Search
 

Starwood To Pay $360M to IRS in Ongoing Tax Case

WHITE PLAINS-Starwood Hotels board of directors approves a $360-million cash payment to the Internal Revenue Service in connection with an ongoing tax dispute concerning its 1998 disposition of ITT World Directories, a deal valued at $1.2 billion.

By John Jordan | Updated on October 18, 2005

(To read more on the debt and equity markets, click here.)

WHITE PLAINS-While the company says it will continue to defend its position in the case, Starwood Hotels & Resorts Inc. has agreed to make a $360-million cash payment to the Internal Revenue Service. The payment is in connection with an ongoing tax liability dispute centered around its $1.2-billion sale of Yellow Pages publisher ITT World Directories in 1998.

Starwood’s board of directors approved the cash payment to the IRS so that it could eliminate any further interest accrual associated with the case. Alisa Rosenberg, vice president of investor relations for Starwood, explains that Starwood contends that its sale of ITT was a tax-deferred transaction. The IRS views the matter differently and, according to a recent SEC filing by Starwood, the IRS estimates Starwood has a tax liability of $499 million in connection with the sale, plus accrued interest dating back to the transaction which closed more than seven years ago.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2025 ALM Global, LLC. All Rights Reserved.