PHOENIX - - The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning July 1, 2014. 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 April 2014 to take effect May 1, 2014, based on daily compounding.

Revenue Ruling 2014-14 announcing the rates of interest, is available on IRS.gov at http://www.irs.gov/pub/irs-drop/rr-14-14.pdf and will appear in Internal Revenue Bulletin 2014-27, dated June 30, 2014.