HELP ME with TAXES

Hi everyone,

new to the forum. In a nut shell, I have not done my taxes since I moved out of the US as of 2009. I have been working in the middle east and do not have any tax papers to support the last 6 years or so. Is that ok? I am relocating to the UK this month for a new job which I am required to be aligned with tax filing in UK and US. Any recommendations who can help me with this in London or where to start? Need to sort this out ASAP.

Thank you for being nice and please don't drill me for not searching history on here. I thank you for your patience.

The proper way back to IRS compliance would be the Streamlined  Foreign Offshore Procedures. It requires 3 years of back tax returns and 6 years of back FBARs, provided you meet the qualifications of the programme.

https://www.irs.gov/Individuals/International-Taxpayers/Streamlined-Filing-Compliance-Procedures

https://www.irs.gov/Individuals/International-Taxpayers/U-S-Taxpayers-Residing-Outside-the-United-States

https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-FBAR

Give one of theses firms a call. Tell them you require completion of the above forms within the next 10 days. It may cost a bit more for the rapid completion.

http://www.americantaxreturns.co.uk/

http://britishamericantax.com/

http://www.frankhirth.com/

Thank you for being helpful. I appreciate it. Just because I am new in the UK, any rough idea what I am looking at for the below? Just an estimate between X amount to Y amount? Might not need to go down the 10 days route. Will enquire about normal processing.

Probably not a lot over £10K to £15K for the preparation, depending on your exact circumstances. In addition, since you've been in the Middle East where tax is generally low to nil, you'll likely owe $'s for each of the tax years. Again, it all depends on your types and amounts of income sources.

UK tax,.....unless you have had certain types of income from the UK, I'm not sure what tax or reporting is required, if any, at the present.

I have a bit more time now for a proper reply to your question, and I would feel guilty if you had a heart attack.

We don't know (and don't want to know) the exact details of your past financial situation. The types of income, the amount of income, the types of investments you may have, all build a very different picture for each individual.

Someone with a salary below the FEIE limit, and with minimal income from interest in a bank account will have a very different scenario from someone with a salary over the FEIE limit and with PFIC's, trust reporting, etc.

It's up to the preparer you select, the time frame you request, and their set hourly fee schedule as to the cost of coming into compliance. It's beyond the ability of this forum to offer an answer as to "how much it will cost". With minimum income and other sources, it may be as low as £3,000. With complex investments and a higher salary, it may well be above £10,000. Only you and your preparer will know the answer to that question.

There are a number of firms, both large and small, in London. Their rates will vary somewhat. You'll have to do some googling and some shopping around. BUT, do look for those that are dual US/UK qualified preparers.

Once you are established in the position with your UK employer, tax relations with HMRC will happen more or less automatically. Your employer will be able to explain more as regards your exact situation.

To be honest, I almost had a stroke reading your first reply. I was like in my mind OMG what am I getting myself into. You are right, I lived in Kuwait and UAE/Dubai and both are tax free. My salaries in both locations were not over USD $70-75K per year.

I got only USD $15K in my bank account as savings that I brought with me to the UK.

Like I said, the last time I filed was in 2009 and have not since then. With the above figures mentioned, how would you advise me please when shopping around to approach firms so they know I am not an idiot and I know what I need to rectify and be up to speed with my tax? Anything additional to the 3 forms you have mentioned?

Thank you so much for being very helpful so far. I greatly appreciate it.

Like I said, the last time I filed was in 2009 and have not since then. With the above figures mentioned, how would you advise me please when shopping around to approach firms so they know I am not an idiot and I know what I need to rectify and be up to speed with my tax? Anything additional to the 3 forms you have mentioned?

Don't feel like an idiot. When it comes to the intricacies of US tax reporting, we're all idiots. Unfortunately, that may also include some less qualified so called professional preparers. Most qualified preparers in the UK will understand your situation, and you won't look an idiot. Simply explain your situation.

Again, I can't answer as to your exact situation, but the FEIE limit is today slightly over $100,000. If your salary (earned income) was below that limit, and even if you paid no tax in the Middle East, and provided your unearned income (bank interest) was low, you may not owe any tax to the US.

There will be more than 3 forms required for each year. The pros will walk you through the requirements. The fact that you know you'll likely need the Streamlined option is sufficient.

It's possible, given a tolerance for form filling and research, to do this yourself, but a great deal of time will be required to get yourself up to speed with the IRS rules. There is, of course, a chance of making errors, and a critical statement is required as to your "wilfulness" of not filing since 2009. Completing the FBAR (FinCIN 114) is relatively straightforward online, and with some research, you could easily do this yourself. With over $10,000 in a bank account in the UK (or the Middle East) you will be required to file the FBAR.