The marital drama continues for Michael Douglas as it's revealed his first wife Diandra owes $1.1M in taxes

By Daily Mail Reporter

Published: 10:20 EDT, 6 September 2013 | Updated: 10:38 EDT, 6 September 2013

Oversight? Michael Douglas' ex wife Diandra Luker owes 1.1M to the tax man

He's currently separated from his wife Catherine Zeta-Jones, but Michael Douglas is now facing a headache relating to his first marital union.

The 68-year-old's ex-wife Diandra Douglas apparently owes the IRS $1,155,394.16 stemming from taxes unpaid for the years 2007 to 2009.

But Diandra should at least be able to pay the bill without the assistance of her former partner as in 2000, she was reportedly awarded $45 million in her divorce from Douglas.

She also made a claim for half of the movie star's earnings from Wall Street: Money Never Sleeps but the case was dismissed.

According to Page Six, the tax lien filed against Diandra is dated August16, and says the bill stems from her individual income tax returns.

It's listed that she owes $648,830.17 for 2007, $376,023.95 for 2008 and $130,540.04 for 2009.

Diandra owns an Upper East Side home where she lives with three of her children.

Page Six report that she just sold a home in Montecito, California which she got in her divorce from Douglas for around $24 million.

The missing payments are thought to be related to a tax deduction Diandra made on a property.

According to a source: 'Diandra bought a home on East 71st Street years ago, remodeled and sold the house, but she donated the air rights to a conservancy to protect the skyline. The air rights were appraised at the time,' said a source.

'Very fond': Michael says he has no hard feelings towards his first wife

'Six years ago, on the advice of Mrs. Douglas’ longtime accountants, they took a tax deduction they had every reason to believe was indisputable. The government has decided this needs to be looked at, and is now in dispute. Her accountants expect this will be resolved in her favour.'

Douglas and Diandra divorced in 2000 after 23 years of marriage.

And he recently admitted the pair should have split much sooner.

'I know I’m going to get into trouble here. I have nothing against her and in fact I’m very fond of my first wife. But we should have ended that marriage eight or 10 years earlier,' he told The Mirror.

Hung on too long: Douglas admitted in a new interview that he and ex-wife Diandra should have divorced far sooner than what they did, in 2000, pictured together in 1994

'He's a great young man': The 68-year-old said he is supporting his son Cameron, who is in prison for drug-related offenses, pictured together in 2009

'It took me too long to realise that if you go to a marriage counsellor to resolve problems, it’s in his interest to keep the marriage going.

'Because if I end the marriage he’s got no business. I think Diandra would probably say the same thing. That’s the only clear regret that I have,' said the Wall Street star.

The Oscar winner made the comments during a candid interview in which he also touched on his hopes for his and Diandra's son Cameron, 34, who is currently serving a nine-and-a-half year prison sentence for drug-related offences.

'He's a great young man, so I hope he gets it all together. He's in prison and he's going to be there a while,' said Michael.

'He knows what he's done and takes full responsibility for it and I can see now it may be the best place for somebody to sort out the next chapter in his life. I'm there for him and supporting him,' he added.

Michael, who also has children Dylan, 12, and Carys, 10, with Zeta-Jones, said he is relishing being a father a second time around.

'I love kids and I love having had this second chance to have a family. There's something about the innocence and unequivocal love that children have. You're just their dad and there's a complete love without them having any judgment, so I can enjoy that a lot,' he said.

Michael - who was diagnosed with stage-four throat cancer in 2010 - said he likes being active with his children.

'My daughter is a horseback rider so I try to watch her ride, we take holidays together. I got Dylan his diving permit so he and I dive together. He likes surfing, so we try go and find places on holiday where there is good surf. They're just at a great age. It's a lovely time but I know how fast it goes. Soon, they're not going to want to see dad, they'll want to see their friends.' 

Fatherhood fun: Michael said he is enjoying being a dad to young children Carys and Dylan, pictured with estranged wife Catherine Zeta-Jones in London in 2011