KPMG Says U.S. Starts Probe of Tax Work

KPMG said the U.S. attorney’s office in the Southern District of New York had started an investigation of some tax work the firm formerly offered.

KPMG, along with other accounting firms, has been under scrutiny from Congress and the Internal Revenue Service over the sale of abusive tax shelters to corporate clients.

Lawmakers and regulators say the tax strategies have cost the U.S. government billions of dollars in lost revenue. In response, KPMG has replaced some tax executives and discontinued some services.