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Dear hlxwyse8 -
If your returns for 2007 and 2008 included more than $400 of self employment income, the IRS will not qualify for the exemption. Filing the application will start a process that will include reviewing prior years returns.
Question 5 on the Form 4361 asks what years you had income. By stating 2007 & 2008 with a filing in 2010, your exemption should be automatically denied.