Form 843: Claim For Refund And Request For Abatement

AAA

DEFINITION of 'Form 843: Claim For Refund And Request For Abatement'

A tax form distributed by the Internal Revenue Service (IRS) to claim a refund for certain taxes, interest and penalties. 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.


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.

INVESTOPEDIA EXPLAINS 'Form 843: Claim For Refund And Request For Abatement'

Taxpayers have to file a separate Form 843 for each tax period and each tax type upon which an abatement or refund is being requested.


The IRS penalizes taxpayers who claim an excessive amount of refund. If the taxpayer is found to have abused the system, he or she will be fined 20% of the amount determined to be excessive. The penalty may be waived if the taxpayer had a reasonable basis to make the claim.

RELATED TERMS
  1. Tax Refund

    The return of excess amounts of income tax that a taxpayer has ...
  2. Excess Employer Withholding

    When one or more employers withhold more than the aggregate maximum ...
  3. Abatement

    A reduction in the level of taxation faced by an individual or ...
  4. Withholding

    The portion of an employee's wages that is not included in his ...
  5. Medicare

    A U.S. federal health program that subsidizes people who meet ...
  6. Social Security

    A United States federal program of social insurance and benefits ...
Related Articles
  1. Next Season, File Taxes On Your Own
    Taxes

    Next Season, File Taxes On Your Own

  2. Understanding The U.S. Tax Withholding ...
    Taxes

    Understanding The U.S. Tax Withholding ...

  3. Tax Withholding: Good For Government, ...
    Taxes

    Tax Withholding: Good For Government, ...

  4. 3 Common Tax Questions Answered
    Taxes

    3 Common Tax Questions Answered

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center