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Robert Redford Sues NY State Over $1.6 Million Tax Bill for Sundance Channel Sale

Robert Redford Sues NY State Over $1.6 Million Tax Bill for Sundance Channel Sale

Actor claims that the Empire State is trying to take an unfair bite out of his wallet

“All the President's Men” star Robert Redford is once again taking on the government. And this time, it's financial.

Redford has filed a lawsuit against the New York State Department of Taxation and Finance and the department's commissioner, Thomas H. Mattox, saying he's being unfairly taxed over revenues from the sale of the Sundance Channel.

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The suit, filed in New York Supreme Court, claims that the state hit him with a bill for $845,000 in taxes and $723,000 in interest over the sale — money the actor contends he doesn't owe.

The lawsuit says that Redford, a Utah resident, sold off a portion of the interest in the Sundance Channel in 2005.

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Redford claims that his take from the sale “was included in the income tax return Plaintiff filed with his home state of Utah and was fully taxed by that State.”

However, the suit goes on to say, New York's tax department treated the money as New York source income — a decision that Redford obviously disagrees with.

“[Redford's Sundance T.V. Inc] and Plaintiff determined that the gain was non-New York source income and reported it as such [on] their New York State tax returns,” the lawsuit reads.

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“Plaintiff did not use his ownership interest in [Sundance T.V. Inc.], nor did he use his indirect ownership interest in Limited or Channel, in any trade or business carried on by him in New York,” the suit reads. “Further, Plaintiff did not have any property, payroll or receipts located in or deemed attributable to the conduct of a trade or business in New York.”

Redford is asking for a judgment that he doesn't owe New York the taxes and interest, plus attorneys’ fees and costs.

Pamela Chelin contributed to this report.