Michael Saylor and MicroStrategy Settle D.C. Tax Fraud Case for $40 Million

Settlement marks the largest income tax recovery in Washington, D.C. history, resolving allegations of evading $25 million in taxes.

Michael Saylor and MicroStrategy deny wrongdoing but agree to a $40 million settlement, including interest and penalties.
The lawsuit claimed Saylor avoided paying income taxes by falsely claiming residency in Virginia and Florida from 2005 to 2020.
D.C. Attorney General Brian Schwalb emphasized that the settlement should deter others from attempting similar tax evasion schemes.
Saylor, a billionaire bitcoin investor, will pay the full settlement amount as part of his agreement with MicroStrategy.
The settlement includes a provision barring future actions against Saylor or MicroStrategy on this matter.