The South Carolina Department of Revenue (the "Department" or "DOR") issued SC Revenue Ruling #16-12 on December 16, 2016. The ruling provides guidance to manufacturers on property tax return filings, assessment procedures, and payment obligations. The ruling focuses primarily on the procedural aspects applicable to a manufacturer's property tax obligations as opposed to substantive provisions used to determine a manufacturer's property tax liability.
While a taxpayer's liability for property tax under general South Carolina law is determined based on property the ...
South Carolina offers a wide variety of economic development incentives to businesses seeking to locate or expand in the state. This incentive array focuses on certain types of businesses the state wishes to attract. One such business is the warehouse and distribution facility.
Like all states, the State of South Carolina, and its local government bodies (counties and cities), impose a number of different taxes on businesses, including a state income tax, sales and use taxes, property taxes, and local business license taxes. The South Carolina General Assembly and local ...
The Internal Revenue Code (IRC) provides that distributions from certain retirement arrangements (e.g., qualified retirement plans, individual retirement accounts (IRAs), §403(a) annuity plans, §403(b) tax-sheltered annuities, and §457 eligible governmental plans) will not be taxed (the tax is deferred) if the distribution is transferred to an eligible retirement plan (typically one of the above-described arrangements) within 60 days of receipt (i.e., a rollover distribution). The 60 day transfer requirement is commonly referred to as the "60 day rollover ...
Businesses seeking to locate or expand operations in South Carolina may be eligible for one or more types of grant funding through the State of South Carolina. Grants are designed to be a reimbursement mechanism, where the state will reimburse the business for certain project-related costs (e.g. land, buildings, roads, and infrastructure). The state often funds the grant to the local county government in which the project is located, and the applicable county government then administers the grant for the business.
Grant funding is discretionary, and may be in addition to, or in lieu ...
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 ...
The South Carolina Department of Revenue (the "Department" or "DOR") files tax liens when a taxpayer fails to timely pay his or her state tax liability. The Department files a tax lien in order to establish its priority to a taxpayer's assets. While South Carolina tax liens are similar to federal tax liens, there are important differences.
A "silent" tax lien arises in favor of DOR whenever a person fails to pay his or tax state taxes. S.C. Code § 12-54-120. DOR generally has ten years from the date of a tax assessment to collect a tax liability by seizing a taxpayer's property. S.C. Code § ...
When someone owes the IRS taxes, as a result of not paying the tax shown as due on a tax return or where the IRS audits and imposes additional taxes owed, the IRS will "assess" this tax liability, and with penalties and interest. The term "assess" or "assessment" simply means the IRS has recorded the taxes as a legal liability of a taxpayer. Once the IRS assesses a tax liability against a taxpayer, the IRS then proceeds to collect it.
The IRS has developed a series of "collection notices" sent to taxpayers in its efforts to collect assessed federal taxes. These notices are generated now by the ...
A recent case reminds us that people need to be careful when dealing with their retirement plans, particularly if those accounts are used as investment vehicles to fund business activities relating to the plan participant or owner of an IRA or 410(k) plan account. Although for many people their IRA or 401(k) account may appear to be a ready source of capital for launching a second career or finally moving that business out of the garage, if investments involving these accounts are not carefully and thoughtfully structured, adverse income tax consequences and other losses can occur.
On September 26, 2016, the IRS announced its plans for the private collection of certain federal tax debts beginning next spring. The announcement identified the following four (4) contractors that the IRS selected to carry out these collection efforts:
- CBE Group, 1309 Technology Pkwy, Cedar Falls, IA 50613
- Conserve, 200 CrossKeys Office Park, Fairport, NY 14450
- Performant, 333 N Canyons Pkwy, Livermore, CA 94551
- Pioneer, 325 Daniel Zenker Dr, Horseheads, NY 14845
The origin of this new program can be traced back to IRC § 6306, which was enacted as part of the American Jobs Creation ...
Section 501(c)(4) of the Internal Revenue Code ("IRC") exempts from the federal income tax certain nonprofit corporations that are operated exclusively for the promotion of social welfare (commonly referred to as "Social Welfare Organizations") and certain local employee organizations (the characteristics of local employee organizations are beyond the scope of this blog). Generally, Social Welfare Organizations are organizations that promote the common good and general welfare of the community as a whole.
An organization that primarily benefits a private group typically ...