MicroStrategy is known for leading the way in bitcoin hoarding by large companies. But today, MicroStrategy and its famous founder Michael Saylor, are in the spotlight for a less glorious case: a fiscal fraud. They are accused by a prosecutor of conspiring to evade the U.S. IRS.
What the U.S. court is reproaching to Saylor and MicroStrategy
Karl Racine, Attorney General of the District of Columbia, announced that he is suing Michael Saylor and MicroStrategy for tax fraud. As a reminder, MicroStrategy is a software company that has been heavily involved in Bitcoin since 2020. It was the very first company listed in the United States to add bitcoin to its treasury.
Michael Saylor and the company he founded are accused of having devised a “strategy” to evade taxes. In a thread published on twitter, it is learned that Mr. Saylor would have lied about his real home for more than ten years. In the process, MicroStrategy is also accused of helping him evade taxes.
Michael Saylor, the example to show that you don’t lie to the IRS
A complaint filed against MicroStrategy and Michael Saylor alleges that Saylor “knowingly avoided paying income taxes owed to the District of Columbia by fraudulently claiming to be a resident of other low-tax jurisdictions while maintaining his domicile and residence in the District.”
Indeed, for a decade, Michael Saylor allegedly claimed that he lived in Florida, a low-tax state, when in fact the billionaire spent an average of more than 183 days per year in Georgetown during the same period.
According to local law, exceeding such a threshold makes him a resident of the city. Thus, by misleading the U.S. tax authorities about his true residence, Michael Saylor allegedly concealed tens of millions of dollars in income taxes from the IRS.
The case against Michael Saylor, billed as the first ever enforcement of the False Claims Act, is, according to Karl Racine, a warning against residents who misrepresent their residency.
This is the first lawsuit filed under the recently amended False Claims Act, encouraging whistleblowers to report residents who evade our tax laws by misrepresenting their residency…With this lawsuit, we are putting residents and employers on notice that if you are enjoying all the benefits of living in our great city while refusing to pay your fair share of taxes, we will hold you accountable.Karl Racine, Attorney General of the District of Columbia
At this time, Michael Saylor has not responded to the allegations made by the District of Columbia Attorney General. At Coinpri, we are following the case very closely to bring you its evolution in real time. Do you think that this is a technique to dissuade Americans from buying Bitcoin as India may do, or that Saylor is really guilty?
Since 2017 I am fascinated by bitcoin that I no longer hesitate to popularize by organizing meetups/conferences or by sharing its news through this article you are reading.