Refund & Abatement Navigator
Find out if you can use Form 843 to claim a refund, or request to have penalties or interest removed.
First, what is your situation?
Overpaid Employment Tax
For employees whose employer withheld too much FICA or RRTA tax.
Unfair Penalty
Request to remove a penalty due to reasonable cause.
IRS Error or Delay
Request to remove interest or penalties caused by the IRS.
Net Interest Rate
For overlapping underpayments and overpayments.
Refund of Overpaid Employment Taxes
This benefit allows employees to claim a direct refund from the IRS if their employer withheld too much Social Security, Medicare, or Railroad Retirement Tax Act (RRTA) tax and will not adjust the overcollection.
How It Works
This typically happens when tax is withheld on exempt wages or after your wages for the year have exceeded the Social Security maximum. Form 843 provides a way to get this money back when your employer can't fix it.
What You'll Need
- Your Form W-2 to prove the amount withheld.
- A statement from your employer detailing the overpayment and any reimbursement, if possible.
- If you can't get a statement, you must provide your own detailed explanation.
Abatement of Penalties for Reasonable Cause
The IRS may agree to remove penalties for issues like late filing or late payment if you can demonstrate you had a valid reason for not complying on time.
How It Works
"Reasonable cause" depends on your specific facts and circumstances. If the IRS agrees that your reason is valid and the failure was not due to willful neglect, they can abate (remove) the penalty.
What You'll Need to Explain
- Events outside your control, such as a natural disaster, fire, or civil disturbance.
- Inability to get records, or death or serious illness of yourself or an immediate family member.
- You must provide a detailed explanation and any supporting documentation (for example, hospital records, insurance reports, etc.).
Abatement for IRS Error or Delay
If the IRS made a mistake or caused an unreasonable delay in handling your tax matters, you may not have to pay the interest or penalties that accrued as a result.
How It Works
There are two main scenarios:
- Erroneous Written Advice: If you requested advice from the IRS in writing, received incorrect advice in writing, and then received a penalty for following that advice, you can request abatement.
- IRS Delays: If an IRS employee's error or delay in performing a procedural or mechanical task (a "ministerial or managerial act") caused you to be charged interest, you can request that the interest for that period be removed.
What You'll Need
- Copies of your written request for advice and the incorrect written response from the IRS.
- A clear timeline of events and correspondence to demonstrate an unreasonable delay by the IRS.
Request for Net Interest Rate of Zero
This benefit applies if you had a period where you simultaneously had a tax underpayment and a tax overpayment. You can request the interest be "netted" to zero for that overlapping period.
How It Works & Calculator
Normally, the interest rate the IRS charges you for underpayments is higher than the rate it pays you for overpayments. This netting process prevents you from being unfairly charged that higher rate on an amount that you had already overpaid in another area. Use the simple calculator below to estimate your potential savings.
Difference between underpayment rate and overpayment rate.
Estimated Annual Interest Saved
$0