The Prince of Wales officially announced the marriage of his son Prince Harry, to Meghan Markle. The wedding will take place in the spring of 2018. While I love a good royal wedding as much as the next Anglophile, this wedding brings unique tax consequences.
Meghan Markle is a US citizen. As such she is subject to the Foreign Account Tax Compliance Act (FATCA). This means that she must report any foreign bank accounts to the IRS every year, if they have more than $10,000 at any point during the year. If Markle and the Prince have any sort of joint bank account, then the IRS gets information about the Prince’s finances. It also means that any financial institution that she uses must comply with IRS demands or face serious financial consequences.
It’s kind of a crazy rule and for normal people it wreaks havoc. Many banks want nothing to do with American customers, which can make it difficult to live overseas. Foreign financial institutions, understandably, aren’t keen on letting a foreign government nose around their records. The easiest thing to do is keep Americans out.
To keep reading, click here: Prince Harry’s Marriage to Meghan Markle Means the IRS Gets a Look at Royal Bank Accounts
Thanks for the article very very related to human resources. Or maybe this is the new “gossip” HR column? And you get paid for this?
I am sure I can use this valuable information in my job.
Awww, Parker, I’ve missed you. I noticed you didn’t comment on my last Swiss Saturday post. Probably because it was on red light districts, which you found useful.
And this is an article about finance, which is something my editors have asked me to focus more on, FYI.
Somebody needs a hug.
I find useful the information about FATCA. It is something to take into account for people who hire US citizens.
Yes, it is–and it’s also good info for US citizens who may be thinking about moving abroad.
Will Markle have to do all that if she no longer has taxable income? I’m sure she won’t be working for pay after marriage.
A lot of British nobility don’t have to ever work a day in their lives to have an income in the millions. The royal family owns extensive real estate, and derives a *lot* of income from it.
The royal family owns extensive real estate in the US, actually.
The Queen received tobacco subsidies on property she owned in the US at least until a few years ago. She got a bunch of flak for it and I believe she no longer applies for it .
If she has no income and no name on any assets, then it doesn’t matter. But if she has any bank account, she’s affected by FATCA. I presume she has a UK bank account now, as she’s been living there and she comes with money.
The real problems start if she has a joint bank account with Harry. Then he’s subject to the same inspections she is.
This rule puts lots of American spouses in serious trouble–especially women. In order to get bank accounts, loans, and buy property, SAH American moms married to foreigners abroad often don’t have their name on anything. If they ever get divorced, depending on the country’s laws, he can argue that it is all *his* and she has no proof otherwise. Even if she has a job and her own bank account, if she’s not on the mortgage loan (because the bank won’t allow an American), he can still say it’s HIS house.
It’s a tremendously invasive and bad law and the main reason I wrote this was to bring attention to it. Plus, I do love a good royal wedding.
[squidlips] She’s renouncing her US citizenship making this whole article irrelevant. Do your [squidlipping] homework next time.