Note:

The taxpayer was not subject to federal tax deposit penalties for retaining eligible deposits/payments as outlined in (a) above provided the employer did not also seek payment of an advance by filing a Form 7200 for the same credit amount that was used to reduce deposits (an employer could not avoid penalties by reducing deposits and seeking an advance for the same amount).

These credits posted to the module as a TC 766 CRN 299 using the first day of the tax period as the transaction date unless the TC 766/767 is the result of an adjustment with an interest computation date, in which case, the interest computation date should be used as the transaction date. Keep this in mind when researching payment patterns and liability schedules.