PwC Makes Cash Settlement With IRS

The Internal Revenue Service has announced an agreement with Big Four firm PricewaterhouseCoopers (PwC) over issues relating to tax shelter registration. PwC has agreed to make what the IRS is calling a "substantial payment" as penalty for marketing corporate tax shelters and then failing to comply with rules requiring the firm to keep a list of such shelters and the clients who participated in them.

Under the terms of the agreement, PwC will continue marketing tax shelters and has reached an agreement whereby the firm will provide the IRS with information about participating clients only when an authorized legal process, such as a summons, is in force.

PwC will not admit to any wrongdoing and has issued a statement indicating that the firm will "continue to pursue tax minimization strategies for our clients while complying fully with tax shelter registration, list maintenance, and promoter requirements."

"This agreement has no impact on our clients' ability to sustain the tax benefits of the tax advice we provided," said the PwC statement. Big Four firm Ernst & Young said that it has cooperated with the IRS regarding a summons the firm received earlier this year. Ernst & Young has been in the spotlight lately for questionable tax advice the firm has provided to some wealthy clients. KPMG and Deloitte & Touche had no comment about the situation.

You may like these other stories...

The law makes it difficult for itemizers to deduct medical expenses. To reap any write-off, you must pay bills that aren't covered by insurance, reimbursed by employers or otherwise satisfied by, for example, a company-...
Drug patents held overseas can pare makers’ tax billsAs the Obama administration tries to stop companies from avoiding taxes by moving their headquarters overseas, the makers of some of the world’s most lucrative...
Starting in October, the IRS will send warning letters to tax return preparers who appear not to be complying with Earned Income Tax Credit (EITC) due diligence requirements.Section 6695(g) of the Internal Revenue Code...

Already a member? log in here.

Upcoming CPE Webinars

Oct 9In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards.
Oct 15This webinar presents the requirements of AU-C 600, Audits of Group Financial Statements (Including the Work of Component Auditors).
Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.