Need to file back taxes from 2012 to now - is this simple enough to do myself?

Hi all,

My husband and I received much good advice from this forum years ago when I was moving to the UK. I'm a US citizen, and now we're planning on repatriating together.

I understand I'm required to provide 3 years worth of tax returns. I was (some might say blissfully) unaware that I was required to be filing these for the USA for the past few years. Fair enough - I filed for 2010, the last year I worked in America. In 2011, I did not earn over $9k, and therefore no requirement to file. So, as mentioned, 2012, 2013, and now 2014 need to be filed.

We've gotten a quote from someone here in the UK who can do it for $900. To me, that sounds pretty expensive.

From what I understand I can print out and file back taxes with the IRS in London myself. I've never earned anywhere near the $90k point where US taxes must also be paid, I've spent most of this time in the UK as a contract employee (so, "self employed" as per UK tax, correct?) and my final year here has been as a salaried, full-time employee.

What I'm asking is - do I have a simple, straightforward tax situation here that will just be a long, boring process for me to fill out forms? Or is there really a need for an attorney with my case?

In case anyone is curious, I was planning on following along with this page:
http://britishexpats.com/wiki/Taxes_filing_with_the_US_IRS_in_London

to complete my taxes for the last 3 years. I'll also be using my father as a joint sponsor for my husband, as I have no US-based income and my UK income currently is below 125% of the poverty line.

I want to get right with the IRS anyway - I feel quite stupid for having not noticed or paid attention.

Quick edit: I also have a question about the FBAR. My husband and I have in the last few months actually had over $10k in the bank - always for relatively short time periods. However, our savings account (where that money is) is actually only in my husband's name. Our joint account (checking account) has never had that sort of money. I don't really get the FBAR anyway - it seems like quite a low threshold for something I assume is meant to check up on Swiss bank account holders and the like, right?

Later edit: I also wanted to mention that I don't have any assets - in the UK or the USA. I never owned property in America & here we've only rented.

Thanks so much in advance for any help.

Some things have changed since that wiki was written, and more are about to change - read the info here: http://london.usembassy.gov/irs/index.html

The FBAR only applies to accounts either in your name (jointly or individually) or an account where you have signature authority. If the savings AC is only in your husband's name, and you cannot (literally) go to the bank and withdraw money, then it's not reportable. Just make sure you know how the account is set up. Sometimes a second person is not an 'account owner' but does have signature authority. In any case, the FBAR is not onerous - all on-line, and takes a few minutes to fill out the form.

As far as filing your returns, if straightforward, do it yourself. In many cases the IRS 'free fillable forms', a calculator (or computer & spreadsheet) are all you need. Just make sure you are reading the filing thresholds properly. You will (likely) be filing as 'married filing separately'; the 2010 threshold was $3650; the $9350 was for a single person. In 2011 it was $3700 (MFS) and $9500 (single). If you were self-employed in the UK, then you will be filing a Schedule C to report SE income. You also need to make sure you met the bona fide residence or physical presence test for 2011.

Also, be aware that US tax could be due on income below the FEIE exclusion amount.

Or is there really a need for an attorney with my case?
You definitely don't need an attorney to file a tax return, and probably don't need an accountant.

Other more knowledgeable folk will jump in with answers. I'm just an ordinary ex-pat who (grudgingly) files a return as best I can :-).

On an slightly unrelated note, if you don't have it already are you planning to apply for UK citizenship before you move back to the US?

Hm, okay - yes, that's slightly more confusing than I thought! Thanks for the tip-off that things have changed recently. I think since I only really filed one year of tax in the USA (I had only started working in 2010) that maybe my experience (lack thereof) means I should suck it up and just pay for an accountant.

I'll double-check on the FBAR, and see if I have signature authority on that account. Good to know it's not difficult - we wouldn't even need to file it until next year, as it was only early this year that the account had that sum in it.

As far as getting UK Citizenship, to be honest I don't think we really plan to return to this country for anything more than family visits on occasion. However, I also know that life can take many turns and it's best to have options...so I do want to go ahead and maintain UK citizenship if possible. It's just overwhelming to think of it, repatriation, and my tax. Another reason to just pay a bit to get the tax weight off of my mind, I suppose!

I only ask because so many people have left thinking they wouldn't return and then find they can't come back if they want to because of the rule changes. ILR expires after 2 years away and you'd have to start fresh if that ever happened. UK citizenship doesn't have any onerous requirements like taxation the way the US does, so you don't lose anything (except the cost of the application of course!). If you already have ILR or will have it in the near future, I'd strongly urge you to get it.

Definitely agree re: getting citizenship. The cost is well worth it to ensure choice in the future, and approvals are pretty fast right now.

Another question I'm going with Greenbacks Tax Service, so far so good.

I was told that they can e-file 2014 for me, and that I will have to mail 2013 & 2012. She will provide me with 'proof of filing' for 2014... Fair enough. However, since I'm doing these taxes so that I can use them as part of my husband's IR-1 visa package, I was told that I may need to provide 'proof of filing' for all 3 years?

Is there anyway I can get that from the IRS after I've sent these two back years? Also, will I just send them to the IRS in the US, as the branch here in London seems to have shut?

Anybody here submitted tax documentation for this visa before? I'm sure, but you may no longer check this forum. Just wondering if I need "proof of filing" (whatever that means) for all 3 years.

Efiling any of these returns sounds really weird advice because you can't efile under streamlined. Any reason why you want to file quietly and not use streamlined?

Most individuals will find incidentally that there are considerable advantages in having US tax returns prepared outside of the United States for individuals who do decide to use the offshore streamlined procedures.

These include:
1.   The client and the adviser being located in similar time zones.
2.   Client documents and workpapers being held outside of the United States; which many people perceive as providing additional protection in the event of IRS investigations.
3.   Advisers outside of the European Union are unable to offer the protections to clients provided by the Third European Money Laundering Directive, which requires all tax professionals throughout the EU to be regulated and supervised for anti-money laundering protection purposes. Here in the UK it is indeed a criminal offence to offer tax advice unless the adviser is supervised. Quite unlike within the EU, there is no requirement for mandatory regulation of tax advisers in most of the United States.
4.   The ability in the unlikely event that things ever go wrong to get issues addressed through a supervisory body that is closer to the client than any regulator located several thousand miles away.