Table of Contents
- Line 1
- Line 3
- Line 4
- Line 5
- Line 6
- Line 7
- Requesting Net Interest Rate of Zero on Overlapping Tax Underpayments and Overpayments
Enter the tax period for which you are making the claim for refund or request for abatement. If you are requesting a refund of a branded prescription drug fee, enter the fee year on the “From” line.
Check the appropriate box to show the type of tax or fee for which you are claiming a refund or requesting an abatement. If the claim relates to interest, a penalty, or addition to tax, check the box to indicate the type of tax to which the claim or request relates.
Interest related to the branded prescription drug fee cannot be abated.
If you are requesting a refund or abatement of an assessed penalty, enter the applicable Internal Revenue Code (IRC) section. Generally, you can find the IRC section on the Notice of Assessment you received from the IRS.
The IRS can abate interest if the interest is caused by IRS errors or delays.
The IRS will abate the interest only if there was an unreasonable error or delay in performing a managerial or ministerial act (defined next). The taxpayer cannot have caused any significant aspect of the error or delay. In addition, the interest can be abated only if it relates to taxes for which a notice of deficiency is required. This includes income taxes, generation-skipping transfer taxes, estate and gift taxes, and certain excise taxes. Interest related to employment taxes or other excise taxes cannot be abated. See Pub. 556, Examination of Returns, Appeal Rights, and Claims for Refund, for more information.
The type of tax involved,
When you were first notified by the IRS in writing about the deficiency or payment,
The specific period for which you are requesting abatement of interest,
The circumstances of your case, and
The reasons why you believe that failure to abate the interest would result in grossly unfair treatment.
File only one Form 843 if the interest assessment resulted from the IRS's error or delay in performing a single managerial or ministerial act affecting a tax assessment for multiple tax years or types of tax (for example, where 2 or more tax years were under examination). Check the applicable box(es) on line 3 and provide a detailed explanation on line 7.
The IRS can abate or refund any portion of a penalty or addition to tax caused by erroneous advice furnished to you in writing by an officer or employee of the IRS acting in his or her official capacity.
The IRS will abate the penalty or addition to tax only if:
You reasonably relied on the written advice,
The written advice was in response to a specific written request for advice made by you (or your representative who is allowed to practice before the IRS), and
The penalty or addition to tax did not result from your failure to provide the IRS with adequate or accurate information.
Request an abatement or refund of a penalty or addition to tax because of erroneous written advice by writing “Request for Abatement of Penalty or Addition to Tax Under Section 6404(f)” at the top of Form 843.
Complete lines 1 through 4. Check the second box on line 5a. On line 5b, enter the date of payment if the penalty or addition to tax has been paid.
You must attach copies of the following information to Form 843.
Your written request for advice.
The erroneous written advice you relied on that was furnished to you by the IRS.
The report, if any, of tax adjustments identifying the penalty or addition to tax, and the item(s) relating to the erroneous advice.
You submit the request for abatement within the period allowed for collection of the penalty or addition to tax, or
You paid the penalty or addition to tax, within the period allowed for claiming a credit or refund of such penalty or addition to tax.
Check the appropriate box to show the type of fee or return, if any, to which your claim or request relates. Check the box labeled “1040” to indicate other individual income tax returns (such as Form 1040A or Form 1040EZ).
Check the box labeled “Other” if your claim relates to:
Form 944, Employer's Annual Federal Tax Return. Enter “944” (or “944-SS”) in the space provided.
Form CT-2, Employee Representative's Quarterly Railroad Tax Return. Enter “CT-2” in the space provided.
The branded prescription drug fee. Enter "Fee" in the space provided.
Explain in detail your reasons for filing this claim and show your computation for the credit, refund, or abatement. If you attach an additional sheet(s), include your name and SSN or employer identification number (EIN) on it. Also attach appropriate supporting evidence.
The amount, if any, the employer has reimbursed you for excess taxes withheld.
The amount, if any, of credit or refund claimed by the employer or authorized by you to be claimed by the employer.
If you have paid or are liable for interest on a tax underpayment and have received or are due interest on a tax overpayment for the same period of time, you can request that the IRS compute the interest using the net interest rate of zero.
You can request a net interest rate of zero by writing on top of Form 843 “Request for Net Interest Rate of Zero under Rev. Proc. 2000-26.” You must provide documentation to substantiate that you are the taxpayer entitled to receive the interest due on the overpayment.
Leave line 1 blank. You can enter a dollar amount on line 2 or leave it blank. Complete line 3 to indicate the type of tax. More than one box can be checked.
Do not complete lines 4 and 5. Complete line 6 to indicate the type of return filed. More than one box can be checked.
On line 7, provide all of the following information.
The tax periods for which you overpaid and underpaid your tax liability.
When you paid the tax underpayment.
When you received your tax refund.
The periods that your overpayment and underpayment overlapped and the overlapping amount.
A computation, to the extent possible, of the amount of interest to be credited, refunded, or abated.
If your claim involves more than one tax identification number, please describe the relationship between each of the parties listed in the claim during the overlapping period(s).
|More Online Instructions|