Due to unprecedented temporary closings of offices and businesses and stay-at-home orders issued across the United States during the Coronavirus (COVID-19) pandemic, many businesses have implemented temporary work at home options for employees. As a result, the South Carolina Department of Revenue (SCDOR) announced temporary relief regarding a business’s establishment of South Carolina state tax nexus solely because an employee is temporarily working in a different work location due to COVID-19, and also provided guidance with respect to employer withholding ...
On April 13, 2020, the South Carolina Department of Revenue issued SC Information Letter #20-8 with updated guidance concerning COVID-19 related filing and payment extensions. This guidance provides:
- Filing Deadlines Extended. South Carolina tax relief to July 15, 2020, now applies to all taxpayers that have an income tax, franchise tax, or corporate license fee filing or payment deadline (originally or pursuant to a valid extension) between April 1, 2020 and July 15, 2020. Individuals (including individuals working or living outside the United States), corporations ...
On March 17, 2020, the South Carolina Department of Revenue announced, through SC Information Letter #20-3, that all South Carolina tax filing and payment deadlines starting on April 1, 2020 were extended to June 1, 2020. Penalties and interest are waived by SCDOR during this period. This includes not only state income taxes, but also sales taxes, admission taxes, and other taxes administered by SCDOR.
The IRS had initially announced that the due date for 2019 federal income tax payments was extended to July 15, 2019, but that the April 15th tax return filing date was not extended. The ...
The South Carolina Department of Revenue (SCDOR or DOR) recently issued a draft of long-awaiting guidance overhauling DOR’s administrative practices concerning disputed tax audits, refunds, license revocations, and other related matters. The draft guidance, SC Revenue Procedure #20-x, was released January 22, 2020. If finalized, the new Revenue Procedure will apply to all administrative protests and appeals filed with SCDOR on or after the effective date of the Revenue Procedure (presently, January 2020), and including protests and appeals pending as of this date.
The ...
The South Carolina Department of Revenue (DOR) has issued a proposed Revenue Ruling which will have a significant impact on South Carolina tobacco retailers, if finalized in its present form. The proposed Revenue Ruling, to be effective on January 1, 2020, addresses tobacco manufacturer rebates and refunds to retailers, and which DOR characterizes as “buydowns” and “promotional payments”- i.e. sales volume discounts. The proposed Revenue Ruling determines that these payments to retailers are subject to sales tax.
Tobacco manufacturers have provided their retailers ...
Once the South Carolina Department of Revenue (SCDOR) completes an audit of a taxpayer, if there are any proposed adjustments and additional taxes SCDOR seeks, it will issue to the taxpayer a proposed notice of assessment with an examination report. A taxpayer then has 90 days to administratively protest/appeal the proposed assessment within SCDOR.
SCDOR formerly had an "appeals" audit function. This appeals audit function was abolished by SCDOR, however, and appeals/protests of proposed audit assessments now simply go back to the auditor, and to the auditor's supervisor.
If a ...
Residents of South Carolina are required to file an income tax return, even if they do not earn income in the state. A resident is an individual who is "domiciled" in South Carolina. South Carolina law does not define domicile. The South Carolina Administrative Law Court (ALC) in a recent decision, however, has analyzed whether a taxpayer was domiciled in South Carolina for purposes of our state income tax. Floyd v. S.C. Dept. of Rev., Admin. Law Ct., Dkt. No. 15-ALJ-17-0458-CC (February 11, 2016).
The taxpayer was a native of Spartanburg, South Carolina. She lived in Oxford ...
The South Carolina Department of Revenue (SCDOR) administers the state's tax laws. Like the IRS, SCDOR audits tax returns, but only certain returns subject to South Carolina tax, such as South Carolina income tax returns, sales and use tax returns, and certain property tax returns.
Depending on the complexity of the issues being audited or examined by SCDOR, SCDOR audits can be conducted through correspondence, or through a field audit.
SCDOR field audits are generally conducted by "auditors." Each auditor has an immediate audit supervisor, and audit supervisors report to a ...
If a taxpayer owes South Carolina taxes, the South Carolina Department of Revenue (SCDOR) will require payment of these taxes, including any related penalties and interest. SCDOR will consider payment plans for outstanding state taxes, however.
SC Form FS-102, Installment Agreement Request, should be submitted for this purpose. A nonrefundable fee of $45 and a 10% down payment is required. All tax returns during the period of the payment plan must be filed. Collection information statements using IRS forms (e.g. 433-A, Collection Information Statement for Wage Earners and ...
The South Carolina Department of Revenue (formerly the South Carolina Tax Commission) is the state's tax agency. Established as the Tax Commission in 1915, SCDOR came into existence in 1993, in connection with a state restructuring act.
SCDOR is organized centrally, with its headquarters in Columbia, and regional "Service Centers" and local field offices throughout the state. All state tax returns are filed and processed by SCDOR in Columbia.
SCDOR is led by a Director, Rick Reames, and an Executive Management Team consisting of Mont Alexander (Deputy Director of Field ...
South Carolina generally follows federal law for purposes of the assessment of tax, including time limits on which taxes may be assessed (statutes of limitation). The South Carolina Department of Revenue (SCDOR) generally has 36 months from the date an original return was filed or due to be filed (whichever is later) in which to assess additional taxes. S.C. Code Ann. § 12-54-85(A). An important exception concerns substantial understatements of tax, however.
For federal purposes, an extended 6-year statute of limitations exists for substantial omissions of income - where a ...
The South Carolina Department of Revenue ("DOR") is the state agency charged with collecting most South Carolina taxes, including income taxes, sales and use taxes, and withholding taxes. If a taxpayer fails to pay an assessed tax liability, DOR may file a tax lien against a taxpayer, with the lien notice being filed in one or more of the county register of deeds offices. The filing of the lien notice makes the delinquent tax liability a matter of public record.
Prior to March 1, 2014, when a taxpayer fully paid the amount secured by a filed tax lien, DOR would file a lien satisfaction with the ...
South Carolina imposes various taxes and reporting requirements on purchasers transacting business in the state. A sales tax is imposed on the sale at retail of tangible personal property and certain services in the state. South Carolina imposes a sales tax of six (6) percent (plus an additional one (1) percent "local option" tax in certain counties) on the retail sale of tangible personal property between a purchaser and seller within the state. A seller or retailer is required to collect the sales tax from a purchaser and remit the tax to the South Carolina Department of Revenue ...
The "South Carolina Small Business Regulatory Flexibility Act of 2004" requires the South Carolina Department of Revenue (DOR) to review its regulations every five years to ensure that regulations do not place any unnecessary burdens on small businesses. Another provision of South Carolina law requires DOR to review its regulations every five years to determine if they should be retained, amended or repealed. At the conclusion of the review process DOR prepares a report and provides it to the South Carolina Small Business Regulatory Review Committee and the South Carolina Code ...