Michael Saylor Settles DC Tax Evasion Case 🤑🚫

Michael Saylor Agrees to $40 Million Settlement for Tax Evasion Charges

Michael Saylor, a well-known Bitcoin advocate, and his software company, MicroStrategy, have reached a $40 million settlement to address tax evasion allegations from the District of Columbia (DC) attorney general. This case, considered the most significant of its kind in DC, accused Saylor of unlawfully avoiding taxes on hundreds of millions of dollars of income.

DC Attorney General Addresses Allegations Against Saylor’s Tax Practices

DC Attorney General Brian Schwalb highlighted Saylor’s violation of the law.
Schwalb criticized tax evaders like Saylor for burdening honest taxpayers in Washington.

In a public statement, Schwalb emphasized that Saylor pretended to reside in low-tax areas to evade taxes on a vast income. He stated that tax evaders like Saylor take advantage of hardworking taxpayers, depriving the District of essential resources for public services.

Michael Saylor’s Stance on the Allegations

Despite the settlement, Saylor maintains his claim of residing in Florida.
Saylor agreed to the settlement to prevent further burdens from litigation on his loved ones.

The lawsuit, filed in August 2022, alleged that Saylor failed to pay over $25 million in DC income taxes by misrepresenting his residence as Florida or Virginia. The district amended the complaint to implicate MicroStrategy, accusing them of aiding in concealing Saylor’s true residency, violating DC’s False Claims Act.

Initially denying the allegations and filing a motion to dismiss the charges, Saylor’s motion was denied by a US judge in March 2023. The court rejected claims of conspiracy with MicroStrategy to violate the False Claims Act and dismissed a separate claim against Saylor for similar violations.

Ongoing Efforts in Tax Enforcement

Saylor’s settlement is part of ongoing efforts to enforce tax laws and ensure compliance.
Similar cases in the crypto industry include Roger Ver facing charges of mail fraud, tax evasion, and false tax returns.

Roger Ver allegedly provided misinformation to legal and tax advisors, leading to underreporting of assets. Controlling and selling approximately 70,000 Bitcoin (BTC) without IRS reporting resulted in a tax loss of at least $48 million. Spanish authorities arrested Ver, and the US is seeking his extradition.