Michael Saylor, founder and Executive Chairman of MicroStrategy, has agreed to a $40 million settlement with the District of Columbia over an income tax dispute. This marks D.C.’s largest income tax fraud recovery ever, according to officials.
• The District of Columbia sued Saylor in August 2022.
• Allegations: Saylor did not pay income taxes while living in D.C. for over 10 years.
• The district claims Saylor avoided more than $25 million in taxes by saying he lived elsewhere.
• The lawsuit also alleged that MicroStrategy helped Saylor avoid these taxes.
Saylor, however, disputes these claims. He maintains that Florida has always been his home and he has never been a resident of D.C. He decided to settle to avoid the ongoing legal struggle and its impact on his personal life.
Saylor’s Statement:
“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. “I have agreed to settle this matter to avoid the continued burdens of the litigation on friends, family, and myself.”
The announcement had a positive effect on MicroStrategy’s stock, which saw a 3% rise in pre-market trading.
This settlement concludes a significant legal battle between Saylor and the District of Columbia, drawing attention to issues of residency and tax obligations.
