Liberty Media to Pay $136 Million in Taxes to Settle IRS Dispute

5:49 AM PST 12/20/2011 by Georg Szalai

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Matthew Staver/Bloomberg via Getty Images

The company led by chairman John Malone said it expects to record a deferred federal income tax benefit of approximately $240 million during the current fourth quarter.

NEW YORK - John Malone's Liberty Media said Tuesday that it will pay approximately $136 million for federal income taxes to settle a tax dispute with the IRS.

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Liberty Interactive and Liberty Media have reached an agreement with the IRS to "settle each of the disputed tax positions taken by the Liberty Interactive affiliated group in 2010 for U.S. federal income tax purposes," the company explained in a statement. Its payment will come as part of that agreement.

Liberty Media said as a result, it expects to record a deferred federal income tax benefit of approximately $240 million during the current fourth quarter.

Under the agreement, the company will also settle outstanding share borrowing arrangements. This will "not result in the recognition by Liberty Media of any further taxable gain or loss," the firm said.

Email: Georg.Szalai@thr.com

Twitter: @georgszalai