Meghan Markle & Prince Harry's Baby-to-Be Is Already Proving to Be an Expensive Little Royal

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It's an accountant's royal nightmare! Well, sort of. When Meghan Markle gives birth, which could be any day now (!), the new baby is going to owe the United States money. The reason? When a child is born of an American parent, regardless of where in the world they are, they're a US citizen and are responsible for paying federal income tax. So yep, Baby Sussex is a US taxpayer

And Meghan and Prince Harry were thinking late nights were going to be their only issue. 

  • As with many things tax-related, though, there's a loophole around this. 

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    One, the child could renounce his or her citizenship once the child turns 18, or two, the Duchess of Sussex can renounce hers -- the latter highly unlikely. 

    "When a child is born a U.S. citizen, they are a U.S. taxpayer irrespective of residency," international tax lawyer Stuart E. Horwich told CBS recently. "The kid will have to list all foreign bank and financial accounts in which he or she has an interest."

    Kind of a drag, but let's be honest: It's a small price to pay (literally) in the grand scheme of all things royal. 

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  • Although the situation has the potential to be both costly and confusing, Harry and Meghan will of course be hiring someone who's at the top of his or her game to deal with this. 

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    "This baby will have access to trusts and the use of a nice home in Windsor and other financial assets that the royal family has, so there is a lot of reporting that will need to be done," tax expert David Treitel revealed. "The royal accountants will have a tough time learning U.S. tax rules and figuring out what they have to report."

    Also, this creates the opportunity for the RS to scrutinize the royal family's money. That said, The Firm will undoubtedly be extra (extra) careful in such a situation.

    "I doubt anybody would be careless enough to create a situation where anything that was remotely sensitive would be releasable to the IRS," Horwich said, adding that failing to do so "would be criminally stupid."

  • Crazily enough, this is the first time the royal family will have to deal with this, as an American has never married one of its members. 

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    As of now, it's unclear when tax returns will be filed on behalf of Baby Sussex, but it may begin shortly after he or she is born!

    Oh, Harry and Meghan. Always breaking royal standards!

  • It's doubtful that Queen Elizabeth and other members of the royal family didn't think of this during the process of Harry and Meghan's courtship. 

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    And hey, they're the royal family. We have a sneaking suspicion that everything will work out just fine for them.