IRS, accounting firm reach deal on tax shelters

? The PricewaterhouseCoopers LLP accounting firm has agreed to pay the Internal Revenue Service an undisclosed sum and take steps to cooperate in the agency’s attempt to crack down on tax shelters.

Under the agreement announced Thursday, PricewaterhouseCoopers will provide the IRS with certain tax shelter client information and work with the agency to comply with rules requiring registration of shelters and maintenance of investor lists.

The IRS said the “substantial payment” made by the firm was to “resolve issues in connection with advice rendered to clients dating back to 1995.”

PricewaterhouseCoopers would not disclose the amount of the payment but said in a statement that “the hazards of potential litigation and the costs of continuing to dispute these issues with the IRS far exceed the costs of the settlement.”

A company spokesman said the payment was “not significant” and that specific information about the firm’s clients only will be disclosed to the IRS through legal processes.