New York (March 8, 2004) -- Federal prosecutors have reportedly notified some 30 current and former KPMG partners and employees that they are subjects of the Department of Justice investigation into the Big Four firm's tax shelter, according to a report by The Wall Street Journal.

According to the Journal report, federal agents in some instances delivered letters in person at KPMG offices. KPMG spokesman George Ledwith on Friday wouldn't comment, except to say that the firm's earlier statement regarding the Department of Justice matter "still stands." On Feb. 19, the Big Four firm confirmed that it is under investigation by the U.S. Department of Justice in connection with certain tax strategies it used to offer.

At that time, a statement issued by the firm said it has taken "strong actions" as part of its ongoing consideration of the firm's tax practices and procedures, including leadership changes announced in January and numerous changes in its risk management and review processes. The firm said it intends to "cooperate fully" with the U.S. Attorney's office on the matter.

-- WebCPA staff

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access