Reply
New Member
Posts: 11
Registered: ‎10-14-2012
0

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
Posts: 2,300
Registered: ‎01-22-2012
0

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?

 

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
Established Contributor
Posts: 547
Registered: ‎02-14-2012
0

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.

AmEx Platinum | AmEx BCP | AmEx Delta Gold | CSP | Chase Freedom | NFCU cashRewards Visa Sig | NFCU Plat MC | WM MC | Discover it | JCP


Moderator Emeritus
Posts: 11,149
Registered: ‎12-30-2011
0

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)
Current Score: EQ 04 700, TU 04 731, EX 98 725 (05/24/15)
Goal Score: 700 on EQ 04 (01/01/16)


Take the myFICO Fitness Challenge
Valued Contributor
Posts: 2,708
Registered: ‎10-16-2008
0

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.

 

 

 

 

Valued Contributor
Posts: 1,186
Registered: ‎07-18-2009
0

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 Siggy18k, Amex Plat (60k H/B), Citi AA EWMC 25k
Valued Contributor
Posts: 2,300
Registered: ‎01-22-2012
0

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.

 

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
New Member
Posts: 11
Registered: ‎10-14-2012
0

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
Posts: 2,300
Registered: ‎01-22-2012
0

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 Emeritus
Posts: 7,225
Registered: ‎09-16-2011
0

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.

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



Take the myFICO Fitness Challenge
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.