Judge Jeffrey S. (“Schwer”) Arbeit reminds Veleta Williams, T. C. Memo. 2025-90, filed 8/25/25, that an IRS Notice CP71A isn’t a SND or a Section 7436 NOD, even though it shows a $20K balance due. Yes, there were assessments back seven (count  ’em, seven) years ago. But those were RBAs (Restitution-Based Assessments), not deficiencies.

Veleta and brother Charles pled to tax fraud and health care fraud charges in connection with their group home operation. They were charged with nonfiling and nonpayment of FICA/FUTA and not providing employees with W-2s or 1099s.

The operation was a C Corp, so Judge Schwer Arbeit denies Veleta’s claim that Tax Court can review her claims that the amount stated in the CP71A is excessive. Only the employer can challenge that, and Veleta isn’t the employer, the C Corp is.

And the CP71A isn’t a SND, because it speaks of assessment based on restitution. When Veleta and brother Charles pled out, the Court ordered them to pay restitution.

Restitution compensates the fisc for the losses it suffered due to Veleta’s and brother Charles’ delictions. Restitution does not encompass or include whatever taxes are owed.

“The Notice CP71A, an annual reminder to taxpayers of an outstanding liability, is the only notice in the record. It neither indicates any sort of determination by the IRS of additional taxes due from petitioner, nor specifies, computes, or provides information with respect to any such amount. The Notice CP71A is not a Notice of Deficiency. Moreover, respondent has searched his records and states that he has found no record of mailing any Notice of Deficiency to petitioner with respect to any taxable period at issue.” T. C. Memo. 2025-90, at pp. 5-6. (Citations omitted).

Taishoff notes there’s no mention of Section 6672 TFRPs. Were these not imposed upon Valeta?