Dr. Mehmet Oz may have underpaid Medicare and Social Security taxes, Senate Democratic memo finds

Dr. Mehmet Oz, President Donald Trump's nominee to oversee the Center for Medicare and Medicaid Services, may have "significantly" underpaid Medicare and Social Security taxes in recent years, according to a memo from Democratic staff on the Senate Finance Committee obtained by NBC News.

According to the memo, which outlined a review of Oz's tax returns from 2021, 2022 and 2023, Oz paid no Medicare or Social Security taxes in 2023 and "negligible" amounts in 2022. The review from Democrats on the Senate Finance Committee, which is overseeing Oz's nomination, found that Oz underpaid his "SECA" taxes, a tax on net earnings from self-employment, from income through his media entity Oz Property Holdings LLC.

Overall, Democratic committee staff said that Oz underpaid by $440,667 in Social Security and Medicare taxes.

During a meeting with Oz and his accountant, Democratic committee staff said they asked Oz to amend his tax returns to include income from Oz Property Holdings LLC in his SECA tax calculation, according to the memo. Oz argued that he was not liable for the tax because he was a "limited partner" in Oz Property Holdings LLC.

Democratic committee staff asserted that he was "actively involved" in the company, and should pay more in self-employment taxes. 

"Dr. Oz's position is counter to the position of the Department of Treasury and results in him not paying into Social Security and Medicare, the very healthcare program he hopes to manage," Democratic staff wrote in their five-page memo. 

Christopher Krepioch, a spokesperson for Oz, told NBC News in a statement in response to the memo: "The Office of Government Ethics has conducted an extensive review of Dr. Oz's finances as part of the regular vetting process. OGE has transmitted to the Senate a letter indicating that any potential conflicts have been resolved and he is in compliance with the law." 

NBC News has not independently verified the findings of the memo. 

The White House did not immediately respond to a request for comment. 

Oz, the television personality and surgeon, is set to appear before the Senate Finance Committee for a confirmation hearing on his nomination on Friday The panel's chairman, Senator Mike Crapo, R-ID, did not immediately respond to a request for comment about the memo. 

As CMS administrator, Oz would oversee a sprawling agency responsible for administering Medicare and Medicaid, as well as the Affordable Care Act's insurance exchanges. CMS provides healthcare to more than 160 million people. 

Senate Democrats had previously raised concerns about Oz's ability to lead the agency, mainly surrounding his advocacy to put all Americans into Medicare Advantage, which would effectively replace the traditional Medicare program in which the government directly insures Americans 65 and older in tandem with private insurance plans.

Oz ran an unsuccessful Republican Senate campaign in Pennsylvania in 2022, and does not have any experience at a federal agency.