Actor John Travolta has agreed to pay $607,400 in back taxes to settle an Internal Revenue Service dispute dating back more than five years, according to court records.
Under a two-page settlement filed recently in U.S. Tax Court in Alexandria, Va., Travolta will pay more than half the $1.1 million in back taxes and penalties sought by the IRS for the years 1993 through 1995.
Travolta agreed to pay only back taxes, not any penalties, records show. The amounts are $150,547 for 1993, $248,096 for 1994 and $208,757 for 1995.
Neither IRS officials nor Travolta's tax lawyer, James M.A. Murphy, would comment on the settlement.
The dispute stemmed from $2.27 million in unspecified losses Travolta claimed from 1993 to 1995 for a company called ATLO Inc., according to court records. ATLO is a so-called S corporation, a common device wealthy people use to gain tax breaks by having earnings and losses flow through the companies.