Stacey is just finishing up with disallowing Sam's spa weekend deduction, which brings them close to 25%, one deduction away from whatever. But he trails off when rooting through Sam's files unearths an old baseball card, and he stares at it for a minute. Suddenly Sam realizes he knows Stacey. "Your mom's Josie Connolly. I dated her, back in the day. We used to play catch. You were the little boy with the girl name!" Stacey denies it, babbling about famous male Staceys as a way of claiming that there are any number of them out there, until Sam interrupts with a reminiscence about the time he bought young Stacey a pack of baseball cards. Stacey fakes ignorance, until Sam continues talking about taping the cards to the kid's bicycle. "It sounded like a motorcycle, you called me Evel Knievel!" Stacey cuts him off. So now it's out, along with all of Stacey's old hurt that probably caused him to grow up to be a miserable little IRS auditor in the first place. "You acted like you liked me. And then one day you disappeared, and you never came back." Sam tries to explain that he thought Stacey was a good kid, and tried to call a few times after the end of the relationship, but his mom wouldn't have it. Stacey gets up to leave, and Sam offers to catch up over a beer. "Or no beer," he amends, remembering that Stacey doesn't drink. "We'll just..." But Stacey's already gone. "You dated Stacey's mother?" asks Madeline, who has been visible in the background, eavesdropping pointedly throughout this whole scene. Sam says it was brief. "Looks like it was long enough to make a impression," she obviouses, handing him a fresh beer. Well, now we can see where Michael got his keen powers of observation.
Fi and Michael are doing today's tinkering at the restaurant for some reason. As they get busy with duct tape and a pack of cigarettes, Michael VOs, "It's a challenge to place a bug on someone's body without them noticing. It helps if they always carry something you can reproduce. A phone, a watch, or a pack of cigarettes." They tape a wire inside the bottom of the pack. "Then it's just a matter of planting it on them and hoping they keep ignoring the Surgeon General until you get what you need." I'd wonder if Michael ever tried bugging Madeline this way, but then I realize that the cigarettes would run out long before the battery did.
Tommy comes and meets "Milo" and crew outside the beach club Matheson frequents, complimenting Michael on the white suite jacket he's wearing, the twin of his own. He slaps down his pack of Morleys (X-Files shout-out!) to help Michael with the lapels, and while he pep-talks them, Fi swaps his pack for the real one out of his sight. Tommy grabs the bugged pack and they all head inside. He's awfully busy with that pack of smokes for a guy who's down to one a day. Chalk it up to nervousness, I guess. And the demands of the plot.