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."
