LiquidMovz

It is a LLC and no, personal tax returns were not filed...as there was no income to declare.

The LLC is not required to file a tax return if there was not a profit. Nor am I due to either, I took no "income" from the LLC. Any funds were a "draw"...

The point of posting was to inquire if anyone had a been in or heard any DPs of a similar situation with dealing with an FR with AMEX...

I am pretty sure I just need to close the cards and come back to them next year when I have the Tax Returns to provide for 2017...

The other Q is whether I pul the AU from my mothers account to prvent that account from being flagged?

I was...I am not any longer. This year I am getting W2 income from the LLS and all Personal Expenses are separate...

mia

I think you need to speak with your accountant about your understanding that labelling a transaction a "draw" makes it something other than income.

mysterym

i think its simple.... you go to get a mortgage to buy a house, boat, etc, they want to see pay stubs / tax returns that backs up the income you put on your application. if you have no tax returns to show income, good luck!

LiquidMovz

I understand what draw vs. income is...I am currently taking income of $9K/mo as of Jan. 1...fully documented and run through my personal personal accounts.

My intent for reaching out on my post was not tax or corporate structure advice, but anyone having experience in dealing with AMEX in a FR with providing alternate documentation...

I have run my own LLC's and Corps for over 30 years, been in Mortgage Financing for over 30 years and understand what it means to "document" income, as well as the ways to qualify for mortgages and financing fully documented.

As stated in my post, I am laying down the history for that as of the 1st of the year moving forward...

I appreciate the comments, but they are not addressing my questions in any way...

If anyone has experience or can point me to any data points pertaining to my Q's...I would be grateful.

Discussing my corporate structure and "how to" or "how it should have been done" comments are not what I am looking for...

mysterym

if you put $NNN,NNN down as income on your application and they are now asking for proof of income, you will need something supporting that you get that income. pulling $$ out of a bank account as a "draw" probably does not count as income. if you have no tax filings, paystubs, etc, you are going to have a problem i think as AMEX will now see that you really do not have any income...

mia

HERE is a report from January 2016 in which bank statements were used. They may still want you to complete the 4506-T so that they can verify that no return was filed, or they may ask for a different year.

LiquidMovz

@mia - a thousand Thank Yous! That is exactly the kind of data points I am looking for!

I appreciate that!!!!


@mysterym - I get that and as stated...I do currently have Paystubs and bank records to support my "current" income...it just doesn't apply to 2015.

Happy

I can tell you that AMEX does accept bank statements. As long as your bank statements have long history and the transactions on it has some consistency, i.e. having an overall balance that does not fluctuate big time, and the balances are reasonable in terms of what you spent, you will be fine. You do NOT need the tax return routine - that applies to those who dont have decent balances in their bank accounts to show their ABILITY TO PAY - that is what matter the most to AMEX. Having 6 figures in your bank accounts all the time means MORE than having 6 figures gross income which after taxes and living costs, ain't too much left. When they say "money in the bank" sometimes do mean something!

gsxsilver

If this is true, I wonder how it'll affect those of us with a schwab amex. Since technically amex has access to our aggregated account balance.

LiquidMovz

@Happy - I do have "bank statements have long history and the transactions on it has some consistency" I have them dating back to 6/2012...they will absolutely support the amount spent and cashflow...

Any suggestions on how to get them to take those instead? This would be a real solution to the situation...I am seeing a buch of DPs that say...NOPE TR's or cancellation!

My issue now is how to get them to take those in lieu of the TR's...I only spent on the 2 biz accounts, they are brand new accounts (this happened in the 1st week of activation). So I would think I have somewhat of a case to point them towards the business cash flow...they approved my personal, but I never use that.

I have yet to call the FR rep back (I have until the 25th to comply), as I wanted to have my ducks in a row to plead the case or take my own preventative action and close the accounts myself to avoid a "Closed by Institution" on my CR in these beginning stages.

I would really like to keep these guys if at all possible (even if they give me hard limits for a while, as I am just at the beginning stages of building my credit file and think they will be beneficial long term.

My biggest concern is being at risk of them deciding no dice, by either denying me the chance to provide alternate Documentation or if I do, deciding NOPE we don't like it anyway...

I am even considering providing the executed 4506-T - even though they won't get anything back, just to show I am willing to comply...in hopes that would be when I can offer alternate documentation. Logic tells me that won't work...I am trying to see if there are any data points on this (good or Bad)

Not sure if that is a big no-no (signing the 4506-T), I am meeting my accountant tomorrow...and hopefully he can shed some light on that.

Does anyone have any "knowledge" or can point me to DPs talking about whether providing the 4506-T, even though there was no filing, could get me in "other" trouble beyond the FR results?

zorbachs

Does getting a business card in general trigger an FR? I was FR'd in 2014 for reasons unknown and came out without any reductions in credit or anything. I have since gotten an SPG, Green and ED card this year.

I am looking at the Gold Business card for the 50k signup bonus but am sort of worried I may be hitting them too hard too fast, and my side business brings in little revenue and isn't registered.

mysterym

No

silver02accord

Just got a call from amex for my biz plat card and my father's biz plat card (on the same day no less and from the same representative)

Both cards were recently used to pay larger estimated taxes online ($15-$20k) via 1040es.com or whatever it is.Each card was used once for a payment.

Stated income was truthful on both business which are separate from each other and owned each by myself and father. Anything I should expect here?

Are they likely to request verification of transcripts?

Troopers

If income is true and legit, you'll be fine. Submit any requested documents.

silver02accord

They asked 4 questions in regards to money orders, currency exchange etc. Answered no to all sounds like that was all they needed on the one account.