Has anyone looked at the Tax Justice Network? They publish a "Financial Secrecy Index" and a "Corporate Tax Haven Index" that ranks jurisdictions and provides case studies. Their reports contain specific examples of how the Cayman Islands and other tax havens are used. Also, the book "Treasure Islands" by Nicholas Shaxson has some great concrete examples. It's a few years old now but explains the mechanisms really well with specific company examples.

Great question! I've been researching this area too for a graduate course on international taxation. One resource that hasn't been mentioned yet is the OECD's BEPS (Base Erosion and Profit Shifting) reports - they contain detailed case studies of how multinational enterprises use structures involving the Cayman Islands. The OECD Action 11 report specifically includes anonymized but detailed examples of profit shifting arrangements. While company names are redacted, they provide flowcharts showing exactly how intellectual property is transferred to Cayman entities and how royalty payments flow back. Another angle to consider: many private equity and hedge funds are structured as Cayman Islands entities for tax efficiency. The SEC's Form ADV filings from investment advisers often reveal these structures. KKR, Blackstone, and Apollo Global Management all have extensive Cayman operations that are documented in their public filings. For a more recent perspective post-TCJA (Tax Cuts and Jobs Act), the Joint Committee on Taxation published reports in 2021-2022 analyzing how the new rules affected these structures. They found that while some traditional arrangements were curtailed, new variations emerged.

Don't forget you need to keep track of the interest you're paying tax on! If you never receive the money, you can file a claim for credit or refund using Form 1040-X for the year you reported the phantom interest income. But you only have 3 years from the date you filed the original return to file for a refund.

I've dealt with a very similar situation and want to add a few important points that might help you navigate this faster: First, when you call the IRS, specifically ask to speak with someone in the "Refund Inquiry" department rather than general customer service. Tell them you have an approved penalty abatement but the refund wasn't issued despite receiving a 1099-INT. Use the exact phrase "missing refund from approved abatement" - this helps them understand the specific issue quickly. Second, ask them to check if your refund was offset against any other tax liabilities or if it's sitting in an "unpostable" status. Sometimes these refunds get stuck in their system due to address verification issues or other administrative flags. Most importantly, get a case number and the name of the agent you speak with. If the first person can't resolve it, ask them to escalate to their manager or transfer you to the Taxpayer Advocate Service if it's been more than 30 days since your abatement was approved. Keep detailed records of every call - date, time, agent name, and what they told you. This documentation will be crucial if you need to escalate further. The IRS has specific timeframes they're supposed to meet for processing refunds, and if they miss these, you may be entitled to additional interest. Don't give up - this is absolutely resolvable, but it often requires persistence with their phone system!

This identity verification stuff is getting out of hand fr. Like I get they tryna prevent fraud but why they gotta make it so complicated for us regular folks just tryna get our money back 😤

From my experience, in-person verification at a TAC office is usually faster once you actually get the appointment, but the scheduling can be a pain. I'd recommend calling your local office first thing Monday morning to see what their availability looks like. Meanwhile, you can also try checking your mail daily for the 5071C letter since sometimes it comes earlier than expected. If you're really in a rush for the refund, maybe try both routes simultaneously and go with whichever becomes available first?

Another option is to try calling the IRS early in the morning (like 7-8 AM) when they open - you'll have better luck getting through. Also, if you have a local VITA site nearby, they sometimes have connections that can help speed things up. I know it's frustrating but hang in there!

Had this same issue last month! If you're really in a rush, you can also try the "Where's My Refund" tool on IRS.gov - sometimes it'll give you a direct link to verify online without waiting for the letter. Also check if your state has any IRS satellite offices, they're usually less crowded than the main TACs. Good luck!

If you can't get an in-person appointment quickly, try contacting your local Taxpayer Advocate Service. I had a similar issue last February and they were able to help expedite the verification process when I explained it was affecting my business operations. Called on a Tuesday, had a callback Thursday, and was verified by the following Monday. Completely free service that's designed exactly for these bureaucratic roadblocks.

I work at a tax prep office and see this identity verification issue constantly during tax season. Here's what I tell clients: Yes, you can absolutely verify in person without the letter, but call ahead to confirm your local TAC office handles identity verification (not all do). Bring your driver's license, Social Security card, and a recent bank statement or utility bill. Pro tip: if you have a passport, bring that too as it counts as both photo ID and citizenship proof. Also, ask specifically for Form 4506-T when you go - this lets you request your own tax transcripts which can help speed up processing of your business returns once verification is complete. The wait times are brutal right now (2-3 hours typical), so bring snacks and patience.