Form 843: What It Is and When Should You Use It?

Form 843: Key Takeaways

• Purpose – Use Form 843 to request a refund or abatement of certain IRS-assessed penalties, interest, fees, or specific non-income taxes.
• Eligibility Matters – It’s only for specific situations (e.g., IRS errors, reasonable cause penalties, excess Social Security tax from one employer).
• Strong Documentation – A clear written explanation and supporting evidence greatly improve approval chances.
• Deadlines Apply – File within 2 years of payment or 3 years from return filing, whichever is later, and mail to the correct IRS address.

When to File for IRS Form 843

You’d reach for Form 843 when:

• The IRS slapped you with interest or penalty by mistake.
• You paid a branded prescription drug fee or an annual health insurance provider fee, and you’re in the clear to request a refund
• You’re an employee who’s had excess Social Security, Medicare, or RRTA tax withheld by one employer, and that employer can’t (or won’t) fix the overcollection
• You’re facing fees or penalties tied to incorrect IRS advice, dyed fuel misuse, misstatements due to appraisals, or trust fund recovery—basically a list of very specific exemptions.

Don’t use Form 843 to fix an ordinary income tax return or to ask for a refile of FICA. That’s handled with other forms like Form 941‑X, etc.

Overview: Your Step-by-Step Journey to Filling Form 843

1. Confirm eligibility: Does your situation match one of the acceptable reasons above?
2. Gather your documentation:
   • IRS notice (if one was issued), including section numbers for penalties you’re challenging.
   • Records of payment or assessed penalties.
   • Any supporting evidence: correspondences, receipts, medical records, legal advice or specific IRS guidance.
3. Fill in the form:
   • Personal and taxpayer details.
   • Clearly check the box that matches your reason for filing.
   • Craft a persuasive statement and attach documents.
4. Sign and date properly:
   • Joint filers must both sign.
   • Corporations require an officer’s signature and title.
   • Estates or trusts use a fiduciary signature.
5. Submit it:
   • Mail to the address specified on any IRS notice you received.
   • If it's a branded drug fee, send it to the designated IRS address in Ogden, UT.
6. Keep track of timing:
   • File within two years from payment of tax or three years from filing the return, whichever is later.
7. After filing:
   • If the IRS denies your claim or doesn’t respond within six months, you can file a suit in U.S. District Court or U.S. Court of Federal Claims.

Form 843 Structure: Section-by-Section Breakdown

Let’s walk through the structure of Form 843—you’ll want to navigate with confidence and clarity.

Header: Boxes for Your Reason

Start strong—select the box that best explains your reason:

• Abatement/refund of non-income tax (excluding FICA, RRTA).
• Employee refund of excess Social Security, Medicare, or RRTA tax.
• Penalty abatement due to reasonable cause or IRS error.
• Specialty categories like dyed fuel misuse, branded prescription drug fee, or fees for health insurance providers.

1–3: Identification

• Line 1–3: Name, address, and taxpayer identification number (SSN or EIN depending on entity).

4: Penalty Section Number (if applicable)

• For penalty abatement, write the Internal Revenue Code section number of the penalty you're contesting (e.g., 6676, 6672

5a: Type of Request

• Tick the category (abatement, refund, interest, fee, etc.) that aligns with your situation.

6: Tax Period

• Identify the tax year or period relevant to your claim.

7: Explanation of Facts

• This is your stage. Write a detailed, factual narrative—explain exactly what happened, why it was erroneous or unfair, and what relief you’re seeking.
• Provide documentation such as IRS notices, timelines, third-party statements, or rationale (e.g., illness, reliance on incorrect advice).
• Be concise, yet vivid and clear in describing your cause.

Attachments

Include any relevant files, labeled and referenced in your explanation. Whether it’s a damaged receipt, a physician’s note, or a corrected affidavit—label clearly.

Signature Section

• Individuals/joint filers: Both spouses sign.
• Corporations: Must include officer title.
• Estates/Trusts: Fiduciary signature required.

Tips For Making Your Form 843 Submission Shine

• Match precision: State “Reasonable cause: [insert explanation]” and back it up with proof—doctor’s notes, weather delays, death certificates, legal counsel, or correspondence.
• Label everything: For complex cases, use 'Attachment A – IRS Notice dated MM/DD/YYYY' and reference it in your narrative.
• Stay within limits: Don't overexpand—let your core story shine. If possible, keep your statement to one or two well-crafted pages.
• Deadline savviness: If you're close to the limitation period but still building evidence, file a protective claim to preserve your right while gathering proofs.
• Follow‑up: Mark your calendar—if no reply in six months, you may escalate to court.

Filing Addresses & Logistics

• Use IRS notice instructions first: If you’ve received a notice, it usually tells you where to send your reply.
• Typical special case: For branded prescription drug fee refunds, mail to:

Internal Revenue Service
Mail Stop 4921 BPDF
1973 N. Rulon White Blvd.
Ogden, UT 84404

• Track your submission: Send via certified mail or priority post, keep copies and tracking info.

What to Expect Next

1. Acknowledge receipt: The IRS may send a confirmation.
2. Processing: Typically up to 6 months—during which they may ask for more information.
3. Approval or denial: If accepted, you get a refund or abatement. If denied, you’re entitled to petition the courts.

Simplified Workflow at a Glance