The South Carolina Department of Revenue (DOR) performs many of the same functions as the IRS, except at the state level. One of the primary duties of the SC DOR is to ensure that all taxes due are collected on time. If you owe back taxes in South Carolina, you shouldn’t hesitate to contact the Department of Revenue regarding your repayment options.
If you don’t pay your taxes due by the filing deadline, the DOR will send you a Notice of Assessment, which specifies the amount of taxes and penalties you owe. If you can’t pay the bill in full, you may be eligible to set up an Installment Agreement to pay off your tax obligation over time. The state will give you up to 48 months depending on how much you owe. To request a payment plan, you’ll need to complete Form FS-102, FS-102B and submit it along with a 10% down payment. If your request is approved, the DOR will add a $45 processing fee to your total balance due. Penalties and interest will continue to accrue during the repayment period and a tax lien will be recorded against any real property you own. If you have any refunds due, these may be seized and applied to your balance.
An Offer in Compromise allows you to pay less than the full amount of taxes owed. Generally, South Carolina residents may qualify for an Offer in Compromise when they’re unable to pay their tax bill in full because of financial hardship, collecting the liability would be difficult because of insolvency or there’s a doubt as to whether you actually owe the full amount due. To request an Offer in Compromise, you’ll need to fill out SC Form 656. When you submit the form, you’ll need to send a payment for 10% of your proposed offer. If your settlement offer is accepted, you’ll need to pay the remaining balance due within 30 days. You must also agree to file all of your state tax returns on time and pay any taxes owed in full for the five years following the date of acceptance.
When you have an outstanding tax obligation, the Department of Revenue will assess penalties and interest on what you owe. Interest will continue to accrue until the liability is satisfied but you may be able to waive some or all of the penalties. To qualify for a partial or full abatement, you’ll have to explain why you were unable to pay your taxes on time. Generally, an abatement is only granted when circumstances beyond your control prevented you from filing on time or you were unaware that any taxes were due.
If you need to get in touch with the Department of Revenue, you can visit one of their taxpayer service centers located across the state. If you prefer to get in touch by phone, you can call the Taxpayer Assistance individual tax hotline at 1-844-898-8542 Option 1.
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