KPMG was on the losing side of a $17.6 million verdict in a case involving an investor who claimed the firm gave him bad tax advice.
Philanthropist Gary Bielfeldt said KPMG should have advised him to change his status to "dealer" instead of "trader" when he reported his profits on trades in government securities two decades ago, according to the Peoria Journal Star. As a dealer, he would have been able to carry back his losses. In 1991, he asked the IRS to refund him nearly $90 million in taxes that he would not have needed to pay if he was in fact engaged in dealer activities, but the IRS declined. The IRS prevailed in court and on appeal.
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