Citi Request for IRS Form 4506-T: Advice Sought
 

In my recent App-o-rama I applied for 8 credit cards and received 7 right away, including the Citi Aadvantage Visa. The exception was the Citi Aadvantage Amex, where Citi wants me to send them an IRS Form 4506-T, Request for Transcript of Tax Form.

This seems very intrusive, and I'm not inclined to send them the completed form if there's a chance I could get the card without it in my next App-o-rama.

Any thoughts? Did I wait too long between same-day Citi card applications? Is it worth sending the form, especially if the tax return shows income somewhat below the level originally stated? Or is it better just to wait until the next application opportunity?

Thanks.....

You can fill it out and send it in but it will most likely (if not 100%) involve another credit pull. Also there is no guarantee you would get the bonus since it would be well after the initial visa approval. You will have to wait 18 months +/- to apply for the AA cards again so you cannot include it in an upcoming app spree. This same thing happened to me, I just let it go and focused on getting the biz card 65+ days later. Not worth the trouble IMO.

My relative got the same request for tax transcript as well. The Citi AA visa was instant approval, but not the Amex version. Any more experiences here beyond longhorn11's? Will the bonus still be available? Will there be another credit pull?

There are more experiences in the master AA card thread, just search 4506-T.

Have you submitted a 4506-T to see the information included? It's not at all intrusive. However, if you overstated your income that's a different matter.

Why do you consider it to be intrusive? You are asking Citi to lend you money, and as part of their consideration of your application, they are seeking to validate financial information that you provided to them. I view it as being a sound banking practice.

I know some have had this argument before but if I recall correctly, spouses, dependents (children), deductions, etc. are listed on your transcript that the banks receive. To some that is intrusive since a pay stub or W-2 could provide the same type of assurance. My opinion, if you want to fill it out for Amex go for it but with Citi you are getting another credit pull with the risk of not getting the bonus.

Clearly it's not worth it if another credit pull is involved. So I didn't return it.

Regarding income, I've never previously seen this as a major factor in bank decisions, even though they ask for a figure. So I've never been concerned about being exact. It sounds like some folks are recommending you be exact, but tax returns omit deferred compensation that in my case amounts to well over $20K annually. So there's a discrepancy right off the bat.

It's a hassle, and your ability to pay really depends on your ability to manage money and limit wasteful spending (for example, by owning a house but not a car), rather than your income. But banks don't have the time, resources, or waivers of privacy laws to delve into customer's finances to that extent.

It is definitely intrusive if you don't want your significant other's financial information/other personal information to be looked at by Citi which they can get from the tax return for married joint filings.

Thanks. I'll search there

What "personal information"? 4506-T is a transcript of the tax return, not a copy.

Not sure about the contents of the transcript honestly, so I have no clue. For joint returns it won't provide spouse's name/SSN/Income?

I ordered one for curiosity and was surprised how little detail is disclosed. Your spouse's name and Social Security number are included, but the Adjusted Gross Income is not broken out by earner or source. The exception is if there is Self Employment income, which is listed by earner.

See my post in the Membership Rewards forum here for a list of the data fields.

As more issuers are using these to verify income I think it's worthwhile ordering a copy from the IRS (it's free), before deciding whether or not to release it. I have no problem with it.

Good info. Thanks. I am going to recommend my relative to send it in and see what happens.

I have a question about this. I get a bonus that isn't paid out until Feb (and likely will going forward). I've been including this amount in how much I make a year assuming that the card companies care more about how much I make right now instead of how much I made last year. If they were to ask me for my tax records for 2011 or 2012 this wouldn't show up even after I received the bonus in Feb. Would I be able to send them my bonus paycheck statement as proof?