U.S. authorities asked Australian police to apprehend the stock market trader when he arrived in Sydney Saturday for a lecture tour of Australia and New Zealand, the Sydney Morning Herald reported.
The U.S. Internal Revenue Service alleges Williams, 64, who lives in the Virgin Islands, owes the U.S. government about $1.5 million in taxes for earnings between 1990 and 2001.
His attorney told the Central Local Court in Sydney Tuesday Williams had been negotiating with the IRS for about a year and paid off about $400,000 of tax debt.
Williams turned over his passport and was freed on $1 million bond. He was also ordered to check in with Sydney police three times day until his next court hearing set for Monday.
His daughter, Michelle, received a best supporting actress nod for her role in "Brokeback Mountain."