Tax Law Insights

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, partnerships, banks, savings and loans, utilities, trusts and estates, and tax-exempt organizations qualify. The South Carolina tax returns and payments on the following returns qualify for this relief: SC 1040, SC 1120, SC 1120U, SC 1120S, SC 1065, SC 1101B, SC 1104, SC 1041, and SC 990-T. The taxpayer may be a calendar year or fiscal year taxpayer. Interest or penalties related to this tax relief will be waived.
• Estimated Tax Payments Extended. South Carolina tax relief to July 15, 2020, now applies to estimated tax payments due June 15, 2020. A taxpayer that has a quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, may make the payment by July 15, 2020, without penalty.
• Refund Dates Extended. South Carolina tax relief allows affected taxpayers to July 15, 2020, to file a claim for refund that was due to be filed between April 1, 2020, and July 15, 2020.

SCDOR cautioned, however, that the filing and payment extensions in SC Information Letter #20-8 do not apply to current audit, appeals, or litigation matters, but that a taxpayer may request an extension of time to file a protest of a proposed assessment by submitting a written request for extension with the Audit Section before the expiration of the applicable time period.   The relief in SC Information Letter #20-8 also does not apply to any current collection matters, including payments due under any payment plan previously entered into with SCDOR.