Did South Carolina extend the 2020 individual income tax filing deadline to May 17, 2021, and what was South Carolina's IRC conformity status for 2020?

Plain-English summary

South Carolina pushed the 2020 individual income tax filing and payment deadline from April 15, 2021 to May 17, 2021, automatically, to match the IRS's COVID-19 relief. No form or phone call was needed to qualify.

Part I — filing and payment relief. Individuals could file their 2020 Form SC1040 (including SC1040 composite returns) and pay any South Carolina income tax originally due April 15, 2021 by May 17, 2021 without penalties or interest, regardless of the amount owed. The same May 17, 2021 date applied to:

• making 2020 contributions to South Carolina's Future Scholar 529 plan (or a rollover into it), IRAs and Roth IRAs, and health savings accounts; and
• filing a claim for credit or refund of South Carolina income tax that came due on or after April 15 and before May 17, 2021.

Important limit: the relief did not extend estimated tax payments due April 15, 2021.

Part II — Internal Revenue Code conformity (as of this letter). As of March 31, 2021, South Carolina conformed to the Internal Revenue Code as it existed on December 31, 2019 (Act No. 147 of 2020 amended § 12-6-40(A)(1)(a)) and had not adopted the federal CARES Act, the Taxpayer Certainty and Disaster Tax Relief Act of 2020, or the American Rescue Plan Act of 2021 (which excludes the first $10,200 of unemployment compensation for taxpayers under $150,000 AGI). The General Assembly was considering 2020 conformity legislation; if it adopted those federal Acts in the 2021 session, South Carolina would conform retroactively, and the Department said it would issue updated guidance.

What this means for you

For the 2020 tax year, the practical takeaway was the extra month to file and pay (to May 17, 2021) — but note that estimated payments still had their normal April 15 due date. On conformity, this letter is a snapshot in time: it tells you where South Carolina stood as of March 31, 2021, not the final answer. South Carolina later acted on 2020 conformity and adopted specific American Rescue Plan provisions — for example, the unemployment compensation exclusion in SC Information Letter #21-14 — so check the Department's later guidance for how a given federal provision was ultimately treated for 2020.

Common questions

Q: When were 2020 South Carolina individual income taxes due?
A: The deadline was automatically extended from April 15, 2021 to May 17, 2021, with no penalties or interest, regardless of the amount owed.

Q: Did the extension cover estimated tax payments?
A: No. Estimated tax payments due April 15, 2021 were not extended.

Q: Had South Carolina adopted the federal COVID-relief tax changes (CARES Act, American Rescue Plan) for 2020 when this letter issued?
A: Not yet. As of March 31, 2021, South Carolina conformed to the IRC as of December 31, 2019 and had not adopted those Acts; the Legislature was considering conformity and would apply it retroactively if adopted. See later Department guidance (e.g., SC Information Letter #21-14) for what was ultimately adopted.

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL21-7.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE

300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 125, Columbia, South Carolina 29214-0575

SC INFORMATION LETTER #21-7
SUBJECT:

Individual Income Tax Relief – Tax Year 2020 and
South Carolina Internal Revenue Code Tax Conformity Update
(Individual Income Taxes)

DATE:

March 31, 2021

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.

Part I - Individual Income Tax Relief for Tax Year 2020:
Internal Revenue Individual Income Tax Relief. On March 17 and 29, 2021, the Internal
Revenue Service announced special individual income tax filing and payment relief for Form
1040 filers affected by the ongoing COVID-19 pandemic. The tax relief automatically extends
until May 17, 2021 the following:

1. The due date for filing Federal individual income tax returns and income tax payments for
   the 2020 tax year that are originally due on April 15, 2021.
2. The time for affected taxpayers to make 2020 contributions to their individual retirement
   arrangements (IRAs and Roth IRAs), health savings accounts, Archer Medical Savings
   Accounts, and Coverdell education savings accounts.
3. The time for individuals with a period of limitations to file a claim for credit or refund of
   Federal income tax expiring on or after April 15, 2021, and before May 17, 2021 to file those
   claims for credit or refund. This postponement is limited to claims for credit or refund
   properly filed on the Form 1040 series or on a Form 1040-X.

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Note: The Federal tax relief does not apply to:

1. Estimated tax payments that are due on April 15, 2021.
2. Businesses and any other type of taxpayer who file Federal income tax returns on forms
   outside of the Form 1040 series.
   See Internal Revenue Service Information Release 2021-59 and Notice 2021-21 attached for
   more information.
   South Carolina Department of Revenue Individual Income Tax Relief. In response to the
   tax relief provided by the Internal Revenue Service, the Department is providing the same tax
   filing and payment relief granted by the Internal Revenue Service for individual income tax
   returns originally due April 15, 2021. 1
   Accordingly, taxpayers will have until May 17, 2021 to perform the following:
3. File their 2020 South Carolina individual income tax returns (i.e., Form SC 1040 or SC 1040
   composite individual income tax return 2) and make South Carolina income tax payments in
   connection with these returns originally due on April 15, 2021, without penalties and interest,
   regardless of the amount owed.
   Note: This relief is automatic. Individual taxpayers do not need to file any forms or call the
   Department to qualify for this South Carolina tax filing and payment relief.
4. Make a 2020 contribution to the South Carolina College Investment Program (commonly
   known as Future Scholar, South Carolina’s 529 College Savings Plan) 3 or rollover from
   another qualified 529 plan to the South Carolina College Investment Program, 4 or make a
   2020 contribution to individual retirement arrangements (IRAs and Roth IRAs) and health
   savings accounts as specified by the Internal Revenue Service.
5. File a claim for credit or refund of South Carolina individual income tax that was due to be
   filed on or after April 15, 2021, and before May 17, 2021. 5

Code Section 12-4-320(6).
A composite return is filed on a “modified” Form SC 1040 and allows an S-corporation or partnership to compute
and report the South Carolina income and tax attributable to two or more nonresident shareholders or partners on a
single tax return. The taxpayer name, address, and identifying number used on the SC 1040 composite return should
be the S-corporation’s or partnership’s. See Code Section 12-6-5030.
3
South Carolina’s 529 plan is administered by the State Treasurer’s Office as provided for in Title 59, Chapter 2.
4
See Code Sections 12-6-1140(11) and 59-2-80. Code Section 59-2-80(D) provides the tax deduction may be taken
in any tax year for contributions and rollovers made during that tax year, and up to April 15th of the succeeding year,
or the due date of a taxpayer’s state income tax return excluding extensions, whichever is longer.
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See Code Section 12-54-85 for the statutory time limitation for filing claims for refunds and SC Revenue Ruling

13-1 for general rules for limitation on filing a claim for refund.

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Note: The South Carolina tax relief does not apply to:

1. Estimated tax payments that are due on April 15, 2021.
2. Other South Carolina tax returns originally due April 15, 2021, including trust and estate
   returns filed on a SC 1041, C corporation returns filed on a SC 1120, and bank tax returns
   filed on a SC 1101B.
   Additional Extension of Time to File Individual Income Tax Returns beyond May 17, 2021.
   Individual taxpayers who need additional time to file beyond the May 17, 2021 deadline can
   request an extension of time to file on or before May 17, 2021, which will be effective until
   October 15, 2021. The extension will not extend the time to pay South Carolina individual
   income tax beyond May 17, 2021.
   If the taxpayer files an extension with the Internal Revenue Service, then the Department accepts
   the federal extension and will grant an automatic extension of time to file the South Carolina
   return. In such instance, a separate South Carolina extension (Form SC 4868, “Request for
   Extension of Time to File South Carolina Individual Income Tax Return”) needs to be filed only
   if the taxpayer is required to make a South Carolina tax payment with the extension.

Part II - South Carolina Internal Revenue Code Conformity Update and
Individual Filing Information for Tax Year 2020:
South Carolina Internal Revenue Code Conformity. To date, South Carolina has conformed
to the Internal Revenue Code as of December 31, 2019. During the 2020 Legislative Session, the
General Assembly enacted Act No. 147 to amend Code Section 12-6-40(A)(1)(a) to conform to
the Internal Revenue Code as of December 31, 2019, but did not adopt the federal Coronavirus
Aid, Relief, and Economic Security Act (CARES Act). 6 After the General Assembly adjourned
in September 2020, Congress passed the Taxpayer Certainty and Disaster Tax Relief Act of
2020 7 and the American Rescue Plan Act of 2021 8 (which excludes from Federal taxable income
the first $10,200 of unemployment compensation for those taxpayers with less than $150,000 in
adjusted gross income) 9.
Currently, the General Assembly is considering legislation to address Internal Revenue Code
conformity for 2020 along with adoption of specific tax provisions enacted in March 2021 by
Congress in the American Rescue Plan Act. If the General Assembly conforms to these Federal
Acts in the 2021 Legislative Session, South Carolina would retroactively conform. The
Department will issue updated guidance once the General Assembly finalizes its adoption of
specific tax provisions. If you would like to receive notice of future Federal conformity or
Policy updates, sign up on the Policy Division’s web page at dor.sc.gov/policy/index.

Public Law 116-136, March 27, 2020.
Public Law 116-260, Div. EE, December 27, 2020. This Act is part of the Consolidated Appropriations Act of 2021.
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Public Law 117-2, March 11, 2021.
9
Currently, unemployment income is taxable for South Carolina income tax purposes. See Code Sections 12-6-50
and 41-39-40(A), and Internal Revenue Code Section 85(a).
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Part III - Administrative, Procedural, and Miscellaneous

RELIEF FOR FORM 1040 FILERS AFFECTED BY ONGOING CORONAVIRUS
DISEASE 2019 PANDEMIC

Notice 2021-21

I. PURPOSE
On March 13, 2020, the President of the United States issued an emergency
declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act
in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic
(Emergency Declaration). The Emergency Declaration instructed the Secretary of the
Treasury “to provide relief from tax deadlines to Americans who have been adversely
affected by the COVID-19 emergency, as appropriate, pursuant to 26 U.S.C. 7508A(a).”
Pursuant to the Emergency Declaration, this notice provides relief under section 7508A
of the Internal Revenue Code (Code) for the persons described in section III.A of this
notice that the Secretary of the Treasury has determined to be affected by the COVID19 emergency.
II. BACKGROUND
Section 7508A provides the Secretary of the Treasury or her delegate
(Secretary) with authority to postpone the time for performing certain acts under the
internal revenue laws for a taxpayer determined by the Secretary to be affected by a
Federally declared disaster as defined in section 165(i)(5)(A) of the Code. Pursuant to

section 7508A(a), a period of up to one year may be disregarded in determining
whether the performance of certain acts is timely under the internal revenue laws.
III. GRANT OF RELIEF
A. Taxpayers Affected by COVID-19 Emergency
The Secretary has determined that any person with a Federal income tax return
filed on Form 1040, Form 1040-SR, Form 1040-NR, Form 1040-PR, Form 1040-SS, or
Form 1040(SP) (Form 1040 series), or a Federal income tax payment reported on one
of these forms, that absent this notice would be due April 15, 2021, is affected by the
COVID-19 emergency for purposes of the relief described in this section III (Affected
Taxpayer). In addition, persons who are required to file and furnish Form 5498, IRA
Contribution Information, Form 5498-ESA, Coverdell ESA Contribution Information, and
Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information (Form
5498 series) that absent this notice would generally be due June 1, 2021, are Affected
Taxpayers.
The Secretary has also determined that any individual with a period of limitations
to file a claim for credit or refund of Federal income tax that absent this notice would
expire on or after April 15, 2021, and before May 17, 2021 (for example, certain
individual taxpayers with claims for credit or refund in respect of their 2017 taxable
years), is an Affected Taxpayer.
B. Postponement of Due Dates with Respect to Certain Federal Tax
Returns and Federal Tax Payments
For an Affected Taxpayer, the due date for filing Federal income tax returns in
the Form 1040 series and making Federal income tax payments in connection with one

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of these forms having an original due date of April 15, 2021, is automatically postponed
to May 17, 2021. Affected Taxpayers do not have to file any form, including Form 4868,
Application for Automatic Extension of Time to File U.S. Individual Income Tax Return,
to obtain this relief. This relief includes the filing of all schedules, returns, and other
forms that are filed as attachments to the Form 1040 series or are required to be filed by
the due date of the Form 1040 series, including, for example, Schedule H and Schedule
SE, as well as Forms 965-A, 3520, 5329, 5471, 8621, 8858, 8865, 8915-E, and 8938.
Finally, elections that are made or required to be made on a timely filed Form 1040
series (or attachment to such form) will be timely made if filed on such form or
attachment, as appropriate, on or before May 17, 2021.
As a result of the postponement of the due date for Affected Taxpayers to file
Federal income tax returns and make Federal income tax payments from April 15, 2021,
to May 17, 2021, the period beginning on April 15, 2021, and ending on May 17, 2021,
will be disregarded in the calculation of any interest, penalty, or addition to tax for failure
to file the Federal income tax returns or to pay the Federal income taxes postponed by
this notice. Interest, penalties, and additions to tax with respect to such postponed
Federal income tax filings and payments will begin to accrue on May 18, 2021.
The postponement of the due date for filing these Federal income tax returns to
May 17, 2021, also automatically postpones to the same date the time for Affected
Taxpayers to make 2020 contributions to their individual retirement arrangements (IRAs
and Roth IRAs), health savings accounts (HSAs), Archer Medical Savings Accounts
(Archer MSAs), and Coverdell education savings accounts (Coverdell ESAs). This
postponement also automatically postpones to May 17, 2021, the time for reporting and

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payment of the 10-percent additional tax on amounts includible in gross income from
2020 distributions from IRAs or workplace-based retirement plans.
Forms in the Form 5498 series must be filed with the IRS and furnished to
participants and beneficiaries by the due date specified in General Instructions for
Certain Information Returns (Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, and W2G). Because filers of Form 5498 series are Affected Taxpayers, the due date for filing
and furnishing the Form 5498 series is postponed to June 30, 2021. The period
beginning on the original due date of those forms and ending on June 30, 2021, will be
disregarded in the calculation of any penalty for failure to file those forms. Penalties
with respect to such a postponed filing will begin to accrue on July 1, 2021.
The relief provided in this section III.B for filing Federal income tax returns and
paying Federal income taxes is available solely with respect to the Form 1040 series
returns having an original due date of April 15, 2021, in respect of an Affected
Taxpayer's 2020 taxable year, and the Form 5498 series returns that are due as
described above. Businesses and any other type of taxpayer who file Federal income
tax returns on forms outside of the Form 1040 series are not Affected Taxpayers for
purposes of the relief described in this section III.B.
No extension is provided in this notice for the payment or deposit of any other
type of Federal tax, including Federal estimated income tax payments, or for the filing of
any Federal return other than the Form 1040 series and the Form 5498 series for the
2020 taxable year.

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C. Relief with Respect to Certain Claims for Refund
Individuals with a period of limitations to file a claim for credit or refund of Federal
income tax expiring on or after April 15, 2021, and before May 17, 2021, have until May
17, 2021, to file those claims for credit or refund. This postponement is limited to claims
for credit or refund properly filed on the Form 1040 series or on a Form 1040-X.
As a result of the postponement of the time for individuals to file claims for credit
or refund of Federal income tax where the period to file that claim expires on or after
April 15, 2021, and before May 17, 2021, the period beginning on April 15, 2021, and
ending on May 17, 2021, will be disregarded in determining whether the filing of those
claims is timely.
IV. EXTENSION OF TIME TO PARTICIPATE IN THE ANNUAL FILING SEASON
PROGRAM
Revenue Procedure 2014-42, 2014-29 IRB 192, created a voluntary Annual
Filing Season Program to encourage tax return preparers who do not have credentials
as practitioners under Treasury Department Circular No. 230 (Regulations Governing
Practice before the Internal Revenue Service) to complete continuing education courses
for the purpose of increasing their knowledge of the law relevant to Federal tax returns.
Tax return preparers who complete the requirements in Rev. Proc. 2014-42 receive an
annual Record of Completion. Under Rev. Proc. 2014-42, applications to participate in
the Annual Filing Season Program for the 2021 calendar year must be received by April
15, 2021. In light of the relief granted in section III of this notice, the 2021 calendar year
application deadline is postponed to May 17, 2021.

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V. CONTACT INFORMATION
The principal author of this notice is Jennifer Auchterlonie of the Office of
Associate Chief Counsel, Procedure and Administration. For further information
regarding this notice, you may call (202) 317-5436 (not a toll-free call).

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