South Carolina Taxing Information
You have the right to appeal a proposed assessment and generally must appeal, in writing, within 90 days of receiving the proposed notice. During the appeals process you have the right to representation by a lawyer, certified public accountant or other enrolled agent.
SCDOR is responsible for providing an explanation of any tax, penalty or interest that you owe. Notices are sent to the last known address of the taxpayer and if you receive notification you are required to pay those taxes. If you do not agree with the tax notice you need to appeal within the allotted time. If you fail to respond to the notification within the required time, enforced collection actions may begin including, but not limited to: liens, levies or wage garnishments, seizure and sale of property and license revocation or suspension. You may be held responsible for any fees incurred with attempts to collect that past due debt.
SCDOR encourages taxpayers to file on time and pay as much as possible since penalties and interest are assessed on unpaid balances. However, if you are unable to pay in full, you may request an installment arrangement to make scheduled payments on your outstanding liability. If you are approved for an installment arrangement, a minimum down payment of 10% of the total liability will be required. A tax lien will be recorded for the liability that is covered under the agreement and penalties and interest will continue to accrue until the balance is paid in full. In order to remain compliant with the agreement, all future tax returns and payments must be filed/paid on time. Failure to file or make future payments on time or failure to make scheduled monthly payments may result in enforced collection tactics.
If you ahve been levied, or have been warned or threatened with a levy action, get immediate help.
Another form of forced collections that may be used if you fail to pay your taxes is a levy against your wages, bank account or other property you own. Your property may be seized and sold in order to collect that taxes owed.
If you fail to comply with tax laws, you may have your application for a license denied or a current license may be revoked, suspended or cancelled. You will be told in writing the reason for the actions and you have the right to repeal the decision within 90 days of notification.
If you are expecting a refund but owe other taxes, your refund may be intercepted and applied to your outstanding tax liability.
Penalties may be assessed if you fail to comply with state tax laws. The following are common penalties that may be added your tax liability if you fail to file your return on time or fail to pay the full amount due. Other penalties may apply.
Failure to File on Time – penalty is 5% of the tax amount if the failure to file is one month or less. There will be an additional penalty of 5% for each additional month or fraction of the month during which the failure continues (not to exceed 25% in the aggregate). If you fail to file, regardless of whether any tax is due, SCDOR will make an estimate of the amount due and issue a proposed assessment for that amount.
Failure to Pay on Time – the penalty is ½% of the amount of tax if the failure is not for more than one month. An additional ½% penalty will be added for each additional month or fraction of a month (not to exceed 25% in the aggregate).
Power of Attorney
You have the right to authorize an individual to represent you in proceedings with SCDOR. In general, SCDOR allows a return preparer to explain the return, and allows representation before the Department by attorneys, certified public accountants, and agents enrolled to practice before the Internal Revenue Service. To do this you must file Form SC2848, Power of Attorney and Declaration of Representative.
In the event that you fail to pay the amount assessed or to set up an installment agreement, SCDOR may place a tax lien on your property. This means that you will be unable to sell or borrow against your property until the debt is paid off. A lien is public information and may negatively affect your credit score.