A company’s so-called tax accrual work papers, prepared with the assistance of in-house and external counsel, are protected work product, a federal appellate court has ruled in an important case closely watched by an anxious business and legal community.
A company’s tax accrual workpapers are relied upon by independent auditors to determine the accuracy of financial statements. As with Textron, those workpapers often contain legal analyses and evaluations of potential litigation risks associated with particular tax transactions.
