Jun 4, 2024 - Economy

🐳 Michael Saylor, MicroStrategy settle tax suit

Michael Saylor, cofounder and chair of MicroStrategy, pauses and puts his hand to his chin.

Michael Saylor, co-founder and chairman of MicroStrategy, at Bitcoin 2022. Photo: Marco Bello/Getty Images

Crypto evangelist Michael Saylor and the enterprise software company he co-founded, MicroStrategy, will pay $40 million to settle tax fraud allegations in D.C.

Why it matters: It's the largest income tax fraud recovery in city history, D.C. Attorney General Brian Schwalb announced yesterday.

Zoom in: D.C. alleged that Saylor dodged city income taxes by claiming he lived in Virginia or Florida while owning a lavish Georgetown penthouse. Schwalb's office claimed Saylor owed over $25 million in income taxes between 2005 and 2020.

  • Whistleblowers alleged Saylor "bragged to friends and acquaintances about evading D.C. taxes," per Schwalb's office.
  • The alleged scheme involved MicroStrategy issuing false statements on Saylor's W-2s.

What they're saying: "This precedent-setting settlement makes clear that no one in the District of Columbia, no matter how wealthy or powerful they may be, is above the law," Schwalb said.

The other side: Saylor maintains he moved to Florida in 2012. He and MicroStrategy deny any wrongdoing.

  • "I continue to dispute the allegation that I was ever a resident of the District of Columbia," he said in a statement to the Washington Post. "I have agreed to settle this matter to avoid the continued burdens of the litigation on friends, family, and myself."

MicroStrategy told Axios in a statement, "This was a personal tax matter involving Mr. Saylor."

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