SUBJECT:
Extended Tax Relief Restated and Updated — Persons and Businesses Affected by Coronavirus (COVID-19)
(All Taxes)
DATE:
March 23, 2020
MODIFIES:
SC Information Letter #20-3
AUTHORITY:
S.C. Code Ann. Section 12-4-320 (2014) S.C. Code Ann. Section 1-23-10(4) (2005) SC Revenue Procedure #09-3
SCOPE:
An Information Letter is a written statement issued to the public to announce general information useful in complying with the laws administered by the Department. An Information Letter has no precedential value.
Internal Revenue Service Expands Income Tax Relief. The Internal Revenue Service provided special income tax filing and payment relief to those affected by Coronavirus (COVID-19) on March 21, 2020. The tax relief automatically postpones until July 15, 2020, the due date for filing Federal income tax returns (or extensions) and making Federal income tax payments originally due April 15, 2020. There is no limitation of the amount of the payment that may be postponed.
The relief is available solely for:
Federal income tax payments due on April 15, 2020;
Federal income tax returns due on April 15, 2020 for the affected taxpayer's 2019 tax year; and
Federal estimated income tax payments due on April 15, 2020, for the affected taxpayer's 2020 tax year (including payments of tax on self-employment income).
No extension is provided for the payment or deposit of any other type of Federal tax, or the filing of any Federal information return. Interest, penalties, and additions to tax with respect to such postponed Federal income tax filings and payments will begin to accrue on July 16, 2020.
See Notice 2020-18 attached and Internal Revenue Service IR-2020-58 for more information.
South Carolina Department of Revenue Extends Income Tax Relief. As directed by Governor Henry McMaster, the Department is conforming South Carolina's income tax deadline to July 15, 2020, the new Federal income tax deadline. Accordingly, the Department is extending tax relief for South Carolina 2019 income tax returns (e.g., individual, C corporation, trust returns) originally due April 15, 2020, to provide the same relief granted by the Internal Revenue Service.1 As a result, taxpayers will have until July 15, 2020 to file South Carolina income tax returns and pay income taxes due. This also includes quarterly estimated payments due on April 15, 2020. Interest or penalties related to this tax relief will be waived.
Even with the filing deadline extended to July 15, 2020, the Department is encouraging taxpayers who are due an income tax refund to file as soon as possible and file electronically. The Department is continuing to process tax returns and issue income tax refunds during this rapidly changing environment.
Other South Carolina Tax Relief (Other Than Income Tax Relief Provided Above). The Department announced in SC Information Letter #20-3, dated March 17, 2020, that affected taxpayers will have until June 1, 2020 to file and pay taxes for returns that are due between April 1, 2020 and June 1, 2020. On March 21, 2020, Governor McMaster directed that other state taxes (i.e., those taxes other than the income taxes conforming to the new federal income tax deadline) will remain delayed until June 1, 2020, as previously ordered.
The June 1, 2020 relief applies to taxes administered by the Department or tax returns filed with the Department between April 1, 2020 and June 1, 2020, including, but not limited to:
State sales and use taxes
Local sales and use taxes collected by the Department
Property tax returns filed with the Department2
Withholding taxes
Motor fuel user fees
State accommodations taxes
Beer, wine, and liquor taxes
Note: The relief does not apply to tax returns filed with a county or municipality, such as the local hospitality tax or local accommodations tax pursuant to Title 6 of the South Carolina Code of Laws. A taxpayer should contact the county regarding any tax relief being provided for tax payments made to the county or tax returns filed with the county.
Returns Filed by Affected Taxpayers. Taxpayers filing an electronic or paper South Carolina tax return will automatically receive this tax filing and payment relief. Taxpayers do not need to file any additional forms or call the Department to qualify for this relief.
Returns Filed Without Payment. Taxpayers may choose to continue to file South Carolina tax returns with the Department during the relief periods electronically, through MyDORWAY, or by paper. Such taxpayers may choose to postpone payment of the tax due reported on the return until the June 1, 2020 or July 15, 2020 relief due date. Interest or penalties related to this tax relief will be waived if payment is made by the end of the relief period.
Additional Extension of Time to File Income Tax Returns to October 15, 2020. This tax relief automatically postpones the due date of a South Carolina income tax return from April 15, 2020 to July 15, 2020. Individuals and businesses who need additional time to file beyond the July 15 deadline can request an extension of time to file by filing the appropriate South Carolina extension (i.e., SC Form 4868, 1120-T, or 8736) on or before July 15, 2020. Alternatively, if a taxpayer files a timely federal extension, this will automatically extend the time to file the South Carolina 2019 income tax return to October 15, 2020.
Questions and Other Relief.
General Tax Relief Questions and Information. Taxpayers with general tax relief questions should contact the Department at 1-844-898-8542 (toll free) or see updated South Carolina tax relief information posted on a special Coronavirus (COVID-19) page at dor.sc.gov/emergencies.
Questions Concerning Current Audit and Collection Matters. This relief does not apply to current collection matters, including payments due under any payment plan previously entered into with the Department. Taxpayers with questions concerning a current Department audit or collection matter should contact the Department's revenue officer or auditor who is handling their specific audit or collection matter.
Questions Concerning County Property Taxes. Taxpayers with questions concerning county property taxes should contact the appropriate county government official.
FOOTNOTES
1This Information Letter modifies SC Information Letter #20-3 where the Department announced that the due date for all returns and all tax payments due April 15, 2020 would be postponed until June 1, 2020.
2This tax relief only applies to any property tax return filed with the Department (e.g., PT-100, PT-300, PT-420). Business property tax returns for Cherokee, Chester, Colleton, Dorchester, Greenville, Oconee, Pickens, and Saluda counties are filed with the Department and qualify for this tax relief.
END FOOTNOTES