Sometimes you need to ask the IRS to correct errors on your tax returns or penalties assessed against you for late filing and payment. Occasionally, the IRS can make mistakes on your returns and they owe you money. Refunds and abatements require a particular form, IRS Tax Form 843, which our tax resolution attorneys can explain.
Like all other IRS forms, Form 843 has specific uses and cannot be used for other reasons. If you need to correct a mistake on your own tax return, this is not the correct form. To get the right form and other information, you need help from an IRS tax form 843 lawyer in Phoenix.
When Do I Use Form 843?
Abatement lets you ask the IRS to reduce or eliminate penalties imposed on you after filing your taxes. You may have filed or paid late, or, if you are a business, you may have failed to remit taxes on time. The IRS may reduce or eliminate the penalties if you have reasonable cause for the late filing or payment.
Form 843 also lets you ask the IRS to refund money due to IRS or other calculation errors. For instance, employers are supposed to remit excess withholding taxes for Social Security or Medicare. If they refuse or cannot repay you, the IRS can refund the difference.
This form also allows you to recover accrued interest, excise, and other non-income taxes, and fees not covered by the income tax form.
How Do I Use the Form?
Our Phoenix attorneys will walk you through the list of requirements on IRS Form 843. You need to show the IRS a “reasonable cause” for why you filed or paid late and your penalties should be removed. Some valid reasons for such delays include:
- Death or serious illness in the immediate family
- A natural disaster or other local disruption that prevented you from complying
- Inability to obtain records in a timely manner
- Legal disability (which does not mean a physical or mental disability)- If you were incarcerated or hospitalized at a time when you should have filed or paid, this can be a valid reason for a delay
Form 843 includes space for a detailed explanation, and you should also attach all supporting documents. Our Phoenix-based lawyer can explain how to obtain the information and what you should say in your Form 843 narrative.
First Time Penalty Abatement
The First Time Penalty Abatement (FTA) is an option if you meet all other qualifications for the policy. The FTA can eliminate all penalties for a failure to file or pay, if:
- You have a clean history for the past three tax years
- You filed all tax returns or extensions
- You have paid all taxes owed, or made arrangements to do so
- There are no other factors that would cause a refusal
Penalties continue to increase even while your attorney negotiates with the IRS. It’s a good idea to pay the tax and then ask your attorney if you qualify for the FTA. This prevents excessive penalties in the event you do not qualify for the abatement.
Get Legal Help in Phoenix From an IRS Tax Form 843 Lawyer
IRS tax forms are not easy to fill out, especially when you’re asking for money back. The Phoenix attorneys at Dayes Law Firm can give you advice on the IRS Tax Form 843 and help you avoid excess penalties. Call us for a free consultation today.
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