James and Susan Rice, Tax Evasion, North Carolina 2023
A federal grand jury in Greensboro, North Carolina, returned an indictment today, charging James and Susan Rice with federal employment tax and individual income tax violations, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Division’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
As alleged in the indictment, from 1992 through the present, James Rice was an orthopedic surgeon who owned and operated an orthopedic practice that the indictment refers to as “Sandhills Orthopaedic.” The indictment further alleges that his wife, Susan Rice, worked at Sandhills Orthopaedic and handled the administrative operations, including payroll and employment tax obligations. Susan Rice also purportedly owned and operated a truffle business.
The Rices have been charged with a variety of tax offenses, including conspiring to not pay any taxes on their business and personal income and to defraud the United States by failing to pay employment taxes owed by Sandhills Orthopaedic. Between 2007 and 2014, the Rices allegedly withheld employment taxes from Sandhills Orthopaedic’s employees, but failed to pay over approximately $580,000 in social security and other tax withholdings to the IRS.
The indictment also alleges that the Rices did not file individual income tax returns for the 2014 through 2016 tax years, despite earning gross income in excess of the filing threshold, and that James Rice did not file corporate tax returns for an entity over which he was president for the 2014 through 2017 tax years.
If convicted, the Rices face a statutory maximum sentence of five years in prison and a $250,000 fine for each conspiracy, tax evasion, and employment tax count. They also face one year in prison for each of the charges relating to failing to file individual and corporate tax returns. They are also subject to additional monetary penalties, supervised release, and restitution.
Defendant: James Rice and Susan Rice
Criminal Charges: Conspiring to not pay any taxes on their business and personal income, defrauding the United States by failing to pay employment taxes owed by Sandhills Orthopaedic, failure to file individual income tax returns, failure to file corporate tax returns
City and State: Greensboro, North Carolina
Date: Not specified
Sentence: If convicted, the Rices face a statutory maximum sentence of five years in prison and a $250,000 fine for each conspiracy, tax evasion, and employment tax count, as well as one year in prison for each of the charges relating to failing to file individual and corporate tax returns
Dollar Amount: Approximately $580,000 in social security and other tax withholdings to the IRS, $250,000 fine
Key Facts
- State: North Carolina
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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