Star athlete, celebrity wife surprised by tax lien
by AccountingWEB on
Even nice guys end up in tax trouble sometimes. Former Detroit Lions quarterback Rodney Peete and his actress wife, Holly Robinson Peete, did not see it coming…the Internal Revenue Service lien for more than $156,000 that hit them last summer.
In fact, the Peetes said they didn’t know about the lien until they were contacted by the Detroit News for comment. Not that they did not realize there was a problem. The couple had been talking with the IRS for some time, trying to resolve the issue, said Rodney Peete.
After being approached and made aware of the lien, Robinson Peete provided the Detroit News with documents that gave details. The lien was filed on July 22 with the Los Angeles County Recorder of Deeds in the amount of $156,573 in taxes relating to income from 2008.
"This is a tough situation. We were both blindsided by this," Rodney Peete said, who added that the couple have fired their accountant. "We had been in conversations with the IRS for a few months now and were working through paperwork and things like that."
The Peetes stated that in 2008 and 2009 they experienced some cash flow problems. When jobs fell through and their health insurance with the NFL expired, they had to pay significant costs related to their son’s autism and schooling.
“The NFL is the craziest, most violent sport, and its insurance is the worst," Peete said.
According to his calculations, he and his wife owe the IRS approximately $20,000. They expect to be able to pay the debt off soon thanks to some new employment opportunities.
"We're just a family trying to do the best we can," Robinson Peete said. "We ran into an issue and we're dealing with it."
Peete, age 44, joined the Detroit Lions in 1989, and played for the team for five seasons. He played for five other teams before retiring in 2005. He later launched a career in broadcasting with Fox Sports Network as the host of The Best Damn Sports Show, Period. The Peetes also host a show on Oprah Radio called Meet the Peetes.
Robinson Peete starred in 21 Jump Street, Hanging with Mr. Cooper, and played Diana Ross in the movie The Jacksons: An American Dream. She competed on NBC’s Celebrity Apprentice earlier this year, coming in second place. Soon she will begin hosting a new CBC daytime show called The Talk.
You may like these other stories...
Russia races to dodge sanctions by adapting law to FATCARussia is in a race against the clock to adapt its laws to the Foreign Account Tax Compliance Act (FATCA) and save its banks from financial sanctions, Peter Hobson of...
As mentioned in today’s “Bramwell’s Lunch Beat” via an article from the USA Today, a new report from the Treasury Inspector General for Tax Administration (TIGTA) found that the IRS doled out $2.8...
London Stock Exchange switches auditing to EYThe London Stock Exchange will drop PwC as its auditor and replace it with EY after completion of the audit for the year ending March 2014, Harriet Agnew of the Financial Times...
Upcoming CPE Webinars
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.
This material focuses on the principles of accounting for non-profit organizations’ expenses. It will include discussions of functional expense categories, accounting for functional expenses and allocations of joint costs.