Financial Glossary
Form 843 (Claim for Refund and Request for Abatement)
Form 843 is an IRS form used to claim a refund or request abatement of certain taxes, penalties, fees, and interest that are not handled through a regular tax return. Businesses commonly use it to ask the IRS to remove penalties assessed in error, abate interest caused by IRS delays, or recover certain wrongly collected amounts. It is not used for income tax refunds, which are claimed through amended returns instead.
Problem & Application
When a business receives a penalty notice it believes is unwarranted, such as a late-deposit or information-return penalty, Form 843 is often the proper channel to request relief. Owner-operated businesses that hit a one-time filing or deposit slip may qualify for abatement when they have an otherwise clean compliance history. Filing it correctly, with a clear explanation and supporting facts, materially improves the chance of approval.
In Short
Form 843 is the route to challenge improper penalties and interest, and a well-documented request is far more likely to succeed.