High Court Turns Down Former Qwest CEO’s Tax Refund Appeal

Joseph Nacchio won’t get a chance to defend before the U.S. Supreme Court his claimed deduction for $44.6 million in insider trading profits he was forced to forfeit.

The Supreme Court on June 12 denied the request by the former CEO of Qwest Communications International Inc. to review a federal appeals court ruling that the forfeiture was equivalent to a fine or similar penalty and not deductible (Nacchio v. United States, U.S., No. 16-810, cert. denied 6/12/17).

Nacchio had argued that because the forfeited funds were used to compensate Qwest shareholders, the money wasn’t a fine or penalty ...