Michael Saylor, a prominent Bitcoin advocate, and his software company, MicroStrategy, have agreed to a $40 million settlement to resolve tax evasion charges levied by the District of Columbia (DC) attorney general.
This case, described as the largest of its kind in DC history, accused Saylor of illegally 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 that Saylor violated the law. He boasted publicly about his evasion tactics, encouraging others to emulate his actions. Schwalb also criticized tax evaders like Saylor for burdening honest, hardworking taxpayers in Washington.
“Saylor illegally pretended to live in lower-tax jurisdictions to avoid paying taxes on hundreds of millions of dollars of income—all while living in a 7,000-square-foot Georgetown penthouse and docking multiple yachts at Washington Harbour. 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,” Schwalb stated.
Read more: Complete Guide to Filing Cryptocurrency Taxes in 2024
Despite agreeing to the settlement, Michael Saylor maintains his stance against the accusations. In an interview with The New York Times, he still claims he resides in Florida until today.
“I have agreed to settle this matter to avoid the continued burdens of the litigation on friends, family, and myself,” Saylor added.
The lawsuit, filed in August 2022, claimed Saylor failed to pay over $25 million in DC income taxes. He allegedly misrepresented his residence as either Florida or Virginia.
The district amended the complaint to implicate MicroStrategy, accusing the company of aiding in the concealment of Saylor’s true place of residence, thus violating DC’s False Claims Act.
Initially, Saylor denied these allegations, asserting his residency in Florida and filing a motion to dismiss the charges. However, in March 2023, a US judge denied his motion while rejecting claims that Saylor and MicroStrategy conspired to violate the False Claims Act. The court further dismissed a separate claim against Saylor, alleging that he had violated the same provision.
Saylor’s settlement represents ongoing efforts to enforce tax laws and ensure compliance among wealthy individuals and corporations, including in the crypto industry. BeInCrypto previously reported that Roger Ver, known as “Bitcoin Jesus,” faces charges including mail fraud, tax evasion, and filing false tax returns.
Ver allegedly provided false information to his legal and tax advisors, leading to significant underreporting of his assets. By 2017, Ver is accused of having controlled and sold about 70,000 Bitcoin (BTC), amounting to approximately $240 million. This transaction was not reported to the IRS, resulting in a tax loss of at least $48 million.
Read more: The Ultimate US Crypto Tax Guide for 2024
Following these charges, Spanish authorities arrested Ver. Currently, the US is seeking his extradition.
Trusted
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
