KPMG US's tax shelter case has seen the firm receive penalties on 96 violations.
The firm must pay $1000 per violation – the maximum fine under Texas state law. The firm also had to pay $3842 in administrative costs.
KPMG America's license suspension has also been stayed in Austin Texas by the State Board of Public Accountancy after the firm made admissions in a deferred prosecution agreement with the US Department of Justice two years ago, relating to tax shelters it designed, implemented and marketed between 1996 and 2002.
Under the agreement, KPMG admitted that former partners and employees prepared fraudulent tax returns for clients; drafted false statements to support tax shelters; issued opinions that were false; concealed tax shelters and information about them from the tax authorities.
The firm also admitted failing to locate and produce crucial documents sought by the tax authority and misrepresented to the firm's role concerning the tax shelters, to the Internal Revenue Service.
The board approved a consent order to suspend the licence but the stay order now means the firm will be placed on probation for the next three years.
Further reading:
Former KPMG accountant pleads guilty
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