Actor Nicolas Cage is battling with the Internal Revenue Service, which has accused him of trying to write off $3.3 million in personal expenses by claiming they belonged to his production company.

Cage allegedly has tried to use the company to claim expenses for his Gulfstream jet, as well as limousines, gifts, travel and meals. He has filed suit in Tax Court to dispute the IRS's claim that he owes $814,000 in taxes and penalties.

At the same time, the IRS is charging Cage's company, Saturn Productions, $988,000 in taxes, according to Forbes.com.

The actor reported $430,000 in taxable income in 2003, but the IRS said it was actually $1.9 million. In 2004, he said he earned $17 million, but the IRS claimed the real figure was $18.5 million.

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