QUOTE(milane @ Sep 25 2007, 10:40 AM)

I would also like to find out where I can find the instructons from the IRS publication that shows that you were not obligated to file taxes. The say if you did not file taxes please send a letter stating why not and a copy from the IRS instructions publication. I have looked everywhere and cannot find it.
I posted this on another thread a couple days ago. Maybe it will help you too. There are also other publications with filing requirements on the IRS website. This is just the one that applies specifically to people living abroad, but the amounts are the same wherever you live.
From Publication 54 of the IRS, Tax Guide for U.S. Citizens and Resident Aliens Abroad at
www.irs.gov/publications/p54/ch01.html#d0e466 :
Filing Requirements
If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and for paying estimated tax are generally the same whether you are in the United States or abroad.
Your income, filing status, and age generally determine whether you must file an income tax return. Generally, you must file a return for 2006 if your gross income from worldwide sources is at least the amount shown for your filing status in the following table.
Filing Status* Amount
Single $8,450
65 or older $9,700
Head of household $10,850
65 or older $12,100
Qualifying widow(er) $13,600
65 or older $14,600
Married filing jointly $16,900
Not living with spouse at end of year $3,300
One spouse 65 or older $17,900
Both spouses 65 or older $18,900
Married filing separately $3,300
*If you are the dependent of another taxpayer, see the instructions for Form 1040 for more information on whether you must file a return.
Gross income. This includes all income you receive in the form of money, goods, property, and services that is not exempt from tax.
For purposes of determining whether you must file a return, gross income includes any income that you can exclude as foreign earned income or as a foreign housing amount.
If you are self-employed, your gross income includes the amount on line 7 of Schedule C (Form 1040), Profit or Loss From Business, or line 1 of Schedule C-EZ (Form 1040), Net Profit From Business.
Self-employed individuals. If your net earnings from self-employment are $400 or more, you must file a return even if your gross income is below the amount listed for your filing status in the table shown earlier. Net earnings from self-employment are defined in Publication 334, Tax Guide for Small Business.