The First Circuit Court of Appeals has vacated its decision in U.S. v. Textron, Inc. (CA-1, 1/21/09), which held in part that the work product privilege extended to “tax accrual workpapers.” The appeals court had previously upheld a determination to that effect by a federal district court in U.S. v. Textron, Inc. (DC-RI, 8/29/07), although it set aside the lower court’s determination that the privilege was not waived and remanded the matter for proceedings. In the original case, the court denied the government’s petition to enforce an IRS summons to obtain the taxpayer’s tax accrual workpapers. The holding in the district court was in part based on the premise that the workpapers sought had little bearing on the tax calculation sought in that matter. The appeals court has scheduled a rehearing en banc on the matter (U.S. v. Textron, Inc. (CA-1, 3/25/2009)).
This newsletter is provided by
Somerset for our clients and other interested persons upon request.
Since technical information is presented in generalized fashion, no
final conclusion on these topics should be made without further review.
For additional information on the issues discussed, please contact
Steve Riddle,
Tom
Thieme,
Rex Collins or
Doug
Ayres
of our
Litigation & Valuation Team.
This document is not intended or written to be used, and cannot be used,
for the purpose of avoiding tax penalties that may be imposed on the
taxpayer.
Somerset CPAs,
P.C.
3925 River Crossing Parkway, Third Floor
Indianapolis, Indiana 46240
317.472.2200 • 800.469.7206 • FAX 317.208.1200
www.somersetcpas.com
