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Reports on the ruling of a federal judge in the U.S. that accounting firm BDO Seidman LLP does not have to turn over confidential documents in its fight against government accusations that it sold abusive tax shelters. Bases of the court's decision.

Reports that the United States may charge the accounting firm Arthur Andersen & Company with obstruction of justice in the investigation of Enron Corporation. Statement that federal prosecutors have prepared a multicount criminal indictment of the firm; Impact that this could have on the future of Arthur Andersen; Allegations that the company engaged in destruction of documents related to Enron.

Reports on the decision of judge Barefoot Sanders to upheld the efforts of the U.S. Internal Revenue Service to obtain the names of two clients of the KPMG LLP accounting firm who bought a tax shelter that the agency has said is abusive. Effect of the decision on the two investors; Involvement of trading strategies that used short sales of options to create paper looses that were used to offset legitimate, taxable income in the shelter.

Focuses on the increasing use of tax shelters which have no business purpose by United States corporations. Example of a tax shelter set up by Merril Lynch for AlliedSignal which existed only on paper and allowed Merril Lynch to charge 13 cents on every dollar saved from the U.S. government; Information on the tax shelters used by accounting firms; Lack of prosecution by the Internal Revenue Service (IRS).