INCOME TAXES (Note)

6 Months Ended

Jun. 30, 2014

INCOME TAXES

International Paper made income tax payments, net of refunds, as follows:



	Six Months Ended June 30,
In millions	2014		2013
Income tax payments, net	$	143	$	164

The following table presents a rollforward of unrecognized tax benefits and related accrued estimated interest and penalties for the six months ended June 30, 2014:



In millions	Unrecognized Tax Benefits			Accrued Estimated Interest and Tax Penalties
Balance at December 31, 2013	$	(161	)	$	(54	)
Activity for three months ended March 31, 2014	5			9
Activity for the three months ended June 30, 2014	—			2
Balance at June 30, 2014	$	(156	)	$	(43	)

The Company currently estimates that, as a result of ongoing discussions, pending tax settlements and expirations of statutes of limitations, the amount of unrecognized tax benefits could be reduced by approximately $5 million during the next 12 months.

Included in the Company’s income tax provisions for the six months ended June 30, 2014 and 2013, are $317 million and $126 million of income tax benefits, respectively, related to special items. The components of the net provision related to special items were as follows:



	Six Months Ended June 30,
In millions	2014			2013
Special items	$	(335	)	$	(37	)
Tax-related adjustments:
State legislative changes	10			—
IRS audit settlement	—			(91		)
Internal restructurings	9			—
Other	(1		)	2
Income tax provision (benefit) related to special items	$	(317	)	$	(126	)

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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