Form 843 Instructions: How to File a Claim
Navigate the process for claiming refunds on certain payroll taxes or requesting penalty relief with a properly prepared Form 843 submission to the IRS.
Form 843, Claim for Refund and Request for Abatement, is a tool for taxpayers to correct certain financial discrepancies with the Internal Revenue Service. It is used to request a refund of particular taxes and fees or an abatement, which is a reduction, of penalties and interest that have been assessed. This form is not a substitute for an amended income tax return, such as Form 1040-X. Its purpose is confined to situations that fall outside the scope of standard return amendments and cannot be resolved through other dedicated forms.
When to Use Form 843
Deciding to file Form 843 depends entirely on your specific circumstances, as it applies to a narrow set of tax issues. A primary use is to request a refund of Social Security and Medicare (FICA) taxes that were withheld from your pay in error. This situation often applies to certain non-resident aliens, such as foreign students on F-1 or J-1 visas, who are exempt from these taxes but whose employers withheld them anyway.
The form is also the correct vehicle for claiming a refund of Railroad Retirement (RRTA) taxes that were overpaid. Another function of Form 843 is to request an abatement, which is a reduction or complete removal of penalties. This is often pursued when a taxpayer can demonstrate “reasonable cause” for failing to file or pay on time, which can include events like a natural disaster, a serious illness, or an inability to obtain records. You can also request an abatement of interest if it accrued because of an IRS error or delay.
The form covers certain excise taxes as well. A claim must be filed within three years from the date you filed the original return or within two years from the date you paid the tax, whichever is later. Failing to meet this deadline, known as the statute of limitations, will likely result in the denial of your claim.
Information and Documentation for Your Claim
The form itself requires basic identifying details, including your name, address, and Taxpayer Identification Number (TIN), such as a Social Security number. If the claim relates to a joint return, both spouses’ information and signatures are required. You must file a separate Form 843 for each tax period.
On lines 1 and 2, you must state the tax period for which you are filing and the exact dollar amount you wish to have refunded or abated. The form then asks you to check boxes to specify the type of tax or fee and the type of return you filed. If your request relates to a penalty, you will enter the relevant Internal Revenue Code section on Line 6, which can usually be found on the IRS notice you received.
On Line 7, you check a box to indicate the primary reason for your request, such as an IRS error or reasonable cause. The detailed explanation for your claim is then provided on Line 8. Here, you must provide a clear, factual, and detailed narrative explaining why you believe you are entitled to a refund or abatement. You should state the specific facts, dates, and figures that support your position.
Attaching the correct supporting documents is a requirement for a successful claim. For a FICA tax refund, you must include a copy of your Form W-2 to show the taxes withheld. It is also necessary to provide a statement from your employer confirming they will not issue a refund, or your own statement detailing your unsuccessful attempt to get one from them. If your claim is based on reasonable cause, you must provide evidence, such as hospital records for a medical issue or insurance claims for a natural disaster.
How to File Your Completed Form 843
This form must be filed by mail, as there is currently no option for electronic submission. It is important to keep a complete copy of the signed form and all attached documents for your personal records before mailing.
The correct mailing address for Form 843 depends on the reason for your claim. If you are filing in response to a specific IRS notice, you should send the form to the address listed on that notice. For other claims, the mailing address varies based on the type of tax or fee involved. The official instructions for Form 843, available on the IRS website, contain a detailed chart listing the correct service center addresses.
After mailing your claim, the IRS will begin its review process, which can take several weeks or even months. The agency may contact you if it requires additional information regarding your request. Once a decision is made, you will receive a formal notice of determination in the mail, which will state whether your claim has been approved or denied and explain your appeal rights.