Example:

The overpayment of $5,000.00 was applied to Form 941 for tax period ending 03-31-2025.

Use Label 7 when all the following applies:

The notice module is overpaid.

A credit elect (TC 830) or lump-sum offset (TC 820) is shown as pending (AP, PN, UP, CU, TP or RS) for the same EIN or, a debit transaction for a payment (TC 652, 662, 612, 672, 622,642) is pending (AP, PN, UP, CU, TP or RS) for the same EIN and the module is in even or credit balance.

Do not use label 7 if:

A payment, credit elect or lump-sum offset is being transferred to a different TIN. If the TIN is different retype the notice.

The notice module is changing from an overpayment to a balance due, stop the refund and retype the notice.