Discover 4506-T

[Windowguy]

I have two accounts open with Discover for 5 years, one account $9,500 and second account opened earlier this year with a $20,000 limited. Today I received a email and a phone call that my account is froze and that they wanted to verify my income. I believed this is because I change my income after hitting the love button last week. It was approved but I believe the income change might triggered a request to verify income.

My income is $105,000 from my business however I sold one of my investment properties this year that netted an additional $45,000 so I put my currrent income as $150,000. The 4506T form is editable and they are only requesting my 1040 form however, I thought about adding my 1120 corporation form to the request. The reason being if I show the business assets (property, cash, etc) I will be able to state my case why the change in income. Any thoughts 

[Anonymous]

Just send them what they want and explain the discrepancy and hope for the best. 

The problem that you may run into is that a one time $45K influx is not the same as expected annual income and shouldn't have been put down as such. 

[AverageJoesCredit]

Yup that will do it imo. Going from 105k to 150k though im sure it happens for many is a big leap and the computer probably flagged the discrepancy. Good luck on Revolving and thanks for sharing

[randomguy1]

I wonder why so random. I went from 140 to 200 due to a bonus and picking up a second job/projects and they didn't ask for a form on my last cli request. 

[Anonymous]

Only the OP knows if the 45K is one time or expected. They could be getting into real estate and unloading one property per year (not unheard of). The form does say expected income from investments.

Only thing that matters; is the $140K somewhere on your tax transcript. If you "pay yourself" a lower amount to keep your taxes low and keep the bulk of your earnings under the corporate umbrella then yes, the discrepancy could be an issue.

[M_Smart007]

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@AverageJoesCredit wrote:
Yup that will do it imo. Going from 105k to 150k though im sure it happens for many is a big leap and the computer probably flagged the discrepancy. Good luck on Revolving and thanks for sharing

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Bee careful when you get that $100K raise AJC

[silver_idle]

Only supply 1040, w2, k1, schedule c, etc., if requested. A 1120 would be useless to supply since the corporation is a separate entity that file its own taxes.

[OmarGB9]

Yea issuers are always gonna question a huge increase in income. OP, was it just a one time $45k thing, or will that be able to be replicated?

[gdale6]

If it were I, I would close the accounts, no one gets anything from the IRS unless its a mortgage app.

[CreditCuriosity]

Yes that was a mistake adding 45k sale of property as that isn't income(you should of known that isnt income, but assets).  They most likely use sources like the money works, etc to see your income and that jump set off alarm bells..  Send it in what you have being the 105k income if you so choose  and hope for the best or just close the account.  It is up to who to proceed