If the IRS charged you a penalty and you paid it quickly to get it over with, I want you to know something: that money isn't always lost. Form 843 exists precisely to ask the IRS to refund a penalty or interest they've already charged you, and most Hispanic business owners in the United States don't even know they can file it. They pay, keep the receipt, and move on. The deadline passes without them even realizing it.
This guide explains what Form 843 is, who qualifies, how long you have to file a claim, and how to build a case that the IRS will accept. It's all straightforward, focusing on the deadlines that really matter.
What is Form 843 and what is it used for?
Form 843 is called, in English, Claim for Refund and Request for Abatement . In simpler terms: it's the formal letter you send to the IRS telling them, "You charged me this penalty; here's why it wasn't valid. Please refund it."
It serves two different purposes:
- Refunding — You already paid the fine or the interest and you want it back.
- Reduction or elimination (abatement) — the fine has been collected but you haven't paid it yet, and you're asking for it to be removed.
There's one detail that confuses many people: Form 843 isn't for correcting the tax itself . If you made a mistake on your return and overpaid, that's fixed with an amended return (Form 1040-X for individuals, 1120-X for corporations). Form 843 is for penalties, interest, and certain additional charges.
Who qualifies to request a refund using Form 843
The IRS doesn't dismiss penalties just because you ask nicely. They need a reason. Here are the ones that do work:
Reasonable cause
This is the most common argument. It means you acted with due diligence and business prudence, but something beyond your control prevented you from complying. Examples the IRS frequently accepts include:
- An illness or death of you or a close relative on the expiration date.
- A natural disaster, a fire, or a robbery that destroyed your records.
- You were unable to obtain the documents on time for reasons beyond your control.
Beware of excuses that don't constitute reasonable cause: "I forgot," "I didn't have the money," or "my business was too busy." The IRS will reject those.
Error or delay on the part of the IRS
If an IRS employee gave you incorrect written instructions and you incurred a penalty for following them, or if the IRS was slow to process something and that delay generated interest, you have a strong case. This is one of the claims that tends to be successful most quickly.
Wrong advice from a professional
If your accountant or tax preparer gave you incorrect technical advice and you acted in good faith, it may constitute reasonable cause. This does not apply if you simply delegated the filing to them and they failed to do so: the responsibility for filing remains yours.
The timeframe: 3 years or 2 years, whichever comes first.
This is where you lose the most money. The IRS's general rule is that you have:
- 3 years in the Making from the date you filed the return, o
- 2 years in the Making from the date you paid the fine,
whatever happens after the two. If you never filed a return for that period, the deadline is two years from the date of payment.
In real-life terms: if you paid a fine in March 2025, you're very likely still within the deadline. If you paid it in 2022 and already filed your tax return for that year, check it today before the deadline passes.
How to fill out Form 843 step by step
The form is only one page long, but what decides the case is what you write on it.
- One form per period and per type of tax. If you were fined for two different quarters, you need two separate forms. This is the most common mistake.
- Identification data. Your name or the business name, address, identification number (SSN, ITIN or EIN) and the exact tax period.
- The amount. The exact figure you are claiming, not an approximation.
- The type of fine. If the IRS notice includes a section code (for example, 6651 or 6698), include it.
- The explanation. This is the part that wins or loses the case. Write down facts with dates: what happened, when it happened, how it prevented you from fulfilling your obligations, and when you rectified the situation as soon as you could. No adjectives or pleas.
- The support. Attach copies: medical reports, birth certificates, fire or police reports, IRS correspondence, emails with your accountant. An explanation without documentation rarely gets approved.
It should be mailed to the address shown on the notice you received from the IRS. Keep a copy of everything and return it with return receipt requested.
Before 843, check if relief applies for the first time
There's a shortcut many people don't know about: the First Time Abate . If it's your first time being penalized, you filed your returns for the previous three years, and you're current on your payments (or have a payment plan in place), the IRS can waive the penalty for a clean record, without needing to prove reasonable cause.
Often, it's resolved with a call to the number on the notice. Even if you've already paid, it's still a good idea to request a refund. And if you're not eligible for relief the first time, that's when Form 843 with reasonable cause comes in.
Mistakes that cause them to deny it to you
After years of assisting Hispanic entrepreneurs with this process, the rejections almost always come from the same place:
- Explaining feelings instead of facts. "It was a very difficult year" is not an argument. "I was hospitalized from March 3rd to 27th, here's the report" is.
- Send the form without any attachments.
- Use form 843 to claim overpaid tax instead of an amended statement.
- Mix several periods in the same form.
- Let the deadline pass. The most expensive of all, and the quietest.
What happens after you send it?
The IRS may take several months to respond. You will receive a letter either accepting your claim (with the check or credit applied to your account) or denying it. If your claim is denied, you have the right to appeal to the IRS Appeals Office, which is independent of the office that made the initial decision.
In the meantime, continue to fulfill your normal obligations. An open claim doesn't suspend anything, and a new fine on top of that weakens the argument that you were diligent.
Frequently Asked Questions about Form 843
How much does it cost to file Form 843?
Nothing. Filing it with the IRS is free. You would only pay if you hire a professional to prepare the case for you.
Can I submit it if I have an ITIN and not a Social Security number?
Yes. The form accepts ITINs as well as SSNs or EINs. If you don't have yours yet, check out our guide on how to get an ITIN.
Does it serve to recover interest, not just fines?
Yes, when the interest was generated due to a delay or error attributable to the IRS. Interest that accrued simply because you paid late is not eliminated.
Can I submit it online?
Form 843 is generally submitted on paper to the address indicated in the notice you received. It is not one of the forms that are routinely filed electronically.
How many times can I use the relief the first time?
It's a clean record relief: it's granted when you have no traffic violations in the previous three years. It's not a benefit you can claim every year.
Check your fines before the deadline
The difference between getting that money back and losing it is often just an afternoon's work. Pull out your IRS notices from the last three years, review which penalties you paid and why, and assess which ones have a documented reasonable cause.
And above all, get your system in order so it doesn't happen again: most of these fines stem from missed deadlines. Here's our guide on how to pay your business taxes and our guide on business taxes in the USA , which includes the complete calendar. If you've been making other startup mistakes, also review the most common errors when starting a business and, if you're still deciding on your structure, LLC vs. Corporation . An unpaid fine also damages your credit history: see how to build business credit.
You can download the form and read the official instructions on the Form 843 page at IRS.gov.
Not sure if your case qualifies? Contact us through our contact page and we'll review the notices you received together.
