law

Textron loses U.S. Supreme Court case

Posted 5/25/10

PROVIDENCE – The U.S. Supreme Court on Monday declined to hear Textron Inc.’s appeal of a closely watched tax case, upholding a lower court decision ordering the company to comply with an Internal Revenue Service request for tax-shelter documents.

Last August, the 1st U.S. Circuit Court of Appeals in Boston reversed an earlier decision by a three-judge panel that said Textron did not need to give the IRS the documents, known as tax accrual work papers, as part of the agency’s investigation into Textron’s use of nine tax shelters. The IRS had first requested the documents in 2001.

The case was followed closely by corporate tax officials, lawyers and auditors, who said it would have major implications for the way companies discuss tax matters internally.

“It’s a landmark decision that will cause tax directors of public companies to toss and turn in their sleep and will encourage the IRS to be more aggressive in seeking tax accrual work papers,” Larry Hill, an attorney with Dewey & LeBoeuf, told The Wall Street Journal on Monday.

Solicitor General Elena Kagan, whom President Obama has nominated to become a Supreme Court justice, filed a brief supporting the IRS’ position in the case, according to Accounting Today.

No comments on this story | Add your comment
Please log in or register to add your comment
Calendar
PBN Hosted
Events

Only a few seats remain for PBN's Manufacturing Awards Dinner and Ceremony, Thursday, April 24th, at the Bryant University Bello Center. Don't hesitate. Register today!
  • Business Women
    Accomplished. Confident. Wicked Smart. Nominate women you know who deserve speci ...
  • 40 Under Forty
    It's the 10th Anniversary of 40 Under Forty, and PBN is planning a special event ...
  • Healthiest Employers
    Enrollment now open for the 2014 Healthiest Employers Program. Please take a mom ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News