Financial Review discussion

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Earlier discussion is in this thread: Financial Review Discussion [2009-2013]


In the USA a Financial Review typically includes a request to submit an IRS form 4506-T which authorizes American Express to obtain a transcript of your Federal Income Tax Return for a specific year. It does not authorize a copy of the actual return. Download the form here: http://www.irs.gov/pub/irs-pdf/f4506t.pdf

Order your own transcript here: https://sa2.www4.irs.gov/irfof-tra/start.do


Other USA-based rewards card issuers also audit accounts and end unsatisfactory relationships.

Bank of America: 2013

Citibank: 2013

JP Morgan Chase: 2013.1 2013.4 2013.9 2013.12
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Old Apr 17, 17, 12:01 pm
  #721  
 
Join Date: Dec 2015
Posts: 5
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?

Originally Posted by United747 View Post
Are you paying all personal expenses out of the LLC?
I was...I am not any longer. This year I am getting W2 income from the LLS and all Personal Expenses are separate...

Last edited by mia; Apr 17, 17 at 12:24 pm Reason: Combine consecutive replies.
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Old Apr 17, 17, 12:26 pm
  #722  
mia
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I think you need to speak with your accountant about your understanding that labelling a transaction a "draw" makes it something other than income.
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Old Apr 17, 17, 12:41 pm
  #723  
 
Join Date: Jan 2010
Posts: 650
Originally Posted by mia View Post
I think you need to speak with your accountant about your understanding that labelling a transaction a "draw" makes it something other than income.
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!
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Old Apr 17, 17, 1:27 pm
  #724  
 
Join Date: Dec 2015
Posts: 5
Originally Posted by mia View Post
I think you need to speak with your accountant about your understanding that labelling a transaction a "draw" makes it something other than income.
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...
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Old Apr 17, 17, 1:31 pm
  #725  
 
Join Date: Jan 2010
Posts: 650
Originally Posted by LiquidMovz View Post
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...
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...
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Old Apr 17, 17, 2:11 pm
  #726  
mia
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Originally Posted by LiquidMovz View Post
...experience in dealing with AMEX in a FR with providing alternate documentation...
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.
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Old Apr 17, 17, 2:38 pm
  #727  
 
Join Date: Dec 2015
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Originally Posted by mia View Post
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.
@mia - a thousand Thank Yous! That is exactly the kind of data points I am looking for!

I appreciate that!!!!


Originally Posted by mysterym View Post
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...
@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.
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Old Apr 18, 17, 7:09 pm
  #728  
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Originally Posted by LiquidMovz View Post
@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.
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!
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Old Apr 19, 17, 12:32 pm
  #729  
 
Join Date: Jun 2014
Posts: 189
Originally Posted by Happy View Post
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!
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.
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Old Apr 20, 17, 12:06 am
  #730  
 
Join Date: Dec 2015
Posts: 5
Originally Posted by Happy View Post
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!
@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?
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Old Apr 21, 17, 12:09 pm
  #731  
 
Join Date: May 2014
Location: Charleston, SC
Programs: SPG/Marriot Gold, Hilton Gold
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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.
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Old Apr 21, 17, 12:16 pm
  #732  
 
Join Date: Jan 2010
Posts: 650
Originally Posted by zorbachs View Post
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.
No
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Old May 3, 17, 8:18 am
  #733  
 
Join Date: Sep 2015
Posts: 193
Financial review on 2 separate accounts

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?
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Old May 3, 17, 8:27 am
  #734  
 
Join Date: Sep 2015
Location: SFO
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Originally Posted by silver02accord View Post
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?
If income is true and legit, you'll be fine. Submit any requested documents.
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Old May 3, 17, 11:47 am
  #735  
 
Join Date: Sep 2015
Posts: 193
Originally Posted by Troopers View Post
If income is true and legit, you'll be fine. Submit any requested documents.
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.
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