UPDATE 2-Altria to pay $971 mln in taxes, interest to IRS

* Co settles with the U.S. tax authorities

* Payment to be made in Q3 (Recasts, adds details)

June 1 (Reuters) - Altria Group Inc (MO.N) said it will pay $971 million in taxes and interests to the Internal Revenue Service (IRS) related to a dispute over the company's tax returns for the years 2000 through 2003.

About $946 million of the payment is related to certain leveraged leasing transactions entered into by Altria's wholly-owned unit, Philip Morris Capital Corp, in the taxable years through 1996 to 2003.

Altria said it intends to file for claims for refund with the IRS for the payment and may start a litigation if the claims are not allowed.

The maker of Marlboro cigarettes and Skoal smokeless tobacco will make the payment in the third quarter, it said in a regulatory filing.

The largest U.S. tobacco company said will not revise its 2010 earnings outlook due to this dispute.

Shares of the company closed at $20.12 in regular session on the New York Stock Exchange. (Reporting by Sweta Singh in Bangalore; Editing by Prem Udayabhanu)