustly charged with penalties, excess interest, or additional amounts by the IRS and wish to make a claim for refund or request for abatement.

Where can I find Form 843?

Form 843 can be downloaded from the official IRS website, www.irs.gov. You can also obtain the form from professional tax preparers or public tax libraries.

How do I fill out Form 843?

Complete all necessary sections in the form, including your personal information, specifics about the tax or fee you’re disputing, and a detailed explanation of your reasons for filing the form.

What documents do I need to include with Form 843?

The necessary documents depend on what you’re disputing. If contesting a penalty, for instance, you need to provide documents that prove you met your tax obligation.

When should I file Form 843?

It should be filed as soon as you realize an error has been made, either on your part or by the IRS. However, there are time limits depending on the type of tax or fee being disputed.

How much does filing Form 843 cost?

There is no fee to file Form 843.

After submitting Form 843, what happens next?

After the form is submitted, the IRS will review your application. The length of this process depends on the complexity of the issue. The IRS will then notify you of their decision.

What if the IRS denies my Form 843 claim?

If the IRS denies your claim, you have the right to appeal the decision.

Related Finance Terms

  • IRS (Internal Revenue Service)
  • Tax Penalty Abatement
  • Tax Refunds
  • Overpayment of Tax
  • Tax Claims

Sources for More Information

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More