Textron Inc. v. U.S.

Case Updates

NCLC urged the Supreme Court to grant review of a cramped First Circuit decision denying work product protection to tax workpapers prepared by counsel to assist Textron in complying with its regulatory obligations and in making litigation and/or settlement decisions. In this case, Textron had prepared workpapers to assist its independent auditor with its work on the company's financial statements. The IRS filed a claim against Textron arguing the company was utilizing a tax shelter. Limiting work product protection to documents “used” in litigation, the First Circuit ruled that the workpapers could not be protected from disclosure to the government. In its brief, NCLC argued that the decision ignores the purpose of the work product protection, threatens the attorney-client relationship, and punishes businesses for their prudent reliance on counsel.