Michael Saylor Settles with DC Over Tax Fraud Allegations

Michael Saylor, founder and Executive Chairman of MicroStrategy (MSTR), has agreed to pay $40 million to settle a tax fraud case with the District of Columbia. This settlement marks the largest income tax fraud recovery in the district’s history, according to the attorney general’s office.

Allegations and Lawsuit

The District of Columbia filed a lawsuit against Saylor and MicroStrategy in August 2022. The lawsuit claimed that Michael Saylor failed to pay income taxes in the district for over a decade while residing there. The attorney general’s office alleged that Saylor avoided more than $25 million in taxes by falsely claiming residency in another state. Additionally, it accused MicroStrategy of conspiring to help Saylor evade these taxes.

Saylor continues to maintain his stance on the matter. “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. He explained his decision to settle, stating, “I have agreed to settle this matter to avoid the continued burdens of the litigation on friends, family, and myself.”

This settlement highlights the legal challenges that can arise for corporate executives and their companies regarding tax obligations. While Saylor disputes the allegations, the settlement brings an end to a significant legal battle, allowing him and MicroStrategy to focus on their business operations without the distraction of ongoing litigation.