New Rules on Tax Shelters for Accounting Firms
The Public Company Accounting Oversight Board announced new standards for tax shelters yesterday. The Wall Street Journal reported on this in today's editions.
The rules, which must be approved by the SEC, state that firms will be prohibited from auditing clients to which they sell aggressive tax shelters. Of course, there's an exception to this: if the firms reasonably believe they have at least a 50% chance of prevailing in an audit with the IRS.
This new regulation stems from the continuing KPMG scandal. The US Department of Justice has not yet announced whether they will pursue criminal charges against KPMG.
The rules, which must be approved by the SEC, state that firms will be prohibited from auditing clients to which they sell aggressive tax shelters. Of course, there's an exception to this: if the firms reasonably believe they have at least a 50% chance of prevailing in an audit with the IRS.
This new regulation stems from the continuing KPMG scandal. The US Department of Justice has not yet announced whether they will pursue criminal charges against KPMG.
Related Posts (on one page):
- KPMG: $456 Million Fine, Seven Indicted
- KPMG Indictments Near
- New Rules on Tax Shelters for Accounting Firms
- The Big Three?