The SCDOR is committed to maximizing compliance through the fair administration of state tax laws. The easiest way for you to stay in compliance is to file your tax returns and pay any tax due by the due date.

Some common issues that cause people to be out of compliance include: 

• Not filing a required return
• Filing an incomplete or incorrect return
• Not paying the full amount of tax that is due
• Filing a return or making a payment after the due date
• Owing a debt to a qualifying government agency, which we collect through the Setoff Debt and GEAR programs

Resolving compliance issues 

We will send a detailed notice to taxpayers who are out of compliance.

Carefully read all notices you receive from the SCDOR as soon as possible. Most compliance issues can be resolved by following the directions on your notice. This usually involves filing all overdue returns and paying what you owe. You may be required to pay penalties and interest for failing to file and pay on time.

Learn more about SCDOR notices >

But when a compliance issue can’t be resolved quickly, we use a variety of collection activities to bring taxpayers back into compliance.

Voluntary collection options 

Taxpayers who can’t pay the amount they owe in one lump sum may have these options available to them.

Involuntary collection activities 

Taxpayers who ignore notices from the SCDOR or default on a Payment Plan Agreement may be subject to collection attempts from the SCDOR. 

Refund offset 

If you owe a tax debt, the SCDOR can claim any refund you are due until your debt is paid in full.

• When offsetting a refund, we will send a Notice of Refund Adjustment (I-351).
• If you're still due to receive a refund after the original amount was adjusted, you should receive your remaining refund within 8 weeks of filing your return.

Learn more about refund processing >

Levies 

The SCDOR can issue a levy against the wages or intangible assets of an individual taxpayer who is under an assessment, a tax lien, or both. A levy allows the SCDOR to legally seize a taxpayer’s assets.

• Wage Levies – When the SCDOR issues a wage levy against an individual, their employer must collect 25% of their gross wages and remit that amount to us.
  • When issuing a wage levy, we will send a Notice of Levy on Wages, Salary (AW-127) to the individual’s employer. The employer must provide a copy of the notice to the individual.
• Levy on Intangibles – The SCDOR can levy an individual’s bank accounts and certain investment accounts up to the total amount due.
  • When issuing a levy on intangibles, we will send a Notice of Levy on Intangibles (AW-104) to the individual being levied.

Learn more about levies >

Tax liens 

The SCDOR can issue a state tax lien, which is a claim against a taxpayer’s real or personal property located in South Carolina. We will not issue a lien until after the taxpayer’s ability to appeal the debt has passed.​

• When issuing a tax lien, we will send a Notice of State Tax Lien to Taxpayer (W-131-F) to the individual.
• How does a tax lien affect me? If you have a tax lien against your property, you cannot sell or refinance the property without satisfying the lien. All state tax liens are public information and are listed on the SCDOR’s State Tax Lien Registry.

Learn more about state tax liens >

License revocations 

As part of the collections process, the SCDOR can revoke any SCDOR-issued license, including your state Retail License and Alcohol Beverage Licenses.

• Once the SCDOR issues a revocation order, the business must stop operating immediately.
• Continuing to operate the business may result in arrest.
• The SCDOR may also assess civil penalties of $500 per day for each day of operation after revocation.
• Depending on your license type, we will revoke your license by sending the following notices:
  • ABL Notice Intent to Revoke (ABL-961)
  • Bingo Order of Revocation (L-2312)
  • Motor Fuel EP Revocation (L-2413)
  • Order of Revocation (ST-598)
  • Order of Revocation (ST-378)

 Learn more about Retail Licenses >

Learn more about operating a business with an ABL license > 

Setoff Debt and GEAR 

South Carolina law requires the SCDOR to help qualifying entities (known as claimant agencies) collect debts through the Setoff Debt and Governmental Enterprise Accounts Receivable (GEAR) programs.

Collecting debt:

• Claimant agencies must send a notification letter to debtors 30 days before submitting a debt to the SCDOR for collection through the Setoff Debt or GEAR program.
• If your debt is being collected through either of these programs, your tax refund may be used to offset what you owe. Debts collected through GEAR are also subject to levies.
• To protest a debt that is part of the Setoff Debt or GEAR program, you must contact the claimant agency.

Payment Plan Agreements:

• If you have a debt in the GEAR program, you may enter into a Payment Plan Agreement with the SCDOR.
• If you have a debt in the Setoff Debt program, you may not enter in a Payment Plan Agreement with the SCDOR.

Learn more about Setoff Debt and GEAR programs >

Private collection agencies

The SCDOR is authorized to refer outstanding debt to a private agency for collection. If your debt has been referred, you will receive a letter from Linebarger Goggan Blair & Sampson, LLP referencing your outstanding tax liability and providing payment instructions. If you have any questions about the legitimacy of this letter, please contact the SCDOR directly at 1-844-898-8542.

What's next? 

Learn more about important actions you can take during the collections process and once you've come into compliance.

Nee​​d more help​​​?

​Learn more about requesting a payment plan, and see the IRS and the SCDOR's​ tips and guidance on what to do if you can't afford to pay your taxes​.​​

Individual Income & GEAR Collections
CollectionSupport@dor.sc.gov 

Payment Plan
PPARequest@dor.sc.gov