Is it true that IRS will audit any back taxes file as a self employed with no 1090misc on IRS record .

No, this is no reason to audit. Most of the self employed do their own business so they never get 1099-misc.

Can you turn in two tax return the 08 & 07 at the same time without any problems.

You CAN, but I do NOT recommend it.

The 2007 return will go to a different section of the IRS for processing than the 2008 return. If you mail them in the same envelope, you increase the chance that one or both returns will get lost.

Send them in SEPARATE envelopes.