MEMPHIS (Fromnews reports) -- International Paper Co. said that it and the Internal Revenue Service agreed to settle a previously disclosed timber monetization restructuring tax matter.

The paper and packaging products manufacturer said it will fully resolve the matter and pay about $260 million in federal income taxes under the agreement, which came on Sept. 2, according to a regulatory filing. International Paper said interest will also be charged upon closing of the audit as a result.

The company also said the amount of interest expense estimated to be recognized through Sept. 30 is about $50 million.

The tax matter was for timber monetization restructuring that took place in 2015, International Paper said in its filing.