FallingSand completely ignores rotation tag... What more is there to say?
Comments 4
FallingSand isn't a block. It's an entity. The reason they don't rotate is because rotating the block model on the entity wasn't implemented. This isn't technically a "bug", as Mojang never intended to allow FallingSand entities to rotate. While it would be nice to see it in game, it's more of a "requested feature".
Please provide the exact command that you've used.