Newton takes on back-taxes claim

Wayne Newton is disputing Internal Revenue Service claims that he and his wife owe $1.8 million in taxes and penalties from 1997 through 2000.

“We believe the IRS owes him money,” said Newton’s lawyer, A. Lavar Taylor, adding that the singer was entitled to $2.2 million in unclaimed deductions over the same period.

The dispute was outlined in tax court filings in Washington. An April 13 notice of deficiency accused Newton and his wife, Katherine, of failing to report the sale of an Arabian horse, wrongfully claiming losses on antique car sales, failing to report income and taking improper deductions.

Newton, 63, has filed a 32-page response in U.S. Tax Court in Washington. The government has until next month to answer.

Newton has had previous disputes with the IRS. In 1992, he filed for Chapter 11 bankruptcy protection to reorganize an estimated $20 million in debts, including a $341,000 IRS lien for back taxes.