The U.S. arm of Big Four firm KPMG has agreed to pay $456 million in penalties in three installments over the next 16 months, to admit to a single count of conspiracy to commit tax fraud, and to accept an outside monitor of its operations as part of a deal with the government to avoid potentially fatal criminal charges in connection with its past sales of questionable tax shelters. Under terms of the agreement, KPMG will also implement elevated standards for its tax business.
The deal, which will remain in force through Dec. 31, 2006, ends a year-and-a-half long investigation, and makes the Big Four accounting firm the latest addition to a growing list of entities that have cut deferred prosecution deals with federal prosecutors.
