Want a Refund of IRS Penalties? Then, File Form 843
The IRS will often remove penalties for paying or filing late, but to get relief, you must ask for it. Typically, that involves filing Form 843 or calling the IRS. You can also use this form to request a refund of certain taxes. This guide covers the basics.
Key takeaways
- To get the IRS to remove penalties, file Form 843 or call the IRS.
- Also, use Form 843 if your employer withheld excessive Social Security or Medicare tax and refuses to refund it.
- Don’t use this form to request income tax refunds.
How to Request Penalty Abatement From the IRS
If you have incurred failure to file or failure to pay penalties from the IRS, you can call the agency to request penalty abatement. Generally, if you have not incurred the same type of penalty in the last few years, the IRS will remove the penalties from your account.
However, if the agency refuses to remove the penalties, you may want to request relief with Form 843. You can also use this form if you prefer to handle matters through the mail rather than sitting on hold to reach the IRS.
Who Should File Form 843?
The most common reason people file this form is to request abatement of IRS penalties. However, you can also file this form if any of the following apply:
- You want a refund of any tax other than income, estate, or gift tax that doesn’t come with its own tax refund form.
- You want a refund of excess Social Security, Medicare, or RRTA tax your employer withheld from your pay, and your employer refuses to issue you the refund.
- You want a refund of interest, penalties, or tax caused by IRS delays or incorrect written advice by the IRS.
- You want a refund of a penalty for misuse of dyed fuel under section 6715.
- You want a refund of a branded prescription drug fee.
- You believe the IRS has incorrectly charged you interest and penalties.
If you’re unsure whether this is the proper relief form to use, contact a tax attorney or the IRS for guidance.
Is Form 843 Required for Penalty Abatement?
If you’re applying for penalty abatement, you don’t necessarily need to file this form. Alternatively, you can just call the IRS or write a letter and ask for penalty abatement. However, when you request abatement over the phone or through the mail, you need the same details as you include on this form. By extension, it’s often easier to just fill out the form to ensure you don’t overlook anything.
Other Forms to Request Tax Refunds
The IRS has several different forms that allow you to request penalty abatement. They include the following:
- Form 1040-X – to amend your personal income tax return and request a refund.
- Form 8379 – to request to keep your portion of a tax refund on a jointly filed tax return when your spouse’s refund is being seized for unpaid bills.
- Amended Form 1041 – to amend your estate or trust return for a refund.
- Form 1045 (Application for Tentative Refund) – to apply for a refund related to a net operating loss, a general business credit, a 1256 contracts loss, or an adjustment under Section 1341(b)(1).
- Form 941-X or 940-X – to claim a refund of FICA tax, RRTA tax, or income tax withholding.
This is not an exhaustive list. Keep in mind that for most tax refunds, you must request the refund within three years of the return’s due date or filing date or within two years of the date the tax was paid. The IRS will not issue a tax refund if you miss these deadlines.
If you’re requesting a refund very close to the deadline, keep proof of the date you mailed the return. Generally, the IRS will accept a postmark as on-time even if it receives the request after the actual deadline.
Instructions for Form 843 Request for Refund
This form is only two pages long, and once you’re sure that you’re filing the right form, most of it is very straightforward. To complete it, you need your name, Social Security number, address, contact details, and details about your spouse, if relevant. You also need the tax period, the amount you want abated or refunded, and the reason for your request.
This form was updated in December 2024, and the newest version starts with a long list of the reasons you may be filing this form. To get started, decide if you’re requesting penalty relief, tax refund, interest abatement, or filing for another reason. The form lists options under each category, and you should tick the box that best applies to your situation.
For example, if you’re requesting penalty abatement, the options are as follows:
- Abatement or refund of a penalty due to reasonable cause or other reason allowed under the law.
- Abatement or refund of penalty imposed under section 6672 for failure to collect and pay over tax or attempt to evade or defeat tax (Trust Fund Recovery Penalty).
- Refund of penalty imposed under section 6695A for misstatements due to incorrect appraisals. For example, you may select this option if you incurred an accuracy-related penalty due to failing an audit for the incorrect valuation of an asset.
- Refund of penalty imposed under section 6715 for misuse of dyed fuel.
- Abatement or refund under section 6404(f) of a penalty or addition to tax attributable to erroneous written advice by the IRS.
If none of the boxes from the list at the top of the form describe your situation, you should contact the IRS or talk with a tax professional about which forms to file in your situation or review the list above for ideas.
After noting why you’re filing the form, fill out your basic details and contact information. Then, continue to complete the form as follows:
- Line 1: Note the tax period. Fill out a different 843 form for each tax period.
- Line 2: Amount to be refunded.
- Line 3: Date of payments for which you’re requesting a refund.
- Line 4: Type of tax, for example, employment, estate, gift, excise, income, fee, civil penalty, etc.
- Line 5: Type of return, for example, 1040 individual income tax return, 941 employer quarterly report, etc.
- Line 6: Internal Revenue Code that applies to the penalty, if applicable.
- Line 7: Reason for request, for example, IRS errors, reasonable cause, etc.
- Line 8: Written explanation
Don’t forget to sign the form. If you’re requesting abatement related to a jointly filed tax return, both you and your spouse will need to file it. You need to file a Form 843 for every period you want a refund. For example, if you incurred fees for filing tax returns late in 2021 and 2022, you need to file two 843 forms.
Supporting Documents
In Section 8, you can write out an explanation of why you deserve penalty abatement or a refund. You can also attach additional sheets if you need more room. You may also want to support documents that prove your reasons for requesting penalty relief or refunds.
For example, if you are asking for penalty relief due to reasonable cause related to medical issues or a death, you may want to attach a doctor’s note or a death certificate. If you’re requesting a refund of taxes withheld by your employer, you may want to attach a W2 showing the incorrect amount of Social Security or Medicare tax withheld. If you’re requesting penalty abatement due to erroneous advice from the IRS, you should attach a copy of the written advice you received.
Tips for Filing Form 843
To improve your chances of being successful with this form, consider the following tips:
- Make sure you’re filing the right form. If in doubt, contact the IRS or reach out to a tax attorney.
- Be factual, not emotional. Although paying unnecessary taxes or incurring significant penalties can be stressful, try to stick to the facts in your explanations.
- Understand the law. You must cite the part of the legal code that allows the IRS to assess the penalty you received. You can search online using the penalty name and “IRM code” or consult a tax attorney for guidance.
- File within three years of filing the return or two years of paying the tax. The IRS cannot give out refunds after this time frame.
- Provide clear calculations and explanations on the form.
- Attach supporting documents as needed, but keep copies of everything to be on the safe side.
Where to Send Form 843
If you’re filing Form 843 in response to an IRS notice, mail the form to the address on the notice. Otherwise, use the following addresses.
To request a refund for estate tax matters:
IRS
Attn: E&G
Mail Stop 824G
7940 Kentucky Drive
Florence, KY 41042-2915
In response to Letter 4658 about a prescription drug fee:
IRS
Mail Stop 4921 BPDF
1973 Rulon White Blvd.
Ogden, UT 84201
In response to Letter 5067 C related to Health Insurance Providers Final Fee:
IRS
Mail Top 4921 IPF
1973 N. Rulong White Blvd
Ogden, UT 84201
If you’re requesting relief from penalties or filing the form for any other reason not listed above, you should mail the form to the service center where you would normally mail your tax return for filing. The mailing address varies based on your location.
How to Appeal If the IRS Rejects Your Request
If the IRS rejects your request for penalty relief, they will typically send you a letter. The letter will note that you were denied and outline your appeal rights. Generally, you only have 30 days to appeal. The penalty appeals “hearing” will typically take place over the phone, and you will have time to explain why you should receive penalty relief.
For example, if the IRS assessed a penalty for filing late but you mailed your return on time, you may want to show the IRS the postmark from the return that you filed.
You can also appeal if the IRS rejects your claim for a refund. Note, however, that you have a limited amount of time to request a refund of taxes paid, and you may need to sign a form extending the statute of limitations so that you can preserve your right to request a refund. A tax attorney can be critical in this situation.
Get Help With Form 843 Today
Wondering if Form 843 is the right form for your situation? Curious if you’re likely to get penalty relief or a tax refund? Want help filing the form? Although most of it is straightforward, the part where you need to explain the refund and its calculation can be challenging.
Want to ensure you’re taking the best path to resolve your tax debts? Then, you should contact the experienced tax attorneys at Wiggam Law today. We will talk with you about your tax debt and, if relevant, help you apply for penalty relief or refunds. Then, we’ll help you get back into good standing with the IRS. Don’t delay – reach out for help today. Schedule a consultation with our team or call us at (404) 233-9800.