Police were called to break up a street argument between Nicolas Cage and his wife early on Saturday morning after a taxi driver reported the row.
Sources tell TMZ.com, Nicolas Cage was very drunk and refused to go home quietly when police officers asked him to.
He reportedly dared the cops to arrest him, which they did.
Nicolas Cage was booked on one count of domestic violence and one count of disturbing the peace and released on bail.
The drama comes just a day after Nicolas Cage's latest tax nightmare came to light - the star has been targeted by the International Revenue Service (IRS) for failing to pay taxes on gifts he issued over the last seven years.
The IRS filed a federal tax lien against the National Treasure star on 17 March in Los Angeles for neglecting to pay the required 35 per cent tax on all large gifts.
Nicolas Cage reportedly gave away roughly $1.8 million (GBP1.1 million) worth of gifts since 2004 and reportedly owes the government just over $600,000 (GBP375,000) in unpaid taxes.
In 2009, it was reported the movie star owed $14 million (GBP8.75 million) to the IRS after receiving demands for tax on his income from 2002 to 2004 and 2007.