How Do I sort out my taxes????? All new to me!

Hello all!
Lucky me, I have recently discovered that as an American citizen (purely passport from birth, not lived there for nearly 20 years) that I should have been filing my tax returns, I have only been in employment for the just under 3 years and understand that I must file taxes for my past 3 years work here in the UK, I have had a look and understand that i need to fill out forms 1040 and 2555, it is slightly more complicated as I have been self-employed since April of this year. I have never worked in the US so never filed any returns before. Luckily as a contractor I have only received a salary, no pension and I have all my payslips and P60s. Does anyone know how straight forward this would be to fill out? I am moving to America in December and am thinking it may be easier to get an accountant but if it is possible to complete this myself it could save a small fortune! any ideas?? Does anyone know what the tax year is in the states?

First of all, don't worry.

All of the forms can be downloaded for free from the IRS website.

It sounds like you'll need to file Forms:

1040
Schedule B
1116
2555
6251
TD F 90-22.1

If you can't figure them out the IRS at the Embassy in London will help for free.

Cheers for that, I spoke to the IRS in London and they just indicated that I would need 1040 and 2555, but I don't think they understood the self-employment part. One last question is that I have worked out my earnings, from April (start of UK financial year) i will have earned approximately the limit threshold, however if they take into account from January I will be pushing the $100k mark which I guess means heavy penalties for me?? 

1. I thought you said you were only self-employed in 2007, so you can't be reporting self-employment income before filing your 2007 return next year.

2. I do not know why you think you may owe penalties given that you can claim credit for UK tax on form 1116.

1. I thought you said you were only self-employed in 2007, so you can't be reporting self-employment income before filing your 2007 return next year.

2. I do not know why you think you may owe penalties given that you can claim credit for UK tax on form 1116.

Dont't worry, i am just useless with all this at the moment, you are right, I have only been self-employed since April 2007. I am just thinking myself ion circles. Think I have got the majority of it under control now. My new company have agreed to hepl me out and let me use the acocunts department to have an explanation and are convinced that as my situation isn't really complex that I can sort this out with their help

Do you have a taxpayer number or a SSN?  The IRS sent me a letter about 17 years ago asking me to file a return, but when I travelled to the US to apply for a SSN, I couldn't get one.  Maybe getting a taxpayer number is easier, no idea.

My strategy is to not do any paperwork for them.  I'll find out if it's good/bad sometime in the future.

madeira's answer may be a little unclear.

1. If you are a US citizen then you need to get an SSN (you are not entitled to any other kind of number).

2. You can find details of how to apply at the US Embassy website (you certainly do not need to travel to the US to apply).  See here: http://london.usembassy.gov/cons_new/acs/fbu/index.html

3. Wilful failure to file US returns and forms disclosing foreign bank accounts is a criminal act subject to potentially substantial fines and/or imprisonment (of course only just becoming aware is not willful failure, but choosing to ignore the IRS for 17 years and saying this on a public website sounds like the kind of evidence the IRS would use to prosecute)

4. There may or may not be tax payable depending on income, gains, amount of UK tax paid etc.  However if tax is unpaid and willful failure has occured then one could be prosecuted under English law under UK Money Laundering Regulations because proceeds from tax evasion are considered as proceeds of crime.

Not only do I need to travel to the US to apply, I need to set up a personal interview, and provide them with a bunch of documents that just don't exist.  The simple instructions don't apply, in my case.  Off the top of my head, they want:

The usual ID, but also adoption records, marriage certificates
Tax returns going back to 1984
Official proof of residence, for every address, since 1972*
School records from 1972
A written explanation as to why I wasn't in the US, for every year from 1972
A police record check

*This is impossible.  As in, such documents do not exist.  (Even if I had old mail from all the places I've lived, that's not good enough. I lived under a pseudonym for a few years, too, which doesn't help.)  So, no way to get the number.  I've spoken to the Seattle office and one in Livermore, CA, and they both tell me 'no'.  I managed to gather most of the other stuff. 

So, I gave up.  Anyhow, going to a nice jail in the States is my retirement plan!  I highly doubt they'll take me, though.

Madiera,

Life's changed a bit since you last tried to apply umpteen years ago.  You can just call the US Embassy in London and ask to speak to the Social Security department.  They can help you get one here in the UK, without having to fly to the US.  The one in London is used to dealing with folks like you, and will be happy to come up with alternatives for the items you could not verify.

So, I gave up.  Anyhow, going to a nice jail in the States is my retirement plan!  I highly doubt they'll take me, though.

US citizens usually think of their citizenship as incredibly precious, almost as an honor, but here's a case where its a burden. I wish the US would get in line with other  nations and tax on residence not citizenship.

US citizens usually think of their citizenship as incredibly precious, almost as an honor, but here's a case where its a burden. I wish the US would get in line with other  nations and tax on residence not citizenship.

Hear, hear!

Luckily all of us who are US citizens have the democratic right to vote and lobby our congressperson if we want tax laws changed.