Form 843, IRS Claim for Refund and Request for Abatement

Form 843 should not be used by individuals to claim an income tax refund, or to request a reduction of income, estate or gift tax. Businesses should not use the form to request an abatement of employment taxes, such as FICA. If you are claiming a refund, Form 843 must be submitted no later than three years after the return was filed or two years after the taxes were paid, whichever is later. The IRS will only abate interest on a tax in certain limited circumstances that involve IRS delays or errors. If you are requesting an abatement of interest for this reason, you must write “Request for Abatement of Interest Under Section 6404(e)” at the top of Form 843.

 

What is IRS Form 843?

Individual taxpayers can use Form 843 to request, for example, a refund of Social Security or Medicare taxes withheld in excess or in error, or for penalties levied by the IRS in error. Taxpayers will continue to use Form 843 when requesting abatement of assessed penalties and interest. In addition, there is no “X” form for the Form 940, and taxpayer will continue to use a Form 940 for amended returns.

Who should not use IRS Form 843?

Do not use Form 843 to request a refund of income tax or Additional Medicare Tax. Employers cannot use Form 843 to request a refund of Federal Insurance Contributions Act (FICA) tax, Railroad Retirement Tax Act (RRTA) tax, or income tax withholding. Also do not use Form 843 to amend a previously filed income or employment tax return. Do not use Form 843 to claim a refund of agreement fees, offer-in-compromise fees, or lien fees. In certain circumstances, you can have longer to pay or your agreement can be approved for an amount that is less than the amount of tax you owe.

 

When should you file Form 843?

If you are unable to receive a refund of these taxes from your employer, you may then file Form 843 and Form 8316 to request a refund from IRS. Include the following:

  • a completed Form 843
  • a completed Form 8316
  • a copy of your W-2
  • a copy of the visa page of your passport
  • a copy of Form I-94
  • a copy of your work authorization (A copy of your EAD authorizing OPT or Economic Hardship)
  • a copy of front and back of your Form I-20 or DS-2019 authorizing CPT
  • a written statement that you unsuccessfully requested a refund of these taxes from your employer. (This can be the statement you obtained from your employer, or your own statement that you were denied refund of these taxes by your employer and were unable to obtain a statement from them.)

 

IRS Interest on Taxes Owed

The IRS will only abate interest on a tax in certain limited circumstances that involve IRS delays or errors. If you are requesting an abatement of interest for this reason, you must write “Request for Abatement of Interest Under Section 6404(e)” at the top of Form 843. Complete all lines on the form, on which you will have to give the following information:

Generally, you must file a separate Form 843 for each tax period or fee year or type of tax or fee. There are exceptions for certain claims.

Who Files Form 843?

You can file Form 843 or your authorized representative can file it for you. If your authorized representative files Form 843, the original or copy of Form 2848, Power of Attorney and Declaration of Representative, must be attached. You must sign Form 2848 and authorize the representative to act on your behalf for the purposes of the request.

You can request a net interest rate of zero by writing on top of Form 843 “Request for Net Interest Rate of Zero under Rev. Proc. 2000-26.” You must provide documentation to substantiate that you are the taxpayer entitled to receive the interest due on the overpayment.

 

When not to File Form 843?

Form 843 is limited in the types of tax, interest, penalties, and fees that you can request to be abated. You also cannot use Form 843 for the following reasons:

  • For an employer to request a refund or abatement of FICA tax, Railroad Retirement Tax, or income tax withholding
  • To amend a previously filed income or employment tax return
  • To claim a refund of agreement fees, offer-in-compromise fees, or lien fees
  • To request an abatement of gift or estate taxes

There are also circumstances where you may not have to file Form 843, or where you may have to file a different form. If you receive a notice from the IRS, you should follow the instructions on the notice. You may not be required to file Form 843 in all circumstances.

 

Filing 1040X to Receive Tax Refund Instead of Form 843

Use Form 1040X, Amended U.S. Individual Income Tax Return, to change any amounts reported on Form 1040, 1040A, 1040EZ, 1040NR, or 1040NR-EZ, to change amounts previously adjusted by the IRS, or to make certain elections after the prescribed deadline (see Regulations sections 301.9100-1 through -3).

File only one Form 843 if the interest assessment resulted from the IRS’s error or delay in performing a single managerial or ministerial act affecting a tax assessment for multiple tax years or types of tax (for example, where 2 or more tax years were under examination). Check the applicable box(es) on line 3 and provide a detailed explanation on line 7.