clydewolf

Jsilo,

An American citizen is to pay income tax on his/her world wide income.

In 2007, your business may have incurred large expenses with little or no income, and you need to report that to the IRS, so yes, you will need to file a 2007 tax return.

Because you are self employed, you would file a 1040 Schedule C, and approprite supporting forms.

You should get a copy of some IRS Pubs to understand what you need to do:
- Pub 17, Your Federal Income Tax
- Pub 334, Tax Guide for Small Business
- Pub 505, Tax Withholding and Estimated Tax
- Pub 535, Business Expenses
- Pub 536, Net Operating Loss (NOL) for Individuals, Estates and Trusts
- Pub 583, Starting a Business and Keeping Records
- Pub 946, How to depreciate property

There are probably other Pubs that you may need, so you should get a good CPA for your business.

Depending on where you have your business or do business you are likely to need a state income tax return also.