Microstrategy Settles Tax Evasion Suit for $40M � CryptoMode

Cryptomode_202404 Jun, 2024Business

The New York Times reported on June 3 that the attorney general for the District of Columbia reached this settlement with Saylor and his software company. Local officials assessed the agreement as the district?s largest income tax fraud recovery. This lawsuit was the first filed under the district?s amended False Claims Act, encouraging whistleblowers to report tax evasion by residents allegedly hiding their residency. In August 2022, the District of Columbia sued Saylor and MicroStrategy, alleging that Saylor had not paid income taxes in the district for at least ten years while residing there. According to the claims, MicroStrategy helped Saylor evade more than $25 million in DC income tax. Initially, experts suggested that Saylor could face penalties of up to $75 million.