Reminder:

Failure to Pay (TC 276) will not recalculate if the payment is late and dated within the same monthly period as the 23C date of the notice.

Also, use Label 2 if the notice being reviewed is a settlement notice and an adjustment notice is being generated in the next cycle and the deadline has passed for intercepting the next notice using the Local Control File (LCF) which is Thursdays at 12 PM Local Time. See IRM 3.14.2.5.4, NRPS Local Control File for more information.

Do not use Label 2 when there is a pending credit and the following are all true:

No math error or credit discrepancy will remain

Returning to taxpayer figures

Module balance is overpaid or even balance