4506C and Unlimited Spending on a Business Charge Card

[joeyv1985]

All,

I just got an Amex Business Plat about a week ago. Will Amex request a 4506C if the balance reports more than say $40K on my monthly statement? When a client has a payment on the way, I'll pay the corresponding vendor invoice with this card. After the client's check clears the bank, I'll pay the said Amex transaction. It won't be unusual to pay several invoices at once with just one vendor totalling over $20K. It won't happen often, but it will happen from time to time. 

[BearsCubsOtters]

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@joeyv1985 wrote:

All,

I just got an Amex Business Plat about a week ago. Will Amex request a 4506C if the balance reports more than say $40K on my monthly statement? When a client has a payment on the way, I'll pay the corresponding vendor invoice with this card. After the client's check clears the bank, I'll pay the said Amex transaction. It won't be unusual to pay several invoices at once with just one vendor totalling over $20K. It won't happen often, but it will happen from time to time. 

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Nobody knows for sure what triggers any kind of review at Amex. As a general rule, it is not always wise to make heavy purchases with a brand new account. However,  if they are comfortable with your stated income and assets, it may not spook them at all. 

[FinStar]

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@joeyv1985 wrote:

All,

I just got an Amex Business Plat about a week ago. Will Amex request a 4506C if the balance reports more than say $40K on my monthly statement? When a client has a payment on the way, I'll pay the corresponding vendor invoice with this card. After the client's check clears the bank, I'll pay the said Amex transaction. It won't be unusual to pay several invoices at once with just one vendor totalling over $20K. It won't happen often, but it will happen from time to time. 

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Do you have any other business charge cards or any persnal charge cards with AENB?

If you were approved recently, it's doubtful you'd be able to charge the $40K expense right away, then again this depends on what revenues + personal income you reported on the app. You can try the Check Spending Power tool to determine if AENB will approve such a large transaction. A 4506C request could be triggered by a variety of factors which can include any abnormal spending patterns, specific or questionable transactions, reported income or revenue discrepancies, etc.

[joeyv1985]

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@BearsCubsOtters wrote:

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@joeyv1985 wrote:

All,

I just got an Amex Business Plat about a week ago. Will Amex request a 4506C if the balance reports more than say $40K on my monthly statement? When a client has a payment on the way, I'll pay the corresponding vendor invoice with this card. After the client's check clears the bank, I'll pay the said Amex transaction. It won't be unusual to pay several invoices at once with just one vendor totalling over $20K. It won't happen often, but it will happen from time to time. 

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Nobody knows for sure what triggers any kind of review at Amex. As a general rule, it is not always wise to make heavy purchases with a brand new account. However,  if they are comfortable with your stated income and assets, it may not spook them at all. 

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I was on the phone with a rep, and he told me a transaction of $40K would go through. That's a number I wouldn't dare try right out of the gate. Maybe in about 6 months, but not this early.  

[joeyv1985]

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@FinStar wrote:

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@joeyv1985 wrote:

All,

I just got an Amex Business Plat about a week ago. Will Amex request a 4506C if the balance reports more than say $40K on my monthly statement? When a client has a payment on the way, I'll pay the corresponding vendor invoice with this card. After the client's check clears the bank, I'll pay the said Amex transaction. It won't be unusual to pay several invoices at once with just one vendor totalling over $20K. It won't happen often, but it will happen from time to time. 

---

Do you have any other business charge cards or any persnal charge cards with AENB?

If you were approved recently, it's doubtful you'd be able to charge the $40K expense right away, then again this depends on what revenues + personal income you reported on the app. You can try the Check Spending Power tool to determine if AENB will approve such a large transaction. A 4506C request could be triggered by a variety of factors which can include any abnormal spending patterns, specific or questionable transactions, reported income or revenue discrepancies, etc.

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I got an Amex Platinum a year ago, then an Amex Business Cash in May of this year. The latter was through an email promotion. The Amex Business Plat came through an email promotion as well. It was hard to pass up a $150K SUB. An Amex Rep told me I could run a $40K transaction with no issues, however, that's a number I dare not try right now. I did a $7,100 transaction earlier in the week and the next transaction will be Monday 11/29 for about $15K and another one for about $5K. My clients have funds on the way and I'll pay these corresponding invoices in kind. 

[Liberty33]

This is not a direct answer to your question but it is a solution to the problem of getting a 4506C from Amex or anyone.  

If one uses a trust with 501c3 status then one doesn't have to report or pay any taxes to the IRS.  No reporting means if you get sent a tax form from anyone like a 4506C from Amex, you simply don't report or do anything with it since you are a non reporting corporation.  

Tax forms become a non issue since your trust never reports anything ever.  There is no application process for 501c3 status for a trust.  So it is free to do if you know how.  There is no disctinction between business or personal expenses or income or anything like that with this, one simply can do any financial transaction anywhere and never report or pay taxes to the IRS.  

Your trust is automatically tax and reporting exempt as soon as you get your EIN online.  No applicaiton process of any kind.  

I hope this helps out with the issue of getting a 4506C.  As a long time accountant I like to help out when I can.  

[joeyv1985]

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@Liberty33 wrote:

This is not a direct answer to your question but it is a solution to the problem of getting a 4506C from Amex or anyone.  

If one uses a trust with 501c3 status then one doesn't have to report or pay any taxes to the IRS.  No reporting means if you get sent a tax form from anyone like a 4506C from Amex, you simply don't report or do anything with it since you are a non reporting corporation.  

Tax forms become a non issue since your trust never reports anything ever.  There is no application process for 501c3 status for a trust.  So it is free to do if you know how.  There is no disctinction between business or personal expenses or income or anything like that with this, one simply can do any financial transaction anywhere and never report or pay taxes to the IRS.  

Your trust is automatically tax and reporting exempt as soon as you get your EIN online.  No applicaiton process of any kind.  

I hope this helps out with the issue of getting a 4506C.  As a long time accountant I like to help out when I can.  

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Thanks for the insight. I don't have a trust. Just a business checking account and personal checking account.