Tax Credit Refund (COVID) | How to Receive in Patriot Software

Payroll Help

Your Payroll Software questions answered here

How Do I Get a Tax Credit Refund from the IRS in Patriot?

Background

If you have accumulated tax credits due to COVID related reasons, you may request an advanced refund of these tax credits by completing IRS Form 7200, Advance Payment of Employer Credits Due to COVID-19.  These tax credits will be claimed when you file your quarterly Form 941 or 944. Full Service Payroll customers of Patriot can complete this form in the software, and our Tax Team will fax the form to the IRS on your behalf. For more details, see the IRS page About Form 7200.

The IRS is estimating a 2-week processing time, and you will receive the tax credit refund directly from the IRS, not Patriot.

Update for 2021

If you have tax credits you’ve earned in 2021, you will not yet be able to request a refund of these in Patriot.

To Request a Tax Credit Refund from the IRS – in 2020

Go to Reports > Payroll Tax Reports > Request Refunds – IRS Form 7200

If you have tax credits for a tax quarter available to be refunded, you can request a refund of credits accumulated through that day.

  • Click “Request Refund.” 
  • If you do not have tax credits available, you will see a message.
  • If you have tax credits available, a box will appear for you to review the unsigned IRS Form 7200, which will be prefilled with your tax credit amount available for refund.  
  • Click “Submit” to submit your tax refund request.  Our Tax Team will fax this directly to the IRS on your behalf.  

To check the status of your refundable tax credits, go to the same page:  Reports > Payroll Tax Reports > Request Refunds – IRS Form 7200

You will see each refund request you have made, the date you made the request, the quarter of the year that the tax credits applied, and the tax credit dollar amount. You can find the prefilled Form 7200 under Settings > Account Settings > Account Activity > View/Upload Files to Support.

You won’t be able to request refunds for previous quarters, because the credits should be accounted for on your quarterly Federal Tax return, Form 941

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