The Duchess of Sussex and her baby Archie could fall foul of the US government’s new drive to enforce provisions of 1986 legislation allowing the country to exclude tax “refugees”.
It targets Americans who have dropped their citizenship to avoid paying US tax on earnings made overseas.
A number of former US citizens have already been barred from re-entering America.
Meghan Markle is expected to retain her dual citizenship – but if she chooses to become solely British then the move could cause issues.
“The US government is greatly in debt. They want every penny they can get”
While baby Archie has automatic dual British-US citizenship.
New York-born Boris Johnson is one of the most notable Brits to give up his US citizenship.
He had to pay a huge US tax bill when he sold his London home.
The US is one of two countries which taxes its citizens, anyone born there until their renounce their nationality, even if they don’t live there – the other is Eritrea.
This has created thousands of “accidental Americans” who have to pay tax despite leaving the US as a child.
According to the latest figures, 1,019 people gave up their US nationality in the first quarter of 2019.
This came after thousands dropped their citizenship in 2016, including Boris, after the rule began to be strictly enforced.
“This is a change in that for decades, tax and immigration lawyers have been saying, yes, there is this ground of inadmissibility but it has never been used,” said Anastasia Tonello, a New York attorney told the Sunday Telegraph.
“That is not the case anymore since it has been used at least three times.”
Meghan is likely to retain dual citizenship though to keep her links with the US.
This was on show yesterday with the Duke and Duchess attending the Major League Baseball game in east London between Boston Red Sox and New York Yankees.
Baby Archie may be forced to give up part of the inheritance from Princess Diana to the US taxman.
Paul Miller, the owner of New York-based accountancy firm Miller & Company, questioned whether the US taxman would grant the child an exemption because of his royal status.
“I highly doubt they would agree to that,” said Mr Miller told the Sunday Telegraph.
“The US government is greatly in debt. They want every penny they can get.”