A divided 1st U.S. Circuit Court of Appeals has overturned its own three-judge-panel ruling and that of a District Court to hold that Textron's tax accrual work papers were not protected from IRS summons by the work-product doctrine. The papers were prepared primarily to support calculations of reserves for contingent tax liabilities. It was not enough that, as part of those calculations, the work papers analyzed the prospects for litigation that could arise from tax positions, Judge Michael Boudin wrote for the majority.
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