MicroStrategy's Michael Saylor settles record $40 million DC income tax case
Quick Take MicroStrategy co-founder Michael Saylor has agreed to a $40 million income tax case settlement with the District of Columbia. The settlement represents the largest income tax fraud recovery in D.C. history, according to Attorney General Brian Schwalb.
Michael Saylor, the Executive Chairman and co-founder of corporate bitcoin holder MicroStrategy, has agreed to a $40 million income tax case settlement — the largest in District of Columbia history — the attorney general's office announced on Monday.
“No one in the District of Columbia is above the law, no matter how wealthy or powerful they may be. Saylor not only broke the law, he openly bragged about his tax evasion scheme and encouraged others to follow his example,” D.C. AG Brian Schwalb said . “Tax cheats freeload off the backs of hardworking, law-abiding, taxpaying Washingtonians while depriving the District of critical resources for public services including public safety, infrastructure, and education.”
Despite the settlement, Saylor continues to refute the claims. “Florida remains my home today, and I continue to dispute the allegation that I was ever a resident of the District of Columbia,” Saylor told the New York Times, which first reported the news. “I have agreed to settle this matter to avoid the continued burdens of the litigation on friends, family, and myself.”
DC alleged Saylor evaded over $25 million in taxes
The District of Columbia sued Saylor and MicroStrategy in August 2022, accusing Saylor of evading over $25 million in D.C. taxes by misrepresenting his place of residence as either Florida or Virginia instead of the U.S. capital due to the lower tax rates in those states compared to the District, claiming that the company also helped conceal Saylor’s place of residence for tax purposes.
"I respectfully disagree with the position of the District of Columbia, and look forward to a fair resolution in the courts," Saylor said in a statement at the time. "The case is a personal tax matter involving Mr. Saylor," MicroStrategy said, adding, "The company was not responsible for his day-to-day affairs and did not oversee his individual tax responsibilities."
Shares in MicroStrategy are currently up 4.3% at $1,590 in pre-market trading, according to TradingView .
Michael Saylor and MicroStrategy did not immediately respond to a request for comment from The Block.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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