IRS Form 843 – How To Request Abatement & Refund for Expats

Mistakes happen, even with the IRS. If you’ve been wrongly hit with a penalty or interest, IRS Form 843 can offer relief. As a U.S. expat dealing with more complex and potentially higher taxes, knowing how and when to use this form could save you thousands of dollars.

What is IRS Form 843 Used For?

You use Form 843 (Claim for Refund and Request for Abatement) to request a refund or ask the IRS to remove certain penalties, interest, or fees applied in error or under circumstances beyond your control.

You can file Form 843 to:

• Request a refund of penalties or interest assessed by error.
• Ask for abatement of penalties if you qualify for relief (like first-time abatement or reasonable cause).
• Claim a refund due to IRS error, such as wrong advice or misapplied payments.
• Recover excess Social Security or Medicare taxes that were wrongly withheld from your pay.

Note that Form 843 does not apply to regular income tax refunds. If you simply overpaid your taxes or forgot to claim a deduction or credit, you’ll need to file Form 1040-X to amend your return and request a refund.

What penalties or interest can be abated using Form 843?

Form 843 works best when you’re trying to remove IRS penalties like:

• Failure to file
• Failure to pay
• Failure to deposit employment taxes
• Erroneous trust fund recovery penalties
• Interest caused by IRS errors or delays

You can’t use Form 843 to remove interest that accrued simply because you didn’t pay your tax on time. But if the interest was due to IRS mistakes, such as processing delays or incorrect notices, you can request an interest abatement.

The form also works for requesting refunds of certain employment taxes or gift tax penalties, depending on the situation.

Who can file Form?

Anyone who’s received an unfair IRS penalty notice or paid a penalty can file. That includes:

• Individuals
• Small business owners
• Estates and trusts

If you’re living abroad and received a penalty for missing a filing deadline, but you had reasonable cause, you can file the Form 843 to request penalty abatement.

You can file the form yourself, or you can have an authorized representative do it for you.

If someone files on your behalf, they’ll need to attach Form 2848 (Power of Attorney) showing that you’ve permitted them to act for you on this specific request. Make sure you’ve signed Form 2848 and that it includes authorization for penalty and refund matters.

If you’re filing on behalf of a deceased taxpayer, the rules are different.

• If you filed the return and are still acting as the decedent’s representative, include a statement confirming your role.
• If not, you’ll need to attach certified copies of letters testamentary or administration to prove your authority.
• And if you’re claiming a refund for the decedent, include Form 1310 along with Form 843.

For estates and trusts, the form must be signed by the fiduciary, usually the trustee or executor.

What counts as reasonable cause when requesting penalty abatement with Form 843?

Reasonable cause means you made every effort to follow the rules, but something outside your control got in the way. The IRS reviews each request individually, so your explanation needs to show that you acted in good faith and took reasonable steps to comply.

Here are some situations that may qualify:

• A natural disaster, fire, or civil disturbance disrupted your ability to file or pay
• You or an immediate family member was seriously ill, passed away, or was unavoidably absent
• Technical issues prevented  you from submitting your return or payment on time
• You made a good-faith effort to get your records, but couldn’t access them
• You faced a complex tax situation and genuinely tried to understand the requirements

The IRS usually won’t accept excuses like “I didn’t know,” “my tax preparer messed up,” or “I didn’t have the money.” Lack of funds or relying on someone else isn’t enough unless there are other facts showing you still tried to comply.

To support your request, include a clear, honest, reasonable cause letter with your Form 843. Explain to the IRS what happened, when it happened, and what you did to try to stay compliant. The more specific you are, the better your chances of getting that penalty wiped out.

How to fill out Form 843 (step-by-step)

Form 843 is a two-page form, and here’s how to complete it:

1) Top Section – Check the right box

At the top of the form, choose the reason you’re filing. This includes things like penalty abatement, interest due to IRS error, or excess Social Security tax. Only check one box. If your reason doesn’t fit any listed category, check “Other” and describe your situation.

2) Name and ID Info

Enter your full name, SSN or ITIN, and mailing address. If it’s related to a joint return, include your spouse’s name and SSN too. If you’ve moved recently, file Form 8822 to update your address with the IRS.

3) Line 1 – Tax period

Enter the start and end dates of the tax year or quarter tied to your request. If you’re filing for more than one year, use a separate Form 843 for each.

4) Line 2 – Amount to be refunded or abated

Enter the dollar amount you’re requesting back or asking the IRS to cancel.

5) Line 3 – Date(s) of payment

If you already paid the penalty or interest, list the exact date(s). Use a separate sheet if needed.

6) Line 4 – Type of tax

Check the box for the type of tax involved. Most expats will use “Income” or “Civil penalty.”

7) Line 5 – Type of return

Check the box for the form the issue is related to, like 1040 or 1120. If it’s not listed, use “Other.”

8) Line 6 – IRC code section

If this involves a penalty, enter the section of the tax code shown on your IRS notice (for example, 6651 or 6038).

9) Line 7 – Why you’re filing

Check the box that best describes your reason. It could be interest from an IRS error, bad advice, or reasonable cause. If none apply, choose “None of the above.”

10) Line 8 – Explanation

This is where you tell your story. Explain what happened, why the penalty or interest should be removed, and how you calculated the amount. Attach your reasonable cause letter and any documents that support your request.

11) Signature

Don’t forget to sign and date the form. If it’s for a joint return, both spouses must sign. Estates, trusts, and corporations must have the fiduciary or officer sign with the title included.

If you’re working with a tax professional, they’ll need to sign as a paid preparer and include their details.

Double-check everything before mailing. Missing or incorrect information can delay your refund or cause your request to be denied.

Where do you send IRS Form 843?

Where you mail Form 843 depends on why you’re filing and whether you’re responding to an IRS notice.

If you received a notice about a penalty, fee, or tax adjustment, follow the mailing instructions listed on the notice. For all other cases, like requesting abatement for penalties, interest, or excess Social Security or Medicare tax, send the form to the IRS address that corresponds to the type of tax or return involved.

To find the correct mailing address, check the official IRS instructions for Form 843 at irs.gov/instructions/i843.

We also recommend using a tracked mailing service like USPS Certified Mail or an international courier if you’re sending it from abroad. That way, you’ll have proof it was delivered.

How long do you have to file Form 843?

You must file Form 843 within 2 years of paying the penalty or within 3 years of filing the related tax return, whichever is later.

If you miss the deadline, the IRS will reject your claim, even if your request is valid.

So don’t wait. File as soon as you realize the IRS may have made a mistake, or as soon as you qualify for penalty relief.

What supporting documents should you include with Form 843?

The more evidence you give the IRS, the stronger your case.

Your supporting documents may include:

• IRS notices showing the penalty or interest assessed
• Proof of timely filing, like certified mail receipts
• Explanation letters showing reasonable cause
• Evidence of overseas complications, like embassy letters, hospital records, or airline delays

You must attach everything to one packet. Missing supporting documents are a common reason why Form 843 gets denied or delayed.

Frequently Asked Questions

Can I file Form 843 to remove late filing or payment penalties?

Yes, as long as you have a valid reason, such as illness, natural disaster, or another situation beyond your control. The IRS calls this “reasonable cause,” and they expect you to explain it clearly. Be sure to attach documents that back up your story.

How long does it take the IRS to process Form?

The IRS typically takes about 2 to 3 months to process Form 843. If your case is more complex or missing information, it could take longer. You won’t always get updates during that time, so keep a copy and follow up if needed.

Can I request first-time penalty abatement with Form 843?

Yes, you can, but it’s not the only way. If you qualify for first-time abatement, calling the IRS directly is often faster. If you’re already filing Form 843 for another reason, you can include the first-time abatement request in the same form.

Who qualifies for penalty abatement?

You might qualify for IRS penalty abatement if you’ve filed all required returns, paid or set up a payment plan, and haven’t had any penalties in the past three years. This is called First-Time Abatement, and it’s the IRS’s way of giving you a one-time pass. If the IRS gave you bad advice or made a mistake, you could also qualify under administrative relief.

Can I file Form online?

No, the IRS doesn’t accept Form 843 electronically. You’ll need to print and mail it to the IRS. Double-check the latest instructions to make sure you’re sending it to the correct address.

Can I file Form more than once?

Yes, you can file it for different tax years or different penalties. Each request needs to be for a specific charge and must include a valid reason.

Should you file Form 843 on your own?

If you have a simple situation and you’re confident in explaining your case, you can fill out IRS Form 843 yourself. Just be sure to follow the IRS Form 843 instructions carefully and include supporting documents.

But if you’re unsure whether you qualify or if you want to avoid dealing with the IRS, working with a tax professional can save you time, stress, and potentially thousands in penalties.

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