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 ...
We have previously discussed the advantages of using a revocable trust to implement your estate plan. In this post we will discuss in greater detail the advantages of ease of administration, flexibility in valuation, discretion in the management, and lower cost. These advantages can be best understood by comparing the probate process to the administration of the typical revocable trust.
First and foremost, the administration of the revocable trust is much more efficient because accounting for the activities of the trust can be managed through the cooperation of the trustee and ...
Property taxes are often the largest South Carolina tax paid by manufacturers. Property taxes are assessed annually on real and personal property owned by a manufacturer (excluding inventory and supplies) on December 31st of the preceding calendar year. Property taxes are due on January 15th of the year following the tax year.
A manufacturer's property tax liability is determined by multiplying the value of its property by an assessment ratio by a local millage rate. The default property tax regime may be altered when a manufacturer enters into a fee-in-lieu of tax arrangement ...
South Carolina employers must pay a variety of taxes on employee payroll, including federal social security taxes (FICA and FUTA), and South Carolina employee income withholding taxes. While the employer is able to collect some of these taxes from the employee's wages, other taxes (like the employer matching portion of FICA and FUTA) must come out of the employer's pocket.
Another tax that South Carolina employers must pay is the state Unemployment Insurance Tax, or "UI Tax". All employers that pay wages in South Carolina must file a quarterly report with the South Carolina ...
As organizations are ramping up for 2016, it is increasingly important they have their administrative ducks in a row for the year to come. This is especially true for tax-exempt organizations operating under a model using local chapters or affiliates (as opposed to wholly-owned organizations), and even more so if those local chapters or affiliates are relying on their central organization for tax-exempt status. If the local chapter or affiliate does not comply with IRS regulations governing such a structure, it may lose its tax-exempt status and be taxed on its income as if it were a ...
Beginning in 2018, certain employers were going to be liable for a 40% federal excise tax on the value of excess benefits provided through their health plan. Health plans providing high cost benefits are referred to as "Cadillac" plans, and the new federal excise tax on high cost plans has come to be known as the "Cadillac tax".
On December 18, 2015, President Obama signed into law the Consolidated Appropriations Act, 2016, H.R. 2029 (the "2016 Appropriations Act"). The 2016 Appropriations Act includes the following three provisions relating to the Cadillac tax:
I. Cadillac Tax ...
South Carolina offers multi-state companies an alternative method of allocating and apportioning their income as an incentive for planning new facilities or expanding existing facilities in the State. Generally, a company that transacts or conducts business partly within and partly outside South Carolina is subject to income tax based on the portion of its business carried on in the State. The portion of a company's income carried on in South Carolina is determined by allocation and apportionment. The law requires that certain classes of income, less related expenses, be ...
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 ...
South Carolina imposes a sales and complimentary use tax on the retail sale or use of tangible personal property in the state. The taxes are assessed by the South Carolina Department of Revenue (DOR). Retailers are generally required to collect and remit the sales tax to the DOR, while purchasers are required to directly pay the use tax. There are significant exclusions and exemptions to both taxes. If a business retailer or purchaser does not pay the sales or use tax, the DOR may have the ability to make a "responsible person" assessment of the tax (including penalties and interest ...
Federal and South Carolina law provide income tax incentives to make it easier to save for college. Contributions made to a 529 plan (technically known as a "qualified tuition program" or "QTP") may be deductible for South Carolina income tax purposes. Earnings on contributions made to a 529 plan are not subject to federal or South Carolina income tax if they are used for qualified education expenses.
A 529 plan is a plan operated by a state designed to help families set aside funds for future college costs. Each state can establish its own 529 plan and plans differ from state to state. South ...