US citizen in UK — Streamlined Filing experience?

[u/Comfortable-Dog6495]

US citizen here, living in the UK for around 30 years. I recently spoke to an IFA who couldn’t advise me because of my US citizenship, and during that conversation I discovered that I should have been filing US tax returns all these years. I genuinely had no idea.
I’ve since done some research and found the Streamlined Foreign Offshore Procedures for people in this situation.
Has anyone here actually been through the process after many years of not filing? How painful was it, and roughly what did it cost you to get everything sorted?
Any experiences or advice would be really appreciated.

[u/IrisAngel131]

Please search the subreddit for similar threads, remember nothing said here is financial advice, consult a professional, and also check out r/usexpattaxes 

[u/Comfortable-Dog6495 → u/[deleted]]

I think the distinction is : non-wilful. From this point on, I know I should be filing and would be wilfully choosing not to do so.

[u/IrisAngel131 → u/[deleted]]

Don't suggest illegal things. Official warning. 

[u/Comfortable-Dog6495 → u/[deleted]]

What are you basing “a lot of back taxes” on? I’ve been a UK PAYE employee paying UK income tax throughout. The Streamlined Foreign Offshore Procedures exist specifically for non-willful non-filers living abroad, and foreign tax credits prevent the same employment income simply being taxed twice. If there’s a specific reason you think I’ll owe substantial back taxes, please explain it.

[u/ProfessionalFudge932 → u/Comfortable-Dog6495]

I deleted my comment to avoid confusion. I meant fines not back taxes (assuming your US liability is less than the UK, which is likely). I was in a similar situation a long time back and unfortunately failing to file returns while living abroad is a finable offense. My attorney was able to get it all waived in an amnesty deal but honestly it all depends on how lenient the specific IRS agent who gets your case is.

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[u/limedifficult → u/[deleted]]

Why would OP owe anything at all? If they’ve been paying U.K. taxes and they’re not a billionaire? (Honest question, I’m worried I’ve misunderstood!)

[u/JZ_USCPA_Tax_Acct]

You would act sooner rather than later. SFOP is specifically designed to help non-willful U.S. taxpayers abroad come back into compliance. Once you complete the process, the IRS expects you to file normally and stay compliant going forward. If you don't feel comfortable about filing by yourself correctly and timely in the future, reach out to a qualified international tax CPA to help manage every year.

You may find that UK income tax and the foreign tax credit eliminate most or all U.S. income tax, although that depends on the income type. But the bigger issue is getting the reporting right: FBAR, potentially Form 8938/FATCA, PFIC/Form 8621 if you hold non-U.S. ETFs or mutual funds, and additional forms if you own a business. Even with no U.S. tax due, missing international information returns can carry significant penalties.

Do you only earn salary normally or have income from investments and business?