GREENSBORO, N.C. (AP) - A North Carolina couple is accused of getting around paying employment and income taxes for almost a decade to help cover their own spending, federal prosecutors said.
James and Susan Rice were indicted Tuesday by a grand jury in Greensboro on conspiracy and tax evasion charges, the U.S. Attorney’s Office for North Carolina’s Middle District said in a news release.
Prosecutors said James Rice was an orthopedic surgeon in Southern Pines, and Susan Rice worked at the practice handling payroll and employment taxes. According to the news release, between 2007 and 2014, the Rices allegedly withheld employment taxes, but didn’t pay more than $580,000 in social security and other tax withholdings to the IRS. The indictment also alleges the Rices didn’t file individual income tax returns from 2014 through 2016 despite exceeding the filing threshold.
Prosecutors said the couple spent money on boarding their dog, a country club membership and visits to Susan Rice’s spiritual adviser, The News & Observer of Raleigh reported.
The Rices face up to five years in prison and a $250,000 fine for each conspiracy, tax evasion, and employment tax count, and one year in prison for charges related to failing to file individual and corporate tax returns.
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