- 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

How Financial Planners go Grocery Shopping

Learn to shop smart and save.

View Course »

How to Avoid Financial Scams

Avoid getting duped by financial scams.

View Course »

TurboTax Articles

What is IRS Form 8824: Like-Kind Exchange

Ordinarily, when you sell something for more than what you paid to get it, you have a capital gain; when you sell it for less than what you paid, you have a capital loss. Both can affect your taxes. But if you immediately buy a similar property to replace the one you sold, the tax code calls that a "like-kind exchange," and it lets you delay some or all of the tax effects. The Internal Revenue Service (IRS) uses Form 8824 for like-kind exchanges.

What are ABLE Accounts? Tax Benefits Explained

Achieving a Better Life Experience (ABLE) accounts allow the families of disabled young people to set aside money for their care in a way that earns special tax benefits. ABLE accounts work much like the so-called 529 accounts that families can use to save money for education; in fact, an ABLE account is really a special kind of 529.

What is IRS Form 8829: Expenses for Business Use of Your Home

One of the many benefits of working at home is that you can deduct legitimate expenses from your taxes. The downside is that since home office tax deductions are so easily abused, the Internal Revenue Service (IRS) tends to scrutinize them more closely than other parts of your tax return. However, if you are able to substantiate your home office deductions, you shouldn't be afraid to claim them. IRS Form 8829 helps you determine what you can and cannot claim.

What is IRS Form 8859: Carryforward of D.C. First-Time Homebuyer Credit

Form 8859 is a tax form that will never be used by the majority of taxpayers. However, if you live in the District of Columbia (D.C.), it could be the key to saving thousands of dollars on your taxes. While many first-time home purchasers in D.C. are entitled to a federal tax credit, Form 8859 calculates the amount of carry-forward credit you can use in future years, not the amount of your initial tax credit.

What is IRS Form 8379: Injured Spouse Allocation

The Internal Revenue Service (IRS) has the power to seize income tax refunds when a taxpayer owes certain debts, such as unpaid taxes or overdue child support. Sometimes, a married couple's joint tax refund will be seized because of a debt for which only one spouse is responsible. When that happens, the other spouse is said to be "injured" and can file Form 8379 to get at least some of the refund.

Add a Comment

*0 / 3000 Character Maximum