What Is IRS Form 843, and How Do I Use It to Request a Penalty Refund?

Form 843, Claim for Refund and Request for Abatement, is the IRS form you use to request a refund of penalties you already paid or an abatement of penalties that have been assessed but not yet collected. You can use it for failure-to-file penalties, failure-to-pay penalties, estimated tax penalties, and certain other assessed amounts. Form 843 is not used for income tax refunds (that is what Form 1040-X is for) or employment tax claims.

• Penalty refund if you already paid a penalty you believe was incorrect or eligible for relief
• Penalty abatement if the IRS assessed a penalty you have not yet paid
• Interest abatement in limited cases (IRS error, unreasonable delay, or erroneous written advice)
• Certain tax refunds, such as Social Security tax withheld in error from a nonresident alien

When to use Form 843 vs. other forms:

How to complete Form 843:

• Lines 1-2: Your name, SSN, and spouse’s information if joint.
• Line 3: The tax period and type of return (1040, FBAR, etc.).
• Line 5a: Check the box for the type of claim (abatement, refund, or credit).
• Line 7: Provide a detailed explanation of why you qualify for relief. Cite reasonable cause, first-time abatement, or IRS error.
• Attachments: Include supporting documents (IRS notice, payment records, reasonable cause evidence).

Filing deadline: You generally must file within three years from the date you filed the original return or two years from the date you paid the penalty, whichever is later.

Expats who catch up through Streamlined Filing and later discover they paid penalties that should have been waived can use Form 843 to recover those amounts.