The Firm also houses the largest tax practice in the United States.

PricewaterhouseCoopers currently has the largest tax practice, with $1.6 billion in revenue, he said.

"My sense is that Andersen's tax practice was well respected," he said.

He said the tax practice no longer was involved with PeopleSoft.

The agreement would also impose restrictions on the scope of its tax practice.

Instead, the investigation is focused on three current and former tax lawyers based in the firm's Chicago office, the heart of its tax practice.

Andersen continued efforts to negotiate a deal for the sale of its prized tax practice yesterday, people close to those talks said.

We have voluntarily made many changes and enhancements to our tax practice.

"We had one guy who worked for a tax organization that would have wiped out our entire tax practice."

The number of injunctions obtained to stop abusive tax practices in those cases rose to 49, from 16.