Good thing Reggie Bush is a fast runner, because the IRS might be chasing him for back taxes, penalties and interest on the estimated $300,000 worth of luxury gifts he allegedly received while playing football at the University of Southern California. And if they catch him, Bush could end up writing the government agency a check on the high side of $150,000.
“If the entire $300,000 is determined to be taxable," Los Angeles-based CPA Mark Greenberg said, "about 50 percent of that would go to the IRS and Franchise Tax Board. And with penalties and interest, it could go up to 60 percent since it’s going back a few years.”
Greenberg estimates that Bush, now the star running back for the New Orleans Saints, “ultimately will wind up paying about $150,000,” but “it could be up to $200,000” if his financial team can’t get the penalties and interest waived.
Bush and USC have been in hot water since June 10, when the NCAA sanctioned the school with four years of probation and a two-year ban on postseason bowl games. The Trojan football team was also forced to forfeit all its victories during the three seasons Bush played, and it was stripped of 30 football scholarships intended for new players over the next three years.
The penalties imposed upon the coveted USC football program and former student-athlete Bush are the result of an extensive investigation that discovered the Heisman trophy winner received more than $300,000 in illegal benefits from marketing agents during the years he played college football.
Bush proclaimed his innocence in a public statement, saying, "I very much regret the turn that this matter has taken, not only for USC, but for the fans and players. I am disappointed by {the} decision and disagree with the NCAA's findings. If the University decides to appeal, I will continue to cooperate with the NCAA and USC, as I did during the investigation.
