Do I need to file tax returns in USA while living in UK?

I have lived and worked in the uk since 2006 and have yet to fill out a us tax return. since April 2006. I am not sure if I even need to fill a form out.   I haven't had an income in the USA since the end of 2005 which I did file a return for the following April.   I don't mind going back and filling out forms but don't want to spend a lot of money on an accountant to do it for me. I am going back home in November for Thanksgiving and thought I could sort it out then.  Any help is greatly appreciated.

I haven't received any paperowork from the irs asking for any information so wasn't sure I needed to do anything.  If anything I have student loan payments I have been paying and could claim it on my return.

Have a look on page 3 of Publication 54. If you meet the filing requirements, then yes, you need to file a return.

http://www.irs.gov/pub/irs-pdf/p54.pdf

So it states the following
Your income, filing status, and age generally determine whether you must file an income tax return. Generally, you must file a return for 2012 if your gross income from worldwide sources is at least the amount shown for your filing status in the following table.
single $9,750.00


So it is saying I have to fill out a tax return if I have made $9750.00 dollars or more period and it doesn't matter if I did not live in the us at the time?  Am I understanding this correctly? 
I know in the UK if you are out of the country over a certain amount of days you don't even pay tax and the us is saying I have to possibly pay tax while not even living there?  What am I paying for?

So it is saying I have to fill out a tax return if I have made $9750.00 dollars or more period and it doesn't matter if I did not live in the us at the time?  Am I understanding this correctly?

If you are single, yes, you are understanding that correctly. Welcome to the tax world of the US expat.

The US is one of the few countries that taxes people based on citizenship rather than just residency. It even says so in your passport. It doesn't matter if you haven't even set foot in the US for years, you still have to file if you meet the filing requirements. You may not owe anything, but filing is mandatory. Also, if you have bank accounts in the UK and at any point in the year the total balance goes above $10,000, you also have to file the FBAR to let the Treasury know.

It doesn't matter if you haven't even set foot in the US for years, you still have to file if you meet the filing requirements.

In fact, it doesn't matter if you have never set foot in the US, you still have to file if you meet the filing requirements if you are a US Person. Born in the UK to a US parent(?), then you're a US person and you have to file.

So it is saying I have to fill out a tax return if I have made $9750.00 dollars or more period and it doesn't matter if I did not live in the us at the time?  Am I understanding this correctly? 

Yes. It doesn't matter whether you've lived in the US or not.  As a US citizen, you are taxed on your worldwide income regardless of where you live.

I know in the UK if you are out of the country over a certain amount of days you don't even pay tax and the us is saying I have to possibly pay tax while not even living there?  What am I paying for?

You're paying for the numerous things that are funded by taxes for US citizens whether or not they live in the US.  

Renewing a US passport automatically provides your address and SSN to the IRS, so they could easily find you in Scotland.  Her Majesty the Queen also signed FATCA into UK law this Summer so that UK banks will start passing your contact details directly to the HMRC to forward to the IRS.

It is sensible to catch up soonest with the IRS and FinCEN for past omissions of tax return and FBARs.

Renewing a US passport automatically provides your address and SSN to the IRS, so they could easily find you in Scotland.  Her Majesty the Queen also signed FATCA into UK law this Summer so that UK banks will start passing your contact details directly to the HMRC to forward to the IRS.

It is sensible to catch up soonest with the IRS and FinCEN for past omissions of tax return and FBARs.

Hi there- this threads is really helpful, and worrying... I am starting to panic... My husband and I were married in 2008, moved to the UK and since then, I haven't filed taxes. I read something a few years ago and though that I didn't need to file, but now I feel sick inside and I'm so worried that I've missed something big.

First--- I completely forgot that I still haven't changed my name on my SSN. Do I need to do that first?
Second- how do I find forms for all the years I haven't filed for and how far back do I need to go?
Third- where do I submit the forms? When I was in the US, I always used HRBlock, so I don't know the first thing about doing this on my own and I am feeling completely overwhelmed.

Thank you each. I am starting to get a lump in my stomach.
Thanks

Don't panic. Unless you are/have been in a high earning occupation, with complicated tax issues, you probably don't owe anything, but you do need to file for each year that your income was above the threshold for your filing status (in your case, probably married filing separately). Unless your husband is a US citizen or green card holder, his income does not need to be included - only yours.

You can download the 1040 and applicable schedules from the IRS website for each year. Look at the instructions, and take a deep breath, get your calculator out and do 1 year at a time.

For any/all years that you had more than $10K (aggregate over all your accounts) in bank or other financial accounts at any time during the year, even if only for a day, you need to file a FBAR form.

If your situation is complicated, you may want to go to an accountant, but it's highly likely that won't be necessary.

Does the $10,000 threshold count only foreign accounts or does it include US accounts?

So if someone had $9,000 in a US account and £5,000 in a UK account, would they need to file an FBAR?  I'm guessing no, but just thought I'd double check. 

No - it's only foreign accounts, but does include all financial accounts - brokerage etc, not just bank accounts.

Out of curiosity, wouldn't the threshold back in, say, the 1970's been a lot lower than now?

Aye BostonDiner, you are on to something.

Unfortunately, the threshold hasn't really changed since the FBAR first came into being. There's much discussion about this on some sites, and there have been estimates as to what the threshold should be today using, for example, the yearly rise in the cost of living. Estimates for what it should be today are in the area of $150,000 to $200,000.

The $200,000 threshold for form 8938 may seem like a lot today, but in 30 years (if it follows the example of FBAR), it may not be that much. 

Some thoughts on this thread:

If you have foreign income or foreign accounts that place you above the relevant thresholds, there are those in Congress who automatically assume you are a criminal, money launderer, drug baron, or tax cheat. There are also those in Congress and the IRS who realise that some people do live abroad, and are not any of the above, and are leading ordinary, legal lives. They have therefore placed a responsibility upon those people living abroad who are above the thresholds. If you are not any of the nefarious types above, then you must file a yearly tax return and other information forms which will prove your 'innocence'. It's required under citizenship based taxation.

Hyperbole? Possibly.

If you have not met that responsibility, there is no "Oops! Sorry, made a mistake, here's the info; won't happen again, let's forget about it and get on with things" button.

Instead, you have 5 or 6 choices as to how you amend your oversight. They range from a 'quiet disclosure' as Vadio has noted, to the current 'official' option called the 'Streamlined' disclosure (and those beyond). Each and every option carries a certain amount of risk for the taxpayer.

It's very important for anyone who may find themselves in this position to do some homework. (Sorry, but there are no options on this, other than to employ someone to do it for you.)

Do not go forward on any of the options until you fully understand the positives and potential dangers of each.

And, you really should go forward. Don't hide your head in the sand. As Guya pointed out, that's becoming increasingly difficult to do.

Again, as always, IMHO only.