Haven't filed US taxes in 5 years?! New bank accounts in UK?

Hi there,

So the last time I filed us taxes was for 2008. Had no idea I had to file(my fault obviously).

I came to the uk in june 2009. Did not work and was back in the states july 2011 till january 2012. I started work in the Uk april 2012 and have been working since making 14k a year to start. Now up to about 27k.

I'm not sure what to do really? I do know that I need to get my taxes in order as I have a family trust to sort out in the US that I am probably due money/property from.

This all came to my attention when  I went to open up a nationwide bank account today and there was a check box to confirm that I was not a US citizen!!  

There was this link http://www.hmrc.gov.uk/fatca/

Its all a little bit over my head. I do have a few bank accounts here in the uk. I'm wanting to open up a new one with nationwide as it has a lot of benefits( mobile insurance, breakdown cover, travel insurance etc). I'm not sure if I should hold off until I have filed taxes or if its fine and its just checks that they have to ask though nothing really happens with the information?

You will need to catch up filing income tax returns and FBARs in the US. Once you have assessed your circumstances you may decide that the current streamlined procedures are the best option for delivering the paperwork to the IRS.

You will probably find though that you need a dual qualified US/UK tax adviser because of the foreign trust issues; as the UK tax position on this may need specialist advice.

You should be careful about setting up that account as thanks to FATCA, banks are now required to report accounts held by US citizens. I would strongly suggest getting caught up on your US taxes and FBAR's (if applicable) before doing anything further.

Fortunately it does sound as if the Streamlined program will be a good fit for you, and with that program you can file only the last three years of taxes (and six years of FBAR) and be considered back on track. Also, as the rates you have been paying in the UK are likely higher than what you would pay in the US, there is little chance of you owing the US anything. If you do not owe anything, you do not need to worry about fines or penalties for coming forward.

Lastly, I agree with Guya that you may need professional help to navigate the trust issues as they can get rather complicated.

Good luck!

This all came to my attention when  I went to open up a nationwide bank account today and there was a check box to confirm that I was not a US citizen!!  

It would be interesting to know what the consequences of not ticking the box. Will it be:

A: They assume you are US citizen and ask you for an SSID. They open the account.

B: They refuse to open the account as NS&I have done along with several others.

C: They require you to produce proof that you are US tax compliant as Swiss banks are now doing before opening (or even allowing you to keep) the account.

Thanks for the advise. The trust is in the US. Is that going to affect matters in the UK at all?

HMRC explain some of the issues here:
http://www.hmrc.gov.uk/trusts/types/non-resident.htm