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.

How to Find Your Adjusted Gross Income (AGI) to E-file Your Tax Return

As opposed to the amount of gross income you made last year, your adjusted gross income (AGI) takes into account certain adjustments to your income. Your AGI is the amount of income you made which is the basis for many of the tax calculations when filing your taxes. That’s an important number come tax time, but not just because it impacts the deductions you’re eligible for—your AGI is now also a kind of identification.

Read More

Brought to you by TurboTax.com

Video: What Are IRS Publications?

IRS publications can help fill in the gaps and ease your frustrations when preparing your tax return. Learn about IRS publications with help from TurboTax in this video clip.

Read More

Brought to you by TurboTax.com

Video: Tax Deductions When Buying or Selling a Home

Learn seven great tax deductions you may be able to use if you’ve bought or sold a home this year. Owning a home means you may be elgible for deductions and credits for origination fees, mortgage interest, property taxes, and more.

Read More

Brought to you by TurboTax.com

Are You Exempt From Health Care Coverage?

The Affordable Care Act, or Obamacare, is an individual mandate that requires all eligible Americans to have some form of basic health coverage. For tax years prior to 2019, those without insurance will receive a penalty when they file their tax returns - that is, unless they have an exemption.

Read More

Brought to you by TurboTax.com
Read Full Story