What South Carolina tax relief applied to taxpayers affected by Hurricane Katrina under SC Information Letter #06-4?

Plain-English summary

South Carolina extended the same Hurricane Katrina tax relief that the IRS extended through August 28, 2006. IRS Notice 2006-20 applied to a return, tax payment, or tax deposit with an original or extended due date falling on or after August 29, 2005.

The federal notice gave automatic relief in the listed hardest-hit Louisiana parishes and Mississippi counties. Taxpayers in additional listed areas of Alabama, Louisiana, and Mississippi could receive relief by identifying themselves to the IRS.

South Carolina matched that relief and relief period for:

• individuals and businesses located in the covered areas;
• taxpayers with South Carolina businesses whose offices in those areas had hurricane-related operating disruptions;
• taxpayers whose tax records were in those areas;
• taxpayers whose returns were prepared by tax professionals in those areas; and
• relief workers.

The Department also said it would match any additional area or relief period later granted by the IRS.

What this means for you

A taxpayer relying on this historical relief was instructed to write "Hurricane Katrina" at the top of the return. A person or business that received a South Carolina penalty for a disaster-related late filing or payment was instructed to notify the Department so the penalty could be waived. The letter gave 803-898-5709 for relief questions.

Common questions

Q: What deadlines did the relief cover?
A: Covered returns, payments, and deposits with an original or extended due date on or after August 29, 2005, with the relief period extended through August 28, 2006.

Q: Did the South Carolina relief cover only taxpayers physically located in the disaster area?
A: No. It also covered specified businesses with disrupted offices there, taxpayers whose records or preparers were there, and relief workers.

Q: What if a taxpayer received a late penalty?
A: The letter says an affected taxpayer should notify the Department to obtain a waiver for qualifying late-filing or late-payment penalties.

Subject

Extended Tax Relief to Victims of Hurricane Katrina

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL06-4.pdf

Original ruling text

State of South Carolina

Department of Revenue
301 Gervais Street, P. O. Box 125, Columbia, South Carolina 29214
Website Address: http://www.sctax.org

SC INFORMATION LETTER #06-4

SUBJECT:

Extended Tax Relief to Victims of Hurricane Katrina

DATE:

March 1, 2006

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (2000)
SC Revenue Procedure #05-2

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.

In Notice 2006-20, the Internal Revenue Service extended until August 28, 2006 the
period for special tax relief for taxpayers in the counties and parishes most affected by
Hurricane Katrina and its aftermath. This applies to any return, tax payment or tax
deposit with an original or extended due date that fell on or after August 29, 2005.
The Service has indicated it will provide automatic relief to affected taxpayers in the
following parishes and counties:
•
•

Louisiana parishes of Cameron, Jefferson, Orleans, Plaquemines, St. Bernard, St.
Charles, and St. Tammany; and
Mississippi counties of Hancock, Harrison, and Jackson

In addition, the IRS determined that some affected taxpayers in other counties and
parishes in Alabama, Louisiana, and Mississippi may require additional disaster relief. In
the following counties and parishes, affected taxpayers can receive relief by identifying
themselves to the IRS:
•

Alabama parishes of Baldwin, Choctaw, Clarke, Greene, Hale, Marengo, Mobile,
Pickens, Sumter, Tuscaloosa, and Washington;

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•

Louisiana parishes of Acadia, Ascension, Assumption, Calcasieu, East Baton
Rouge, East Feliciana, Iberia, Iberville, Jefferson Davis, Lafayette, Lafourche,
Livingston, Pointe Coupee, St. Helena, St. James, St. John, St. Mary, St. Martin,
Tangipahoa, Terrebonne, Vermilion, Washington, West Baton Rouge, and West
Feliciana; and

•

Mississippi counties of Adams, Amite, Attala, Claiborne, Choctaw, Clarke,
Copiah, Covington, Franklin, Forrest, George, Greene, Hinds, Holmes,
Humphreys, Jasper, Jefferson, Jefferson Davis, Jones, Kemper, Lamar,
Lauderdale, Lawrence, Leake, Lincoln, Lowndes, Madison, Marion, Neshoba,
Newton, Noxubee, Oktibbeha, Pearl River, Perry, Pike, Rankin, Scott, Simpson,
Smith, Stone, Walthall, Warren, Wayne, Wilkinson, Winston, and Yazoo.

In response, the South Carolina Department of Revenue is also extending its tax relief to
provide the same relief to individuals and businesses located in these areas, taxpayers
who have businesses in South Carolina with offices in these areas whose operations have
been affected by the hurricane, those whose tax records are located in these areas, those
whose returns are prepared by tax professionals in these areas, and relief workers. The
Department will grant the same relief period granted by the Internal Revenue Service. If
the Internal Revenue Service grants relief to other areas affected by the hurricane or
grants an additional relief period, then the Department will grant the same relief and
period.
To qualify for this relief, affected taxpayers should write “Hurricane Katrina” at the top
of the return relying on this relief. Individuals or businesses located in these areas, or
taxpayers outside these areas that were directly affected by the disaster, should notify the
Department if they receive penalties for filing returns or paying taxes late for waiver of
these penalties. Taxpayers with relief questions should contact the Department at 803898-5709.

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