KPMG Still in Talks With DOJ

KPMG said it remains in discussions with the Justice Department regarding the continuing investigation into certain tax services the firm used to offer, and added that it "takes full responsibility" for any illegal conduct by former partners.

The government has been investigating certain tax services that were offered by KPMG from 1996 to 2002 as part of a larger inquiry into the role of accounting firms, law firms, large banks and taxpayers who participated in the development and implementation of tax shelters.

The accounting firm said in a statement Thursday that it no longer provides the services in question and has established a process to ensure that anyone responsible for wrongdoing is no longer with the company. KPMG also said it has instituted firmwide reforms to maintain ethical standards and has undertaken significant changes in its business practices.

KPMG said it "takes full responsibility for the unlawful conduct by former KPMG partners during that period, and we deeply regret that it occurred."

The firm is still cooperating with the investigation. "KPMG looks forward to a resolution that recognizes the significant reforms the firm has already made in response to this matter while appropriately sanctioning the firm for this wrongdoing," the statement said.

KPMG issued its comments after The Wall Street Journal reported that the firm might be indicted for its role in selling certain tax shelters.

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