IRS Form 843, or the “Claim for Refund and Request for Abatement,” is a form taxpayers use to request a refund of taxes paid or a reduction in tax liability. The form is also used to request abatement of penalties and interest that may have been assessed on a tax liability.

Reasons For Filing

There are several reasons why a taxpayer may need to file Form 843, including:

Overpayment of taxes: If taxpayers have paid more than they owe, they can use Form 843 to request a refund of the overpaid amount.

Claim for credit or refund of an overpayment of estimated tax: Taxpayers who have overpaid their estimated taxes can use Form 843 to request a refund or credit of the overpaid amount.

Abatement of penalties: Taxpayers who believe a penalty has been assessed in error can use Form 843 to request that the penalty be abated (removed).

Abatement of interest: Taxpayers who believe that interest has been assessed in error can use Form 843 to request that the interest be abated.

How to Complete Form

When filing Form 843, taxpayers must provide detailed information about the reason for their claim, including the tax period in question, the specific tax liability or penalty being disputed, and any supporting documentation. Taxpayers must also provide their personal information and signatures on the form.

What Happens Next

Once Form 843 is submitted, the IRS will review the information provided and determine the claim. If the claim is approved, the IRS will issue a refund or credit to the taxpayer or abate the assessed penalty or interest. If the claim is denied, the taxpayer will be notified of the decision and provided information on their appeals rights.

Under the Internal Revenue Code section 6404(e), The IRS is authorized to abate any penalty imposed under this title concerning a taxpayer for any period if it is shown that such penalty is excessive in relation to the deficiency (or portion thereof) which it is assessed. This means that taxpayers can request for the penalty imposed on them to be abated if they think it is excessive.

Additionally, under the Internal Revenue Code section 6402(a), the IRS can credit or refund any overpayment. This means taxpayers can request a refund of any overpayment of taxes or credit to the taxpayer’s account.

Furthermore, under the Internal Revenue Code section 6404(h), the IRS is authorized to abate interest imposed under this title for a taxpayer for any period if it is shown that such interest is excessive concerning the deficiency (or portion thereof) which it is assessed. This means that taxpayers can request for the interest imposed on them to be abated if they think it is excessive.

It is important to note that Form 843 must be filed within three years from the original return’s filing or within two years from the date the tax was paid, whichever is later. If a claim is filed after these deadlines, the IRS may not process the claim and the taxpayer may not be entitled to a refund or credit.

Summary

IRS Form 843, also known as the “Claim for Refund and Request for Abatement,” is a form used by taxpayers to request a refund of taxes paid or to request a reduction in tax liability. The form is also used to request abatement of penalties and interest that may have been assessed on a tax liability. Taxpayers must provide detailed information about the reason for their claim, including the tax period in question, the specific tax liability or penalty being disputed, and any supporting documentation. Taxpayers must also provide their personal information and signature on the form.

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