Caution:

If the refund statute has expired, the credit application must not exceed the tax liability, interest and penalties. Follow local procedures if the notice module is a statute year.

After requesting application of the credit, complete notice disposition as if payment(s) will post to the module. Refer to the Notice Disposition Decision Table below.

If

Then

Payment(s) is timely and all penalties will abate.

Void the original notice and request the additional notice that will generate utilizing LCF. The additional notice should also be voided. IRM 3.14.2.5.4.1, NRP97 Input Information.

Payment(s) is late or unsure of TC 186 penalty recomputation.

Apply Label 2 and allow the next notice to generate.

Input CC STAUP for 9 cycles on balance due accounts to prevent erroneous notices.