The IRS Form 843 is a written request asking the government to waive certain penalties imposed on taxpayers. These penalties include failure-to-pay penalties, failure-to-file penalties, and failure of employers to deposit taxes as required by law. This waiver has been in place since 2001. You can also use Form 843 to request a refund of certain assessed taxes.
Definition of Form 843
Form 843 is a “Claim for Refund and Request for Waiver.” It requests the Internal Revenue Service (IRS) to abate tax penalties imposed on taxpayers under the first-time penalty abatement policy. “Administrative” means that this tax relief is not provided by statute or regulations. It leaves the matter to the discretion of the Internal Revenue Service.
Who uses Form 843?
Form 843 can be used by taxpayers who are requesting one of the following: a refund of certain assessed taxes, abatement of FICA taxes or sales taxes, a refund of prescription drug costs, abatement of failure-to-file penalties, failure to pay taxes, or failure to deposit taxes.
Where can I obtain Form 843?
The Internal Revenue Service provides an interactive Form 843 on its website. You can fill out the form online and print it, or you can print it and fill it out manually.
How to fill out Form 843?
The IRS Form 843 starts with a section for your identifying information: names, addresses, and Social Security numbers for you and your spouse, as well as the employer identification number if you are filing on behalf of a business. Each line on the form is clearly labeled.
Line 1: Specify the tax year for which you are requesting the IRS to review.
Line 2: Enter the amount you wish to refund or reduce.
Line 3: Specify the type of tax.
Line 4: Cite the type of penalty you are addressing if you are filing the form for that reason. You will need to include the appropriate section of the Internal Revenue Code. This information is provided in the instructions.
Line 5a: Specify the reason for which you are requesting relief. You can simply check the appropriate box, or you can skip this section if none of the provided answers sufficiently explain your situation.
Line 5b: Enter the dates of any tax payments you made for which you wish to get a refund if that is the reason for your claim.
Line 6: Specify the type of tax return you filed.
Line 7: Explain why you are submitting the form and why you are requesting relief. You may attach additional pages if there is not enough space here.
You must (and your spouse if you are married and filing jointly) sign the form under penalty of perjury. The bottom part of the form is reserved for your tax professional’s signature and information if you decide to hire someone to assist you with your case.
Can Form 843 be submitted online?
The IRS does not provide any instructions for submitting Form 843 online.
Where can I send Form 843?
Send Form 843 to the address listed in any notice you received imposing penalty fees. Send it to the IRS service center where you typically send your tax return if no notice has been provided or if you are filing for a reason other than penalty abatement.
Requirements for submitting Form 843
Submitting Form 843 is relatively straightforward by sending the completed form by mail unless you are dealing with a sales tax issue. You will also need to submit Form 4720 in this case. The IRS provides detailed instructions for this form on its website as well.
Frequently Asked Questions (FAQs)
What are the most common penalties imposed by the IRS?
Failure to file and failure to pay any taxes due are among the common penalties imposed by the IRS. The failure-to-file penalty is 5% of the tax due on the missed return, up to a maximum of 25%, but this only applies for the first 60 days after the due date of the return. The penalty increases to $435 or 100% of the tax due, whichever is less, after that deadline.
The penalty
Failure to pay is 0.5% of the taxes owed up to 25% of the unpaid taxes, but this is only for the first 10 days of delay. The penalty increases to 1% per month or part of a month thereafter.
How do I know if I owe a penalty?
The Internal Revenue Service will send you a notice or letter by mail. The agency will not send you an email regarding this matter. The notice or letter will tell you what the IRS believes you did wrong and what you need to do next. Pay attention to any instructions or deadlines stated in the notice or letter. You can contact the IRS for more information if you are confused.
Source: https://www.thebalancemoney.com/what-is-irs-form-843-5205684
Leave a Reply