Sterling Trading Opportunities, L.L.C., Sentinel Advisors, L.L.C., Tax Matters Partner - Page 6




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          Messrs. Franco and Missry at two meetings to educate them about             
          the options transactions, including the possibility of IRS                  
          examination of the transaction.  Petitioner and the L.L.C. do not           
          claim, nor do we see, any opinion work product (i.e., “mental               
          impressions, conclusions, opinions, or legal theories of an                 
          attorney or other representative of a party concerning the                  
          litigation”).  If anything, the documents contain fact-based work           
          product.  Fact-based work product may be discovered on a showing            
          of substantial need and the inability to obtain the substantial             
          equivalent without undue hardship.  We shall assume, without                
          deciding, that the documents contain fact-based work product.               
          Because we find that respondent has substantial need for the                
          information contained in the two documents and the inability to             
          obtain the substantial equivalent from other sources, respondent            
          may have discovery of the documents.                                        
               Respondent claims that the documents will show the purpose,            
          structure, parties, and fees for the transactions in question,              
          all of which may assist respondent in proving that the                      
          transactions in question were entered into for purely tax                   
          avoidance purposes.  It is a fair inference from the L.L.C.                 
          memorandum that the documents do contain information concerning             
          the purpose, structure, parties, and fees for the transaction, or           
          concerning at least some of those matters, and our in camera                
          examination confirms that inference.  We shall assume that a tax            
          avoidance purpose is relevant to the cases before us, something             
          that the L.L.C. and petitioner do not contest.  Respondent claims           






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