If you’re a Giant fan like me, you are probably a little groggy from celebrating the Giant’s win over the Patriots in Super Bowl XLVI last night. However, Antrel Rolle celebratory mood was probably dampened a little bit by a recent IRS ruling that he failed millions in taxes:
U.S. Tax Court documents…show that the feds decked Rolle when they challenged the accuracy of his 2005 and 2006 tax returns. Rolle sued over the bill. But according to the court, last year he agreed to pay $1.9 million plus interest–pretty much everything the IRS was seeking. The tab included $368,000 in late-filing and accuracy-related penalties…
Aside from involvement of a well-known individual, the Rolle litigation had another distinctive element. The feds disallowed tax deductions in respect of a business and a church partly because agents couldn’t verify that the entities even existed at the stated addresses. They were in Arizona–Rolle, who grew up in Florida, once played for the Arizona Cardinals–and California…Rolle reported a taxable income for 2005 of $669,000; the IRS said it should have been $2.15 million. For 2006, he listed $3.2 million; the feds said $6.1 million was more like it. The IRS essentially said that a $1.9 million deduction by Rolle–fresh out of the University of Miami–for expenses pertaining to a “management and consulting” business was preposterous, and that there was insufficient evidence to support deduction of $2.5 million in cash contributions to two churches with similar names in Los Angeles…
Still, the audit papers made for extremely entertaining reading. One of the California addresses that Rolle listed as his home turned out to be an office park in Los Angeles. Rolle’s tax return listed the business with the big expense deductions at an address in the Phoenix suburb of Chandler. But, the IRS agent, wrote, “Correspondence mailed to that address was returned indicating ‘no such number,’ and electronic research turned up the same result.”
Source: Forbes
