First Circuit Denies Work Product Protection For Tax Accrual Workpapers

Sunday, October 4, 2009 - 01:00

1 I.R.M. (7/12/2004).

2 Internal Revenue Code of 1986, as amended, § 7602.

3U.S. v. Arthur Young & Co., 465 U.S. 805 (1984), rev'g 677 F2d 211 (2nd Cir. 1982), rev'g 496 F. Supp. 1152 (D.C. N.Y. 1980).

4 No. 07-2631 (1st Cir. Aug. 13, 2009) (en banc).

5 Announcement 2002-63, 2002-2 C.B. 72.

6United States v. Textron Inc . , 507 F. Supp. 2d 138 (D. R.I. 2007).

7553 United States v. Textron Inc., F.3d 87 (1st Cir. 2009).

8United States v. Textron Inc . , No. 07-2631 (1st Cir. Aug. 13, 2009)(en banc) (emphasis in original).

9329 U.S. 495 (1947).

10 (Emphasis in original).

11United States v. El Paso Co., 682 F.2d 530 (5th Cir. 1982).

12See FIN 48 and Tax Accrual Workpaper (TAW) Policy Update LMSB Commissioner Memorandum, LMSB-04-0507-044 (May 10, 2007).

Brian A. Silikovitz , Member of the Firm, practices in the Tax Group where he specializes in business tax counseling and structuring. He counsels clients at all stages in the life of a business and is especially active in the areas of venture capital and private equity investment; mergers and acquisitions; hedge fund and private equity fund formation; issuance of debt instruments and equity derivatives; executive compensation, and choice of business entity. Richard J. Horne is Counsel in the Tax Group. Based in the Firm's New York office, he focuses on the taxation of business transactions. Isaac Hirsch is an Associate in the Firm's Tax Group.

Please email the authors at, or ihirsch@lowenstein.comwith questions about this article.