Form 843 logistics

Forum|Forum|1 year ago
October 19, 2024
10 replies
47 views

My tax return (claiming refund) was rejected and I was assessed penalty charges for that. I went to the local IRS office and they told me to file form 843. I now have two questions:

1. Should I file one or two forms 843 for the tax and the penalty directly associated with it? The penalty shows up in my IRS account under the original tax year, though it was assessed after the rejection of the tax return.

2. Should I include interest when claiming a refund using form 843? If so, from when and till when? (eg., from 45 days after the original due date of the tax return, till the date I fille 843?)

Many thanks!

Mike9241

Level 15

one 843 for everything for any single tax year. whether interest can be abated depends on the facts and circumstances. for example, you are charged an underpayment penalty. you ask for abatement because you have reasonable cause. the IRS can abate the 2210 penalty but not the interest. If the iRS imposes the same penalty but is in error in that you don't owe the 2210 penalty then both the penalty and interest will be abated

Mike9241

cmy28Author

Level 2

Thank you very much.

If I make multiple claims in one form 843 (for the same tax year, as you suggested), and if the IRS does not approve of everything, will they reject the form altogether or could they approve part of the claims?

In addition to penalty, I will also try to reclaim the rejected tax refund in form 843 (not income tax). Should I include interest for that tax?

cmy28Author

Level 2

@cmy28 wrote:

I see. Interest should have been paid if they refunded it to my tax return. However they denied it and I now claiming it again by form 843.

Suppose my claim in form 843 is approved (of the original tax amount), would you think they would still add interest automatically (to the tax amount, not the penalty) given that it's a 843 not a tax return?

See this link.

https://www.irs.gov/payments/interest#pay

It also looks like the IRS does advise you can ask for interest. This will at least get your request on the record and document your reasons and calculations. However, I would not expect them to pay it unless it was one of the items where interest is authorized or required.

Right...So it seems that I could indeed calculate the interest and put it there in my form 843, right?

As mentioned before, interest would have been required if my original tax return was not denied.

As long as they consider each item (tax, interest, penalty, etc.) separately, in the worst scenario they could just say "no" to the interest, but would still evaluate the tax item separately. Does this plan seem reasonable?