American Express

[rothbear]

What I don't understand about this.........OP says this guy has almost 800 FICO. I only have a 805 and I have NEVER in my lifetime filed for bankruptcy, missed any type of payment on ANY loan or credit card, have AmEx and Visa in my name and second name on Discover with very high credit limits on all three, have a paid off home and car (loan in my name). I understand that this is affected by the fact that I don't currently have a car loan or mortgage or tons of credit cards.........but come on, shouldn't that be a GOOD thing??? I have had all those type of debts at one time or another and have never, ever defaulted on anything or even been late. Every month I pay off the credit cards in full. Shouldn't this tell them that I am financially astute and secure???

Just saying............

I am an advocate of people paying off their debts one way or another. I agree........pay back the $10K or don't get an AmEx card. Simple as that. And if I see one more of those ads about companies who "help" people get their tax bills lowered I'm going to scream. You obviously made the money, now pay the taxes on it.

[LeagleEagleDFW]

Originally Posted by rothbear

if I see one more of those ads about companies who "help" people get their tax bills lowered I'm going to scream. You obviously made the money, now pay the taxes on it.

What nonsense is this? If you aren't looking for each and every way to minimize taxes, you're either crazy or doing it wrong.

[suzy_q2010]

Originally Posted by LeagleEagleDFW

What nonsense is this? If you aren't looking for each and every way to minimize taxes, you're either crazy or doing it wrong.

I think rothbear means those who fail to pay all the tax they do owe, not those who legally minimize what they owe.

I agree with the bear.

[NextStage]

Originally Posted by rothbear

And if I see one more of those ads about companies who "help" people get their tax bills lowered I'm going to scream. You obviously made the money, now pay the taxes on it.

Here's how this works from my past experience** - Someone doesn't file their taxes for a few years. The IRS finally decides they'll estimate the amount due. They base their estimate on the high end of what they believe you would have made in a year based on profession and geographic area. They don't include any deductions. Then they add in interest and penalties.

These companies you mention generally help people construct a case for what they actually made in income and their deductions. Actual documents are the best source of income and deductions - but I believe if you can construct a fairly documentable history the IRS will accept most of the case. Once your actual income and deductions are documented, the tax bill and resulting interest/penalties go down substantially.

The IRS isn't reducing the tax - they're just adjusting it to what is actually due vs their incredibly high estimate. You still pay interest and penalty - but only on the true tax amount due.

**I'm a bookkeeper and have helped a couple clients reconstruct past history and records so they could dispute incredibly high tax bills.

[johngolf]

I use my AMEX card all the time and I love the protection and customer service they offer me. I carry a MasterCard as backup but only use it every so often to keep it current.

Bankruptcy or not, the OP's friend stiffed AMEX for $10K. Can one not understand why they do not wish to do business with someone who did this to them? Would you? Burn me once, shame on you. Burn me twice, shame on me.

[LeagleEagleDFW]

Originally Posted by suzy_q2010

I think rothbear means those who fail to pay all the tax they do owe, not those who legally minimize what they owe.

I agree with the bear.

That makes more sense, and agreed.

I'll be off now.