Strategic Moves

Gimme shelter: ... KPMG is taking "full responsibility for the unlawful conduct" by some of its partners regarding their role in setting up tax shelters from 1996-2002 that later became the subject of investigation by the U.S. Justice Department. Consequently, the firm is taking a number of steps:

it no longer provides the services in question; it's eliminating its association with those responsible for the wrongdoing; and it's instituted firmwide reforms "to ensure the highest ethical standards." "We remain in discussions with the Department of Justice and continue to cooperate fully in its investigation," a statement released by the firm says. "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. We take this matter very seriously and seek to resolve it fairly and expeditiously."

North meets South ... Two IPA 100 firms formed a strategic alliance. New York-based Marks Paneth & Shron and Decosimo of Chattanooga, Tenn., created MPS Decosimo Global to provide sophisticated international tax planning to the growing global marketplace. Target clients are growing mid-size businesses that need international tax assistance but seek an alternative to the Big Four. Services offered include international tax compliance, audit and return preparation, tax planning and restructuring, international management advisory services, transfer pricing, and asset protection trusts. The alliance is headed by Laurence Feibel of MP&S and William Elliott of Decosimo. Both firms are affiliated with Jeffreys Henry International.

More mergers in the IPA 100 ... WithumSmith+Brown of Princeton, N.J., merged with Gershon, Pierce, Lissak & Co. of Morristown, N.J. The deal will expand WS+B's services to a larger base in northern New Jersey and gives the firm an office in Morristown. WS+B recently merged with two other New Jersey accounting firms: Mendlowitz Weitsen of East Brunswick and Weeks Holderbaum DeGraw & Nadkarni of Bridgewater. WS+ B has FY05 net revenue of $39 million; 40 partners, 210 total staff and seven offices ... Weaver & Tidwell of Fort Worth, Texas, merged with Brehm & Co. of Dallas. B&Co. specializes in construction and has 11 employees. Marie Brehm joins W&T as a partner. W&T wanted B&Co.'s construction expertise and talent pool; B&Co. wanted to offer clients the deeper resources the larger firm could provide, such as its employee benefits and financial services expertise. W&T's existing construction practice grew 19% in the past year. B&Co. employees will transfer to W&T's Dallas office. W&T has FY04 net revenue of $19.3 million; 22 partners, 136 total staff and two offices.