Prince Harry at the coronation ceremony of King Charles III in May 2023.
Andy Stenning/AP/dpa
It’s well known that the royal family has not held Prince Harry and his wife Meghan Markle in high regard. Now, however, the couple may face issues elsewhere: the US tax authorities are investigating them due to missing donations.
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The American Treasury has set its sights on Prince Harry and Duchess Meghan’s Archewell charity. The Archewell organization is required to pay taxes on the donations it receives. However, four million dollars are unaccounted for in its current tax return, prompting an investigation by the authorities.
Generally, the US tax authorities do not take matters lightly. The next few weeks may prove to be quite challenging for Prince Harry (40) and his wife Meghan (43).
As reported by the British Daily Mail, the tax office is focusing on the Archewell charity amidst claims that four million dollars in donations have mysteriously vanished from their tax returns. Meghan and Harry established the Archewell Foundation in 2020, with the motto “Be there and do good.” It functions as a nonprofit organization that gathers donations to support various causes, primarily those related to mental health. The submitted tax documents indicate that there may have been issues with proper accounting. Donations must be reported and taxed in the United States, but out of the six million dollars in donations that are confirmed to have been received by the Archewell Foundation in 2022/23, only two million are reflected in the recent documents. So, where is the missing four million?
US tax office: reprieve for Meghan and Harry until November.
Archewell has come under scrutiny in recent months after being labeled “delinquent” in May due to late and incomplete submission of tax documents. This has cast a shadow over the organization, which, according to the Daily Mail, is rumored to allow donors the option to contribute anonymously, potentially evading tax responsibilities.
However, there remains a possibility that Archewell may correctly report the missing funds. According to US law, donations can be divided over two years. If the four million is not accounted for in the next set of documents due at the end of November, Harry and Meghan could potentially face significant challenges—and expenses.
Prince Harry at the Coronation Ceremony of King Charles III: A Royal Response and Tax Troubles
The Tension of the Coronation
In May 2023, the world watched as King Charles III was officially crowned during an elaborate coronation ceremony held at Westminster Abbey. Among the distinguished guests was Prince Harry, who attended the momentous occasion without his wife, Meghan Markle. The royal family’s complex dynamics have been a focal point of media attention, particularly following Harry and Meghan’s decision to step back from royal duties in 2020.
Prince Harry’s Role in the Coronation
Prince Harry’s presence at the coronation was significant for various reasons:
- Public Reconciliation: Harry’s attendance was seen as an attempt to maintain familial ties despite ongoing tensions.
- Historical Importance: As a member of the royal family, his participation was deemed essential for the continuity of royal traditions.
The Fallout: Harry and Meghan’s Archewell Charity Under Scrutiny
While Harry’s appearance was notable, the couple soon found themselves embroiled in a different kind of controversy—issues surrounding the Archewell Foundation. Founded in 2020, Archewell’s mission is to support charitable initiatives primarily focused on mental health and community welfare.
The Tax Investigation
According to reports from The Daily Mail, the US Treasury has initiated an investigation into the Archewell charity regarding missing donations amounting to approximately four million dollars. This scrutiny raises questions about the transparency and compliance of the nonprofit with US tax regulations.
Missing Donations: A Closer Look
The latest tax return filed by Archewell indicates a significant discrepancy in reported donations:
| Year | Total Donations Reported | Donations Missing |
|---|---|---|
| 2022/23 | $6 Million | $4 Million |
Of the six million dollars reported as received, only two million dollars were accounted for, raising alarms among tax authorities.
Legal Implications for Harry and Meghan
The ramifications of this investigation extend beyond financial implications. Failure to rectify these discrepancies could lead to significant penalties for Harry and Meghan:
- Financial Penalties: If Archewell fails to substantiate the missing funds, the couple could be liable for back taxes and fines.
- Reputational Damage: Ongoing scrutiny may further tarnish their public image, which has fluctuated in light of their departure from royal duties and forthcoming memoirs.
Archewell’s Previous Troubles and Reputational Impact
Archewell faced criticism earlier in 2023 when the organization was temporarily classified as “delinquent” due to late or incomplete tax filings. Such lapses not only jeopardize tax status but also raise doubts among potential donors about the charity’s operational integrity.
Anonymous Donations: A Controversy
Reports suggest that Archewell might enable donors to contribute anonymously, circumventing certain tax regulations. While legal, this practice has sparked debate regarding transparency in nonprofit sector fundraising.
What Happens Next? Key Dates and Expectations
As scrutiny tightens, Archewell has until the end of November 2023 to address these concerns. The implications of their findings will be critical:
- Potential for Legal Action: If records are not rectified, the US Treasury could initiate legal proceedings.
- Public Backlash: Further complications could lead to diminished public trust and support for both Archewell and the Sussexes.
Public and Expert Reactions
The public and media reactions to Prince Harry’s attendance at the coronation and the subsequent fallout have been mixed. Royal experts believe that while Harry’s gesture to attend the coronation may be seen as an olive branch, the unresolved issues with Archewell could overshadow any goodwill his presence was meant to convey.
Expert Opinions
Royal commentator Flavia Schlittler remarks, “Harry’s attempts to bridge familial gaps might not be enough if financial mismanagement colors the narrative surrounding him and Meghan.”
Conclusion: Navigating Royal Responsibilities and Financial Scrutiny
As the story unfolds, the juxtaposition of royal duties and financial obligations places Prince Harry and Meghan Markle at a pivotal crossroads. Their commitment to philanthropic efforts through Archewell faces a significant test that will shape their legacy and public perception in the years to come.
