Ernst & Young Settles Over Tax Shelters

Ernst & Young LLP agreed Friday to pay $123 million to settle federal allegations that it helped wealthy clients defer or avoid more than $2 billion in tax losses more than a decade ago by using fraudulent tax shelters.

The Big Four accounting firm won't be criminally prosecuted in exchange for agreeing to settle with the Manhattan U.S. Attorney's office.

In addition to the $123 million payment, the firm also agreed to continue restrictions and controls on its tax practice that have been put in place over the past 10 years.

A group at Ernst & Young used the ...

View the original article here