[tlrobinson]

"The tone of Seth's post suggest that YC has supported Seth in all of his recent actions. That is not true -- YC supports its companies through good times and bad, but we do not support illegality."

FWIW I didn't get that impression from the post. Here's what I assume he was referring to:

"4. Naughtiness

Though the most successful founders are usually good people, they tend to have a piratical gleam in their eye. They're not Goody Two-Shoes type good. Morally, they care about getting the big questions right, but not about observing proprieties. That's why I'd use the word naughty rather than evil. They delight in breaking rules, but not rules that matter. This quality may be redundant though; it may be implied by imagination."

http://www.paulgraham.com/founders.html

I think not paying taxes would obviously fall in the "rules that matter" category.