I took a loss in 2006 with a business abroad therefore did not file tax returns per the advice of the IRS. This will be the same situation in 2007. I will have a sponsor for my I864. Will this be a problem or should I refile 2006 and file 2007 with no income.

thanks,

lou

If you are doing DCF, you will be required to provide an I-864, The I-864 requires Copy of past year's IRS return, or a letter explaining why one was not filed (Citing the advise you got from IRS). Some just file a late zero return, and attach it to the I-864.

Also I-864 has a US domicile requirement.

You can learn all about this form in this document put out by Department of State.

http://travel.state.gov/pdf/I-864GenInfo-FAQ-Final.pdf

That sounds strange that the IRS would ask you not to file any return - did this come in a letter from the IRS or did you receive this from a tax attorney/cpa. Informational returns are generally asked for even if there is no income or earnings activity to report. Businesses that lose money have to file so loss carryforwards/backs can be determined. It's a foreign business - but it's owned by an american who probably received some compensation. There is the foreign earned income exclusion, but still, I don't get the IRS advising you not to file a return - I've never seen that before.

What about intrest on savings acounts etc. You've had to live on something.

So really, if I have a sponsor for my wife, it is not necessary for me to show my tax returns, just those of the sponsor of my wife and the ability for me to show domicile. Is that correct?

Yes, You will need to show evidence of US domicile, and evidence why you were exempt from filing returns, that is something from IRS.

Your Joint sponsor, needs to provide copies of IRS returns, and perhaps employer letter, and a few recent pay stubs.

Both you and joint sponsor need to provide I-864 forms.