The United States is only one of two countries (the other one being Eritrea) to impose the tax on their citizens wherever they live.
One of the implications of Prince Harry marrying Megan Markle (who is a U.S. citizen) would relate to the activities and assets of the royal family being disclosed to the IRS.
Mrs. Markle would have to report specified assets outside the U.S. if the total amount of these assets exceeds the US $ 200,000 on the last day of the year or reached $ 300,000 at any time during the year. (This threshold refers to this because we assume that she and Prince Harry will not file the 1040 joint form.). She would have to do so by filing form 8938 disclosing to the IRS her assets. These assets would include beneficiary interests in foreign trusts for instance.
This is on top of the reporting of her non-US bank accounts on an FBAR if they reach at least US $ 10,000 during the year.
A lot can be said about the disclosure of gifts. If a U.S. citizen receives gifts from foreign persons worth at least $100,000, he/she would have to disclose all such gifts on form 3520. Failure to disclose gifts from foreign persons on form 3520 carries a penalty of $10,000. If the engagement ring she received from Prince Harry was valued at least $100,000, she would have to report all such gifts, including a $500 gift from the Queen.
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