United States Federal Circuit

In a tax case arising out of plaintiff's criminal conviction for insider trading, seeking an income tax credit of $17,974,832 for taxes paid on trading profits of $44,632,464.38, which plaintiff was later ordered to forfeit to the United States following his conviction for insider trading with respect to those profits, the Court of Federal Claims' denial of the government's motion for summary judgment and judgment that plaintiff may deduct his criminal forfeiture payment under Internal Revenue Code section 165, but not under section 162, and that plaintiff is not collaterally estopped from pursuing special tax relief under I.R.C. section 1341, is: 1) affirmed in part where plaintiff may not deduct his forfeiture as a loss under section 162; and 2) reversed in part as to the trial court's holding that plaintiff may deduct his forfeiture as a loss under section 165.

Appellate Information

• Published 2016/06/10

Judges

• O'MALLEY

Court

• United States Federal Circuit

Counsel