BUSINESS
05/02/2013 01:17 pm ET | Updated May 02, 2013

Sumner Redstone Fights IRS Over 41-Year-Old Tax Bill (VIDEO)

Tax season apparently isn't over for media mogul Sumner Redstone.

The billionaire is in the midst of a battle with the Internal Revenue Service over a tax bill that is more than 41 years old, according to Bloomberg. The IRS is seeking $1.1 million, claiming Redstone never paid taxes on a gift he made to his children in 1972.

Redstone's lawyers, however, claim the money was an "ordinary business transaction" and hence not taxable, according to the Los Angeles Times.

Richard Behrendt, a former IRS estate and gift tax auditor, told Bloomberg it was "unprecedented" for the IRS to go after a taxpayer for something that happened more than four decades ago. “It sends a really troublesome message to the public.”

The IRS is still struggling to adjust to a sequester-imposed $600 million budget cut, Reuters reports. Such cuts, combined with rising income and payroll taxes, are part of the reason the March's $107 billion federal deficit came in below expectations.

For more on this story, click over to Bloomberg News.

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