How to File IRS Form 843 for a Refund or Abatement

IRS Form 843, Claim for Refund and Request for Abatement, is used to address issues with certain non-income taxes, penalties, and interest charges. It is a formal request to the Internal Revenue Service to either return money that has already been paid (a refund) or to cancel a liability that has been assessed but not yet paid (an abatement). This form is not for amending an income tax return; that action requires filing Form 1040-X, Amended U.S. Individual Income Tax Return. The form requires a detailed explanation and supporting evidence to justify the claim, making it a formal petition rather than a simple correction.

Determining Eligibility to File Form 843

Eligibility to use Form 843 is restricted to particular situations and types of taxes. Taxpayers can file this form to request a refund or abatement for certain taxes, such as specific employment taxes and excise taxes. It is used when no other specific form applies to the refund request. It is also the designated form for requesting the removal of penalties for failure to file, failure to pay, or failure to deposit, provided there is a valid reason. The form can be used to reclaim overpaid interest or to request that assessed interest be canceled, especially in cases involving IRS errors or delays.

There are clear instances where Form 843 is not the appropriate vehicle. It cannot be used to dispute the actual amount of income, estate, or gift tax you owe; those disputes require other specific forms and procedures. A claim must be filed within three years from the date the original return was filed or within two years from the date the tax was paid, whichever is later. Claims filed outside this window are likely to be denied.

One common basis for a penalty abatement request is the “First-Time Abate” policy. Under this administrative waiver, the IRS may grant relief from failure-to-file, failure-to-pay, or failure-to-deposit penalties if the taxpayer has a clean compliance history for the preceding three years, has filed all required returns, and has paid or arranged to pay any tax due. Another reason is “reasonable cause,” where circumstances beyond the taxpayer’s control prevented them from meeting their tax obligations.

Information and Documentation Required

Before completing Form 843, you must gather specific information and supporting documents. The form requires your identifying information, such as your name and Social Security Number or Employer Identification Number. You must clearly state the tax period in question, the amount you are requesting to be refunded or abated, and the type of tax or penalty involved. For penalties, you will need to enter the specific Internal Revenue Code (IRC) section, which is typically found on the IRS notice you received.

On Line 7, the “Explanation of circumstances,” you must make a clear and persuasive case. Your explanation should be factual, chronological, and specific. If you are claiming reasonable cause for a penalty, you must explain how events you could not control, such as a natural disaster, a serious illness, or the death of a family member, directly led to the compliance failure. A strong explanation provides a timeline of events and connects them directly to the tax issue.

If your claim is based on receiving erroneous advice from the IRS, you must provide a copy of your written request for advice and the incorrect written response from the IRS. For other claims, supporting documentation is required. This can include copies of canceled checks to prove payment dates, medical records to substantiate an illness, insurance claims to document a casualty loss, or affidavits from third parties who have knowledge of the facts.

If a penalty was assessed because your tax preparer made an error, you might include a letter from the preparer admitting the mistake. If you are claiming a refund for excess Social Security or Railroad Retirement Tax Act (RRTA) taxes withheld because you worked for multiple employers, you must attach copies of your Form W-2 from each employer to prove the over-withholding. A separate Form 843 must be filed for each tax period and each type of tax or fee.

The Filing Process and Next Steps

Once you have completed Form 843 and compiled all necessary attachments, mail the package to the correct IRS service center. The specific mailing address 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 Form 843 instructions provide a chart of addresses based on the type of tax and where you would file a current return for that tax.

After mailing the form, processing times can vary significantly, from a few weeks to several months, depending on the complexity of your case and the IRS’s current workload. The agency will communicate its decision in writing. You will receive a letter that either accepts your claim, denies it, or requests additional information. If your claim is accepted, you will receive the requested refund, often with interest, or a notice confirming the abatement. If the claim is denied, the letter will explain the reasons for the denial and outline your appeal rights.