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New Member
UtahNewbie
Posts: 11
Registered: ‎10-14-2012

Being asked by Amex for tax return?

my background: I'm 21, arrived at U.S. last year (so I don't have a tax return now), credit history for eight months. I'm a college student now, I started a business of buying products on U.S. website and then selling the products to Chinese buyers two months ago. 

I've had an Amex zync card for four months, I charged about $800 each month for the first two months. The third month,from when I started my little business, I charged about $1500 and paid if off before the due date. And the fourth month, I charged about $5500 for the first 20 days of this billing period and the balance is $4000 now.

Yesterday, I received a call from Amex financial review department, asking me to provide some files about my income or some tax return form of 2011. I told them that I didn't file the tax return last year because I didn't have any income by then( I know it is technically illegal). And Chinese buyers contacted me and paid me through some Chinese website like Ebay ( Taobao.com, if you have heard of it), I can provide them the transaction list on it, but they said it's not verifiable.

And they said they have to (regretfully) close my account next week.

My question:
1. Is it because I suddenly charged too much on my account that triggered a red flag in their system? Or they think $5000 is too much for me?

2.How will this affect me if I apply for some other Amex card in the future? I plan to apply for the Amex 6% blue cash back card at the end of this month. Will I be given a lower credit limit, asked to provide some income document, or simply rejected because I looked like a suspicious customer?

3. What will happen to my points after they close it?

Thank you.

Valued Contributor
CreditScholar
Posts: 2,300
Registered: ‎01-22-2012

Re: Being asked by Amex for tax return?


UtahNewbie wrote:

my background: I'm 21, arrived at U.S. last year (so I don't have a tax return now), credit history for eight months. I'm a college student now, I started a business of buying products on U.S. website and then selling the products to Chinese buyers two months ago. 

I've had an Amex zync card for four months, I charged about $800 each month for the first two months. The third month,from when I started my little business, I charged about $1500 and paid if off before the due date. And the fourth month, I charged about $5500 for the first 20 days of this billing period and the balance is $4000 now.

Yesterday, I received a call from Amex financial review department, asking me to provide some files about my income or some tax return form of 2011. I told them that I didn't file the tax return last year because I didn't have any income by then( I know it is technically illegal). And Chinese buyers contacted me and paid me through some Chinese website like Ebay ( Taobao.com, if you have heard of it), I can provide them the transaction list on it, but they said it's not verifiable.

And they said they have to (regretfully) close my account next week.

My question:
1. Is it because I suddenly charged too much on my account that triggered a red flag in their system? Or they think $5000 is too much for me?

2.How will this affect me if I apply for some other Amex card in the future? I plan to apply for the Amex 6% blue cash back card at the end of this month. Will I be given a lower credit limit, asked to provide some income document, or simply rejected because I looked like a suspicious customer?

3. What will happen to my points after they close it?

Thank you.


1. You got triggered for a FR for a couple of reasons: a huge spike in spending in a relatively new account, and putting business expeses through a personal card. The latter alone is enough for them to close you down. Amex will not allow business spending on a personal card, and have very good ways to track this (compared to other lenders).

 

2. If you apply for another card in the future and are approved, expect to be hit with a FR immediately. You won't be able to even activate or use the card unless you pass the FR. You're essentially locked out of Amex for at least the next couple of years, since you won't be able to produce the 4506-T that they will demand.

 

3. I'm not sure about your points, maybe someone else has an idea?

 

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Established Contributor
adavis425
Posts: 512
Registered: ‎02-14-2012

Re: Being asked by Amex for tax return?

[ Edited ]

The points will be forfeited if not used before the account is closed. Points are lost the moment the account is no longer in good standing.

 

Edited to add: Though the account may not yet be closed, you may be locked out of it. I am not certain that that would preclude you spending your points, but I would think so.

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Moderator
Revelate
Posts: 8,329
Registered: ‎12-30-2011

Re: Being asked by Amex for tax return?

[ Edited ]

Welcome to the forums, though I wish they were under different circumstances.

 

Edit: others stated everything else relevant, got distracted in typing.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
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Valued Contributor
Uborrow-Upay
Posts: 2,710
Registered: ‎10-16-2008

Re: Being asked by Amex for tax return?

Hi, UtahNewbie!  Welcome to the forum.

 

I've gotta ask this...what did you state as your income when app'ing this card?  I know you told them (after the fact) that you didn't have any income by then...and I wonder why they issued in the first place.

 

You must have stated some level of acceptable income, no?

 

That being said, your question (5 of them, even though they're labled as three) is irrelevant.

 

 

 

 

Established Contributor
cashnocredit
Posts: 957
Registered: ‎07-18-2009

Re: Being asked by Amex for tax return?


UtahNewbie wrote:

my background: I'm 21, arrived at U.S. last year (so I don't have a tax return now), credit history for eight months. I'm a college student now, I started a business of buying products on U.S. website and then selling the products to Chinese buyers two months ago. 

I've had an Amex zync card for four months, I charged about $800 each month for the first two months. The third month,from when I started my little business, I charged about $1500 and paid if off before the due date. And the fourth month, I charged about $5500 for the first 20 days of this billing period and the balance is $4000 now.

Yesterday, I received a call from Amex financial review department, asking me to provide some files about my income or some tax return form of 2011. I told them that I didn't file the tax return last year because I didn't have any income by then( I know it is technically illegal). And Chinese buyers contacted me and paid me through some Chinese website like Ebay ( Taobao.com, if you have heard of it), I can provide them the transaction list on it, but they said it's not verifiable.

And they said they have to (regretfully) close my account next week.

My question:
1. Is it because I suddenly charged too much on my account that triggered a red flag in their system? Or they think $5000 is too much for me?

2.How will this affect me if I apply for some other Amex card in the future? I plan to apply for the Amex 6% blue cash back card at the end of this month. Will I be given a lower credit limit, asked to provide some income document, or simply rejected because I looked like a suspicious customer?

3. What will happen to my points after they close it?

Thank you.


Not illegal at all. You are not required to file a tax return unless you make above a certain amount of money.

 

And yes, running biz purchases (when you own the biz) is frowned on. Especially if it's inventory, less so if it's T&E. If you are an employee they love it when you spend it on T&E as part of your job that you get re-imbursed for.

 

 

I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy15k, Amex Plat (60k H/B), Citi AA EWMC 25k
Valued Contributor
CreditScholar
Posts: 2,300
Registered: ‎01-22-2012

Re: Being asked by Amex for tax return?


Uborrow-Upay wrote:

Hi, UtahNewbie!  Welcome to the forum.

 

I've gotta ask this...what did you state as your income when app'ing this card?  I know you told them (after the fact) that you didn't have any income by then...and I wonder why they issued in the first place.

 

You must have stated some level of acceptable income, no?

 

That being said, your question (5 of them, even though they're labled as three) is irrelevant.

 

 

 

 


The tax-free threshold is pretty damned low, and if anyone put an amount under that on their Amex application I doubt they'd be accepted.

 

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J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
New Member
UtahNewbie
Posts: 11
Registered: ‎10-14-2012

Re: Being asked by Amex for tax return?

"I've gotta ask this...what did you state as your income when app'ing this card?  I know you told them (after the fact) that you didn't have any income by then...and I wonder why they issued in the first place. "

 

Actually I lied, I said I worked in a college and I had an annual income of 50K when I applied for the card.   Yeah, I know it is perjury which can be used to prosecute me.

Valued Contributor
CreditScholar
Posts: 2,300
Registered: ‎01-22-2012

Re: Being asked by Amex for tax return?


UtahNewbie wrote:

"I've gotta ask this...what did you state as your income when app'ing this card?  I know you told them (after the fact) that you didn't have any income by then...and I wonder why they issued in the first place. "

 

Actually I lied, I said I worked in a college and I had an annual income of 50K when I applied for the card.   Yeah, I know it is perjury which can be used to prosecute me.


At this point I wouldn't count on Amex giving you a card again in the future. I might be wrong, but this definitely isn't a good look.

 

FICOs: EX: 826, EQ: 817, TU: 810
Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL
Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank American Airlines Executive World Elite MasterCard - $22,500 CL
J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
Moderator
webhopper
Posts: 7,230
Registered: ‎09-16-2011

Re: Being asked by Amex for tax return?


UtahNewbie wrote:

"I've gotta ask this...what did you state as your income when app'ing this card?  I know you told them (after the fact) that you didn't have any income by then...and I wonder why they issued in the first place. "

 

Actually I lied, I said I worked in a college and I had an annual income of 50K when I applied for the card.   Yeah, I know it is perjury which can be used to prosecute me.


 

Let them close the card. Don't apply for a new one. Don't ever lie on an app again. You could go to jail for this. Pay the 4k immediately and hope that you avoid prosecution.

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