Symantec

(SYMC) - Get Report

is paying $36 million, excluding interest, to settle an outstanding claim with the Internal Revenue Service.

That's an improvement over the initial estimate from the IRS, which had set Symantec's tab at $100 million, after an audit of the company's 2003 and 2004 fiscal years. The IRS claimed the company owed more in taxes because of transfer pricing issues between Symantec and a foreign subsidiary.

The security software maker said Friday it expects to finalize the agreement by the end of the month. The settlement will be accounted for on the June quarter balance sheet.

Meanwhile, Symantec is still battling an even heftier claim from the IRS concerning an audit of 2000 and 2001 taxes for Veritas Software. Symantec acquired the firm in July 2005.

The IRS claims that the company owes an additional $900 million in back taxes, plus interest and penalties.

Shares of Symantec lifted 16 cents, or 1%, to $15.51 in recent trading.