A similar probe was launched into fellow Big Four firm KPMG in February and follows falling corporate tax receipts, which contributed just 7.4% to the total US tax bill, the Wall Street Journal reported.
Almost two-thirds of companies in the US paid no tax in 2000.
E&Y reached a settlement last July over similar allegations, paying $15m (£8.4m) to resolve charges that it failed to comply with rules governing tax shelters, including keeping lists of companies who use them.
It did not admit to any wrongdoing.
Richard Cartwright becomes the new head, taking over from incumbent head of office David Lemon
Brian Burke, business development director, has moved within the firm to 'develop Quantuma’s networks with Sussex professional firms'
Stephen Mills joins the Manchester office from IBM, where he spent 12 years as an associate partner in the data, analytics and cognitive consulting group
Rupert Guppy will be responsible for capital allowances in the southern region, and joins the firm from specialist consultancy E3 Consulting