Urgent News, This is Not Good For Some Tax Payers, IRS and Cayman Islands Has Teamed Up To Fight Tax Evasion

Bottom Line:   Cayman Islands to report US Citizens' assets

GEORGE TOWN, Cayman Islands (AP) - The Cayman Islands has signed an agreement with the U.S. government to fight offshore tax evasion and encourage financial  transparency.

The U.S. Department of Treasury said in a statement Friday that the Cayman Islands will share tax information about U.S. account holders with the U.S. Internal Revenue Service.

The Cayman Islands signed a similar pact with the United Kingdom earlier this month.

The British territory is considered the world's sixth largest financial center and a major haven for private equity.

Interest Rates Remain the Same, Fourth Quarter of 2013

Interest Rates Remain the Same for the Fourth Quarter of 2013

IR-2013-74, Sept. 5, 2013

WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Oct. 1, 2013. The rates will be:

• three (3) percent for overpayments [two (2) percent in the case of a corporation];
• three (3) percent for underpayments;
• five (5) percent for large corporate underpayments; and
• one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate determined during July 2013 to take effect Aug. 1, 2013, based on daily compounding.
Revenue Ruling 2013-16 was also released today and will appear in the Internal Revenue Bulletin 2013-40 dated Sept. 30, 2013.