London mayor bends to IRS, settles U.S. tax dispute

boris johnson
London Mayor Boris Johnson had refused to pay tax demanded by U.S. authorities.

After steadfastly refusing to pay an "absolutely outrageous" tax bill demanded by American authorities, the mayor of London is back in the good graces of the Internal Revenue Service.

Boris Johnson has resolved the issue of the unpaid tax bill, a spokeswoman for the mayor said Thursday.

"I can tell you that the matter has been dealt with," she said. "We've nothing further to add."

Johnson was born in New York and still has U.S. citizenship, despite leaving the country when he was five years old.

Unlike most countries, the U.S. taxes citizens, including expats like Johnson, on all income, regardless of where they live or earn.

Related: Why expats are ditching their U.S. passports

The mayor's spokeswoman declined to specify whether the settlement included a monetary payment, but the Financial Times reported that Johnson was eager to pay the bill ahead of a visit to the United States scheduled for next month.

Last year, Johnson told NPR that officials were "coming after him" for capital gains tax on the sale of his first London home.

Asked whether he would pay the bill, he said: "No is the answer. I think it's absolutely outrageous. Why should I? ... I haven't lived in the United States for, you know, well, since I was five years old."

Related: This job has the world's worst tax return

Inside U.K.'s air traffic control center
Inside U.K.'s air traffic control center

Johnson, a member of the Conservative Party, has been floated as possible successor to current Prime Minister David Cameron.

This is not the only tax dispute between Johnson and the U.S.

The mayor, known for his unruly blond hair and the occasional gaffe, has criticized the U.S. embassy for not paying the congestion charge -- a levy on vehicles using central London streets during peak hours.

The U.S. embassy, along with other embassies in London, refuses to pay. They say the fee is a form of tax -- and that as diplomats, they are exempt.

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