U.S. Supreme Court Denies Review to First Circuit's ‘Textron' Decision

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The U.S. Supreme Court May 24 denied review to the First Circuit's controversial Textron Inc. v. United States ruling, in which the circuit court held that tax accrual work papers sought by the Internal Revenue Service in an administrative summons were not entitled to work product protection (Textron Inc. v. United States, U.S., No. 09-750, (cert. denied 5/24/10)).
IRS sought the tax accrual work papers as part of an investigation into Textron's alleged use of an abusive tax shelter. In its 3-2 en banc ruling, the First Circuit said the work product privilege is aimed at protecting work done for use in litigation, not in preparing financial statements.
In its petition for Supreme Court certiorari, Textron claimed that the First Circuit's ruling adopted an unprecedentedly narrow interpretation of the work product privilege in Federal Rule of Civil Procedure 26(b)(3).