- Days left

Antrel Rolle of NFL's Cardinals slammed with IRS bill

It hasn't been a fun January for Arizona Cardinals safety Antrel Rolle. First, his team was eliminated from the NFL playoffs by the Super Bowl-bound New Orleans Saints. Rolle left that game early with a head injury.

Now the IRS is giving Rolle a second pounding with a bill for $2.2 million bill in back taxes, interest and penalties.
The IRS alleges that Rolle understated his taxable income by more than 50% for 2005 and 2006. For 2005, Rolle reported taxable income of $669,000; the IRS claims he made $2.15 million. For 2006, Rolle reported $3.2 million; the IRS said it should have been $6.1 million.

What likely attracted IRS attention in the first place was Rolle's Schedule C for "management and consulting" in both years. A Schedule C with large losses and little in the way of revenue can sometimes be an audit trigger. Rolle might have raised some eyebrows when he claimed $557,000 in revenue but a whopping $1.9 million in expenses, including $372,000 for renting and leasing vehicles. The IRS disallowed all but $71,000 of the expenses.

Rolle also claimed $2.5 million in cash contributions to two churches: the Victory Chapel Christian Fellowship Church (VCCFC) and Victory Chapel Church (VCC). Rolle was unable to produce sufficient records to verify these donations. The letter that he produced to verify the contributions for one church contained errors, and the address of the church was similar to Rolle's home. The address listed for the other church was actually a doctor's office.

Rolle isn't quibbling with most of the findings of the audit. Nonetheless, he filed a lawsuit in U.S. Tax Court on Dec. 11, 2009, claiming that the IRS violated the Taxpayer Bill of Rights, denied him due process and failed to treat him fairly. He has requested a Los Angeles trial -- even though he initially claimed he lived in Sacramento -- but that might be on hold while he resolves a more important issue: He (or his lawyer) forgot to pay the filing fee. The judge has ordered that the fee must be paid by Feb. 1, 2010, or Rolle's case will be dismissed.

Rolle's attorney isn't offering much in the way of comment. It's likely that the matter will not be resolved for some time; it's not unusual for matters filed in Tax Court to sit for about a year before trial. Of course, if the Cards manage to make it to the Super Bowl next year, Rolle might have some serious rearranging to do with respect to his schedule. I'm not betting on that one.

Increase your money and finance knowledge from home

Getting out of debt

Everyone hates debt. Get out of it.

View Course »

Advice for Recent College Grads

Prepare yourself for the "real world".

View Course »

TurboTax Articles

Ways To Increase Your Tax Refund You Never Thought About

Laying the groundwork for a tax refund requires some simple tax planning, a little research and some forethought. Reviewing your tax status, consulting your spouse when filling out your W-4s and taking advantage of several tax credits can help you increase your tax refund. TurboTax also can help decide which credits can get you the biggest refund.

What Extra Tax Deductions Should I Make Sure To Take?

The federal government offers tax deductions and credits to reduce taxable income under certain circumstances. There are several that are often overlooked, including deductions for job hunting, caregiver expenses for dependents and children while you work, a credit to reduce taxes for moderate- to low-income earners and the premium tax credit associated with the Affordable Care Act. TurboTax can help determine if you qualify for these credits and deductions.

8 Things You Think Are Tax Deductible That Aren't

There?s a fine line between looking to save money on your taxes and taking deductions that will raise eyebrows at the Internal Revenue Service. Some taxpayers are tripped up by expenses that they assume are tax deductions, but don?t qualify under IRS guidelines. Here are a dozen items that can lead to unpleasant surprises in case of an audit.

9 Things You Didn't Know Were Tax Deductions

Few realizations are more painful than realizing that you forgot to include a tax deduction that would have lowered your tax bill or increased your tax refund on your tax return. Here are some tax deductions that you shouldn't overlook.

Add a Comment

*0 / 3000 Character Maximum