Form 843: Claim For Refund And Request For Abatement


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.

BREAKING DOWN '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.

  1. Tax Refund

    The return of excess amounts of income tax that a taxpayer has ...
  2. Medicare

    A U.S. federal health program that subsidizes people who meet ...
  3. Abatement

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

    A United States federal program of social insurance and benefits ...
  5. Withholding

    The portion of an employee's wages that is not included in his ...
  6. Federal Insurance Contributions ...

    A U.S. law requiring a deduction from paychecks and income that ...
Related Articles
  1. Taxes

    Next Season, File Taxes On Your Own

    Master these fundamentals and you'll be doing your own taxes with minimal stress.
  2. Taxes

    Understanding The U.S. Tax Withholding System

    Understanding the origins of our tax withholding system is crucial to getting the most out of it.
  3. Taxes

    Tax Withholding: Good For Government, Bad For Taxpayers

    It's important to understand where that money coming out of your paycheck goes and why - after all, you earned it.
  4. Taxes

    3 Common Tax Questions Answered

    We clarify some rules that often puzzle taxpayers.
  5. Economics

    Explaining Fair Market Value

    Fair market value is the price at which a buyer and seller are willing to exchange a good.
  6. Investing

    How Shackling Offshore Banks Will Impact You

    FATCA regulations have cast a wide net on offshore banking activities, and many innocent account holders might get caught in its tangle.
  7. Professionals

    Longevity Annuity Tax Rules: What You Need to Know

    A look inside the intricacies of the IRS' recently finalized longevity annuity tax rules.
  8. Investing Basics

    Understanding How Dividends Are Taxed

    Learn how dividends are taxed by the IRS, and understand the different types of dividend income as well as the capital gains tax rates.
  9. Taxes

    What IRS Form 990 Tells About a Nonprofit

    Want a picture of an organization's activities? This annual form, open to the public, sums up everything from salaries paid to missions accomplished.
  10. Taxes

    What IRS Form 1023 Is Used For

    To be treated as a tax-exempt organization, start by filling out this form.
  1. Can I borrow from my annuity to put a down payment on a house?

    You can borrow from your annuity to put a down payment on a house, but be prepared to pay an assortment of fees and penalties. ... Read Full Answer >>
  2. Do financial advisors prepare tax returns for clients?

    Financial advisors engage in a wide variety of financial areas, including tax return preparation and tax planning for their ... Read Full Answer >>
  3. Do mutual fund companies pay taxes?

    Mutual funds do not pay taxes on income if they meet certain regulatory requirements. Mutual funds are incorporated as regulated ... Read Full Answer >>
  4. How do you calculate penalties on an IRA or Roth IRA early withdrawal?

    With a few exceptions, early withdrawals from traditional or Roth IRAs generally incur a tax penalty equal to 10% of the ... Read Full Answer >>
  5. Are credit card rewards taxable?

    Credit card rewards are taxable in the United States some of the time. The Internal Revenue Service (IRS) classifies credit ... Read Full Answer >>
  6. How is market value determined in the real estate market?

    Anyone who has ever tried to purchase or sell a home has probably heard a lot about the property's fair market value, or ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Section 1231 Property

    A tax term relating to depreciable business property that has been held for over a year. Section 1231 property includes buildings, ...
  2. Term Deposit

    A deposit held at a financial institution that has a fixed term, and guarantees return of principal.
  3. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  4. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  5. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  6. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!