The U.S. Internal Revenue Service wants to question the 65-year-old Virgin Islands resident about a possible $1.5 million in unpaid taxes from book royalties and earnings related to international seminars he conducted between 1990 and 2001.
Sydney's The Daily Telegraph newspaper reported that Williams will leave for Los Angeles on Wednesday.
"I will fight this and win," Williams said before sheriffs escorted him from court. "I will be back - I have a lot of friends here in Australia."
Michelle Williams received an Oscar nomination as best supporting actress for her performance in the 2005 film "Brokeback Mountain," playing the wife of Heath Ledger's character. Ledger, who died from an accidental prescription drug overdose in January, is the father of her 3-year-old daughter Matilda Rose, Larry Williams' granddaughter.