On August 28, the U.S. District Court for the District of Rhode Island dismissed a summons enforcement action against Textron, Inc. brought by the Department of Justice on behalf of the Internal Revenue Service. The IRS had sought Textron’s internal tax accrual workpapers. The

district court held that Textron’s workpapers were work product created by its in-house counsel and accountants and that the work product protection was not waived by Textron.[1] The dismissal, if upheld on appeal, would limit the Government’s use of the threat of forcing taxpayers to turn over tax accrual workpapers as a tool in its attack against alleged tax shelters.