Tuesday was “Suits” star Meghan Markle’s last tax day as a single woman. Her days as an American citizen may be numbered as well, according to a source with ties to the princess-to-be.
On May 19, Markle will marry Prince Harry and become a royal — though not yet a British citizen. Considering all the tax complications the IRS imposes on citizens living abroad, we’re told that the Los Angeles native has been urged by some associates across the pond to cut ties with Uncle Sam, though not everyone stateside thinks that’s a good idea.
“Friends are encouraging her not to give up her American citizenship,” we’re told. “That doesn’t mean she wouldn’t.” The royal family’s finances have historically been a highly private matter, but should Markle maintain dual citizenship in the U.S. and the UK, she could be subject to an IRS audit, which would likely reveal the value of gifts and allowances from the royals, including the tiara — or tiaras — she’s expected to wear on her wedding day. According to The Wall Street Journal, the IRS could also look at joint bank accounts containing more than $10,000.
We’re also told it’s a possibility that saying goodbye to her U.S. citizenship could cost Markle nearly 30% of her reported $5 million net worth in the form of an “exit tax” or “expatriation tax.”
Prep for Prince Harry and Meghan Markle’s wedding
“There’s a lot of entanglement,” according to our insider. “She is being pulled in many different directions leading up to the wedding.”
We hear that it’s been suggested to Markle that she get a prenup or “marriage contract” in case she finds herself a woman with no country or employment. Harry’s worth is thought to be around $40 million.
“Prince Andrew was divorced from Fergie, Charles and Diana divorced, you had Princess Anne (from Mark Phillips),” we were reminded. “The royal family has not been a good bet since Prince Philip and Queen Elizabeth.”
The royals declined to discuss their newest member’s plans, but assure us Markle will comply with the rule of law.
“Ms. Markle will be compliant with all tax requirements at all times. We have also made clear that it will take a number of years for Ms. Markle to obtain British citizenship,” said a Kensington Palace spokesman.
With Brian Niemietz
On – 17 Apr, 2018 By Brian Niemietz