Form 843

Form 843 allows taxpayers to claim a refund. This form can be used to apply for abatement of taxes, tax refund of erroneously withheld RRTA tax excess, Medicare taxes, and refund of RRTA tax due to employer’s error. It can also be sued to refund or abate erroneously withheld tax additions, penalties and interest due to the fault of IRS.

In addition, Form 843 can be used to apply for a tax refund or penalty abatement owing to reasonable cause allowed by law, dyed fuel misuse, employee representative (RRTA tax) and prescription drug fees’ refund.

The use of Form 843 is not a mandatory requirement of IRS in order to request abatement. Taxpayers may do this by simply sending a letter of request to the IRS stating the application for abatement. The request must contain information that identifies the amount of abatement applied for and the reasonable cause that gave rise to the penalty.

It is important to note that Form 843 cannot be used to request a refund of the Medicare or Social Security taxes that IRS withheld in error or in excess. Furthermore, taxpayers are not allowed to use this form in order to claim or request for a refund or reduction of estate, gift or income tax.

Category: Tax refund, Penalty abatement. This form is filed by the taxpayer every time a refund or abatement is requested. Individuals should not make any excessive claims; otherwise, a fine of 20% on the amount in excess of the payable refund.

Link to IRS website: http://www.irs.gov/instructions/i843/index.html

 

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