Okay for this video i wanted to quickly cover a request for a refund of fica taxes so fica taxes are payroll taxes withheld from your wages and so in certain cases in the u.s you might be exempt from fica taxes and so if you have them withheld from your paycheck you can file a refund claim to get those back so i've got one slide in front of us here with some of the rules and then an example uh form 843 which is the filing that's required in order to get this refund so generally if you are living and working in the u.s for a us-based employer your wages are going to be subject to federal payroll tax that is the baseline rule that applies to 99 of people that are living and working in the united states um the payroll tax is assessed under the um federal insurance contributions act that's where we get fica from and the tax rates um as of the end of 2022 um and going forward foreseeably here is going to be 6.2 percent um of social security tax and then a 1.45 medicare tax um these are assessed on the employee wages and then the employer has to match it um so it's basically these amounts times two in total but you as the employer are responsible for half so if we look at an example here we've got john he's an accountant for a company in florida he makes 40 00 a year which is all going to be subject to fica so john's employer has to take 2 480 of social security tax out of his paychecks throughout the year so that's six point two percent times forty and then five hundred and eighty dollars in medicare...
Are Form 843 Abated: What You Should Know
R. 986.) and the list of all tax penalty categories that are eligible for relief from the IRS (IRS.gov). Why Don't I Get Abatement For Failure To File or Pay Penalties? Penalties for failing to file or pay your income tax often include interest, interest-free periods, a 10% penalty on the unpaid balance, interest charges and, some states, even additional or different taxes. You can file to make sure your penalties are paid or eliminated in some other way, but if you are denied this relief, that may mean that you don't qualify for relief because your failure to file, to pay, or to pay a penalty is part of the same tax violation. Here are some of the reasons why you are not eligible for abatement of tax penalties: You did not make a timely return. In many courts, if the statute of limitations for filing the return has not expired, you are not eligible to abate penalties. You made a late return only to be able to demonstrate that you actually filed your return for the previous year. Your return was not signed. You will still owe the tax penalty if you signed a return as required, and even if you did not sign the return. You have an outstanding tax lien. Lining is a situation in which a person or entity is responsible for a tax debt by making a payment to a federal government agency for a tax debt owed. If you owe taxes on a debt, and because the IRS is the agency most likely to collect the debt, make sure that the lien is not satisfied before submitting a return. If your late filing deadline isn't more than 60 days, you generally don't qualify for abatement of penalties. Tax Tip: The IRS Can Request An Abatement of Tax Penalties (C.R. 986). Does IRS Have To Make An Excise Tax Request To Abate A Penalty If I Can't Pay or File the Return? No. You do not have to make an excise tax request to abate a penalty if the amount of penalties is more than 3,000. Some states have an excise tax statute that is broader than this statute, including some states that allow abatement of penalties for penalties that are more than 3,000.
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