topic Re: AMEX FR after having my Zync for 2 Weeks in Credit Cards

AMEX FR after having my Zync for 2 Weeks

joeyh2007 — Mon, 04 Jun 2012 01:21:06 GMT

If you saw my original post, I got a Zync card and just got the dreaded call from the FR department. To this point in time, I have only spend $900 which I was planning to pay off in 3 days isn't due until the 12th.

I'm really nervous because I'm a freelancer, and as all freelancers, have a unique situation.

Most of my clients pay cash which I deposit in a bank for proof of income. Also, I work for about 100 different clients, so the clients that pay over $700/yr send me a 1099.

My total income that I have to report to the IRS is $4,000, but my TRUE income is $60,000.

So, will AMEX be able to look at my situation rationally and use my bank statements as proof of income combined with my tax forms. I ask this because I read that they only look at tax records, but I feel that they should look at any money you bring in as money that can be used to pay the card bill.

So would anybody pleease give me some constructive tips so I may pass this FR. I start the process tomorrow (monday) morning.

Thanks.

Re: AMEX FR after having my Zync for 2 Weeks

Anonymous — Mon, 04 Jun 2012 01:26:39 GMT

They are likely going to ask you for tax transcript which is going to be an issue for you. Even if you get less than 700 in income from particular client, are you saying you didn't declare as income? If that is the case, I am not sure how flexible AMEX is. Best bet is just try and work with F/R department.

Re: AMEX FR after having my Zync for 2 Weeks

LS2982 — Mon, 04 Jun 2012 01:28:11 GMT

Fingers crossed for you!!!

Re: AMEX FR after having my Zync for 2 Weeks

Anonymous — Mon, 04 Jun 2012 01:33:56 GMT

@joeyh2007 wrote:
My total income that I have to report to the IRS is $4,000, but my TRUE income is $60,000.

While I can't comment on the FR itself, I'm not sure how you got to that conclusion about your taxable income. Even if they don't send you a 1099, you still have to report the income on your taxes. Clients are not obligated to send you 1099's unless they paid you $500 or more in that tax year, but their income is still taxable. Even if they only paid you $100, you still have to pay taxes on that $100 you made. In other words, your whole $60k is taxable - if you're only reporting $4k as income, it's tax evasion, and you really don't want to get caught for that.

And you're going to have a hard time explaining that to Amex, since if you tell them you make $60k but only $4k is reported on your 1040.. it's going to look really bad to them.

Re: AMEX FR after having my Zync for 2 Weeks

joeyh2007 — Mon, 04 Jun 2012 01:37:21 GMT

My big question is.....do they only look at 1040 income?

Re: AMEX FR after having my Zync for 2 Weeks

joeyh2007 — Mon, 04 Jun 2012 01:49:26 GMT

I was able to get a car loan and manage various other credit accounts. I hope I can talk to someone in the FR department who listens. Maybe they will only put a limit on my account. Just have to sleep and call first thing in the morning.

Re: AMEX FR after having my Zync for 2 Weeks

r34dy2fly — Mon, 04 Jun 2012 01:51:36 GMT

You do realize AMEX isn't your issue here. You have a larger issue with the IRS if and when they ask AMEX to send them your annual reports and sees that there was no way you could have spent that much with how much income you're reporting.

Re: AMEX FR after having my Zync for 2 Weeks

n777ua — Mon, 04 Jun 2012 01:53:04 GMT

@joeyh2007 wrote:
I hope I can talk to someone in the FR department who listens.

I hope so; but the FR folks are notoriously rigid in their requirements. I had the dreaded FR a year ago, and no matter what I said re: my income, it was whatever was on the tax transcript only - no exceptions. Ever.

Keep us posted.

Re: AMEX FR after having my Zync for 2 Weeks

Anonymous — Mon, 04 Jun 2012 02:04:40 GMT

This is not necessarily true. There are sources of income that are not on your tax transcript. I forget how AMEX asks for your income. If it has additional sources of income or just a single income statement. Although not sure how you can explain your income situation without putting yourself at risk with IRS.

Re: AMEX FR after having my Zync for 2 Weeks

android01 — Mon, 04 Jun 2012 02:05:01 GMT

@joeyh2007 wrote:
I was able to get a car loan and manage various other credit accounts. I hope I can talk to someone in the FR department who listens. Maybe they will only put a limit on my account. Just have to sleep and call first thing in the morning.

Unfortunately, if you have been "creative" with your reported income, Amex may wonder if you'll be "creative" with paying your bills. Good luck to you, but I wouldn't get my hopes up. You can always refuse to submit your tax information to them, and they'll likely close your account as a result. IMO, that's not a bad idea, particularly if there is something you are trying to hide.

Re: AMEX FR after having my Zync for 2 Weeks

android01 — Mon, 04 Jun 2012 02:13:07 GMT

@joeyh2007 wrote:
My big question is.....do they only look at 1040 income?

1099 income is reported on Schedule C which is either reported on, or attached to your 1040.

Re: AMEX FR after having my Zync for 2 Weeks

Anonymous — Mon, 04 Jun 2012 02:10:38 GMT

good luck to you..if i were you i'd rather let them close my account just to play safe.

Re: AMEX FR after having my Zync for 2 Weeks

Repo-ed — Mon, 04 Jun 2012 02:34:55 GMT

I hope he reports back their findings.

Re: AMEX FR after having my Zync for 2 Weeks

sjt — Mon, 04 Jun 2012 03:46:17 GMT

@joeyh2007 wrote:
If you saw my original post, I got a Zync card and just got the dreaded call from the FR department. To this point in time, I have only spend $900 which I was planning to pay off in 3 days isn't due until the 12th.

I'm really nervous because I'm a freelancer, and as all freelancers, have a unique situation.

Most of my clients pay cash which I deposit in a bank for proof of income. Also, I work for about 100 different clients, so the clients that pay over $700/yr send me a 1099.

My total income that I have to report to the IRS is $4,000, but my TRUE income is $60,000.

So, will AMEX be able to look at my situation rationally and use my bank statements as proof of income combined with my tax forms. I ask this because I read that they only look at tax records, but I feel that they should look at any money you bring in as money that can be used to pay the card bill.

So would anybody pleease give me some constructive tips so I may pass this FR. I start the process tomorrow (monday) morning.

Thanks.

What did Amex actually request from you?

I was in a similar situation. What I did was pay the balance, and in addition to the IRS 4056-T authorization, I sent in copies of my bank statements, and a cover letter explaining my situation. Example:

I am a consultant currently with X amount fo clients and my 2012 YTD income is $xxx and I project my income will be $xx for 2012.

I have attached copies of mybank statement for reference and review.

Re: AMEX FR after having my Zync for 2 Weeks

Meltdownblitz — Mon, 04 Jun 2012 04:49:17 GMT

@Anonymous wrote:
good luck to you..if i were you i'd rather let them close my account just to play safe.

I'll have to agree. As others have said, you could have a bigger issue with the IRS if you are lying about your income or not reporting all of it.

I had a FR with Amex around the same time as you last year. Had a few days before paying my first Amex balance and they contacted me. I had to submit my paystubs for the last 3 months. I was "on call" in which I didn't work full time (40 hours a week) in those previous 3 months, but when I did be app for my zync I put the max income I would make if I were to work full time. I explained all this to them and they were understanding, they knew I wasn't lying by looking at my hourly on my paystubs plus x amount of tips and get a ball park of how much I was able to make. They ended up giving me a hard limit and it still stands today a year later which is sad because I have PIF all my cards and on time within the last year. Good thing is the limit they gave me is still pretty good so I'm not complaining to much.

Anyway good luck! Let us know how it turns out.

Re: AMEX FR after having my Zync for 2 Weeks

Anonymous — Mon, 04 Jun 2012 14:05:33 GMT

FR are not really a big deal. And if you find yourself needing to use the card while under FR, you can call the CSR assigned to your files to temporarily release the hold on your account.

Re: AMEX FR after having my Zync for 2 Weeks

Anonymous — Mon, 04 Jun 2012 14:38:02 GMT

@Anonymous wrote:
FR are not really a big deal. And if you find yourself needing to use the card while under FR, you can call the CSR assigned to your files to temporarily release the hold on your account.

It is when your tax transcript doesn't come close to your stated income and your additional sources of income are essentially unreported income.

Re: AMEX FR after having my Zync for 2 Weeks

Anonymous — Mon, 04 Jun 2012 16:22:15 GMT

@Anonymous wrote:
@Anonymous wrote:
FR are not really a big deal. And if you find yourself needing to use the card while under FR, you can call the CSR assigned to your files to temporarily release the hold on your account.
It is when your tax transcript doesn't come close to your stated income and your additional sources of income are essentially unreported income.

Oh. Well telling a lie always come back to hunt people.

Re: AMEX FR after having my Zync for 2 Weeks

Anonymous — Mon, 04 Jun 2012 16:32:49 GMT

Subscribed for updates. I sure hope you're reporting the full $60k on your taxes, because I think this FR may open a can of worms for you if that's not the case.

Re: AMEX FR after having my Zync for 2 Weeks

shtws — Mon, 04 Jun 2012 17:00:29 GMT

sorry, what does FR mean?