Washington, D.C. – Billionaire bitcoin investor Michael Saylor, along with his software company, has reached a settlement with the city of Washington, D.C. to pay $40 million to resolve a lawsuit filed by the attorney general. The lawsuit alleged that Saylor had defrauded the city of millions in taxes by falsely claiming residency in Virginia or Florida.
The settlement, which marks the largest income tax recovery in the city’s history, sends a clear message that no resident, regardless of wealth or power, is exempt from the law. Despite maintaining their innocence, Saylor and MicroStrategy, the software firm he founded in 1989, agreed to the terms of the settlement.
Saylor’s move to Florida in 2012 was cited as a key point of contention in the lawsuit, with the District claiming that he had evaded over $25 million in taxes by falsely representing his residency. His attorneys argued against the city’s claims, highlighting the reputational harm Saylor had suffered as a result of the allegations.
The case, initiated by whistleblowers under the False Claims Act, raised questions about the city’s approach to prosecuting tax-related actions. Ultimately, a deal was reached to put an end to the legal battle, with Saylor agreeing to pay the settlement within 14 days and comply with the District’s tax laws.
As part of the agreement, Saylor committed to filing income taxes in the city for any current or future tax year where he maintains a residence and spends at least 183 days annually within Washington, D.C. The settlement also included provisions to prevent any future legal action against Saylor or MicroStrategy related to this matter.
The resolution of the lawsuit serves as a significant reminder of the importance of upholding tax laws and holding individuals accountable for their obligations to the community. With the settlement reached, the focus now shifts to the impact of the case on tax enforcement and compliance moving forward.