Tax Audit Protest and Appeal — South Carolina

Tax Audit Protest and Appeal (SOUTH CAROLINA)

Quick-Reference Summary

Part A — Informal Conference Request Letter

[LAW FIRM / TAXPAYER LETTERHEAD]
[Street Address]
[City, SC ZIP]
Telephone: [____________]
Email: [____________]
SC Bar No.: [____________]

Date: [__/__/____]

Via Email and U.S. Mail

[Auditor Name], Revenue Officer
South Carolina Department of Revenue
[Address]
Email: [auditor email]

RE: Request for Informal Audit Conference Before Issuance of Proposed Assessment
Taxpayer: [TAXPAYER NAME]
SC File / Account No.: [____________]
Audit / Case No.: [____________]
Tax Type / Periods: [Individual / Corporate / Sales / Use / Withholding] — [YYYY]–[YYYY]

Dear [Auditor Name]:

This office represents the above-referenced Taxpayer in the pending South Carolina Department of Revenue audit. Pursuant to SCDOR audit practice and prior to issuance of any Proposed Assessment under S.C. Code Ann. § 12-60-440 et seq., Taxpayer respectfully requests an informal audit conference with the audit team and your supervisor to discuss the proposed adjustments described in the [Notice of Proposed Adjustment / 30-day letter / Audit Workpapers] dated [__/__/____].

1. Issues Proposed for Discussion

2. Documents Submitted Herewith

• [List exhibits — invoices, contracts, federal returns, apportionment schedules, SCDOR Revenue Rulings and Advisory Opinions]

3. Outcome Requested

Taxpayer requests reconsideration of the proposed adjustments in light of the enclosed documentation and South Carolina law. If a Proposed Assessment is nevertheless issued, Taxpayer reserves all rights under S.C. Code Ann. § 12-60-450 to file a timely written protest within 90 days of the date of the proposed assessment.

Please confirm a date for the conference. We are available [propose dates]. This letter is submitted without waiver of any rights.

Respectfully,

[ATTORNEY NAME]
SC Bar No. [____________]

Part B — Formal Protest / Petition

Part B-1 — Written Protest to SCDOR under S.C. Code Ann. § 12-60-450

[LAW FIRM / TAXPAYER LETTERHEAD]

Date: [__/__/____]

Via Certified Mail — Return Receipt Requested
and Via SCDOR Secure Upload (MyDORWAY)

South Carolina Department of Revenue
Office of General Counsel
Attn: [Reviewer / Section named on Notice]
P.O. Box 12265
Columbia, SC 29211

RE: WRITTEN PROTEST OF PROPOSED ASSESSMENT — S.C. Code Ann. § 12-60-450; SC Revenue Procedure #20-1

1. Statement of Protest

Pursuant to S.C. Code Ann. § 12-60-450(A) and SC Revenue Procedure #20-1, Taxpayer [NAME] hereby protests the above-referenced [Proposed Assessment / Division Decision] in whole [or in part as to the issues itemized in Section 3] and requests that the Department withdraw the assessment or issue a Department Determination accordingly. Taxpayer further requests a conference under the Department's internal appeals procedure.

2. Timeliness

The proposed assessment is dated [__/__/____]. This protest is filed on [FILING DATE], within ninety (90) calendar days as required by § 12-60-450(A) and per § 12-60-50.

3. Itemized Schedule of Disputed Adjustments

4. Statement of Facts

[Detailed chronology — entity formation, business operations, return filings, audit history, IDR responses, dates of communications.]

5. Statement of Applicable Law

5.1. Title 12 of the South Carolina Code. [Cite controlling statutes — e.g., § 12-6-510 (income tax rates); § 12-6-2295 (sales factor); § 12-36-910 (sales tax base).]

5.2. SCDOR Revenue Rulings / Advisory Opinions. [Cite Revenue Rulings, Information Letters, Private Letter Rulings.]

5.3. Controlling Case Law. [Cite SC Supreme Court and Court of Appeals authority; ALC opinions.]

6. Statement of Authority Supporting Taxpayer's Position

Taxpayer asserts the following independent grounds, in the alternative and without waiver:

6.1. Erroneous Application of S.C. Code. [Explain.]

6.2. Conflict with SCDOR Published Guidance. [Cite.]

6.3. Statute of Limitations. § 12-54-85. [Apply to facts.]

6.4. Constitutional Defenses (if applicable). Commerce Clause (Wayfair / Complete Auto); Due Process; P.L. 86-272.

6.5. Penalty Abatement — Reasonable Cause. § 12-54-160; § 12-54-195.

6.6. Refund Entitlement (if applicable). § 12-60-470; § 12-54-85.

7. Requested Relief

a. Withdrawal of the proposed assessment in full [or as to issues specified];
b. Abatement of all tax, interest, and penalty;
c. [If refund:] Allow refund with interest under § 12-54-25;
d. Penalty abatement for reasonable cause;
e. Department Determination addressing each issue raised.

8. Conference Request

Taxpayer respectfully requests a conference with the Office of General Counsel and audit staff to discuss this protest. Available dates: [____________]. Taxpayer's authorized representative is [ATTORNEY], SC Bar No. [___], contact information above. Form SC2848 (Power of Attorney) is enclosed.

9. Reservation of Rights

Taxpayer reserves the right to (a) supplement this protest with additional documentation; (b) request a contested case hearing before the Administrative Law Court within 30 days of any Department Determination; and (c) raise any defense not specifically itemized herein, while acknowledging the exhaustion requirement of § 12-60-30(15).

Respectfully submitted,

_________________________________
[TAXPAYER / OFFICER NAME]
Title: [____________]

_________________________________
[ATTORNEY NAME], Counsel for Taxpayer
SC Bar No. [____________]
[Firm / Address / Phone / Email]

Enclosures: Proposed Assessment; Form SC2848 POA; Exhibits A–[__].

Part B-2 — Request for Contested Case Hearing before the Administrative Law Court (§ 12-60-460)

STATE OF SOUTH CAROLINA
ADMINISTRATIVE LAW COURT

Docket No.: [TO BE ASSIGNED]

REQUEST FOR CONTESTED CASE HEARING

Petitioner [TAXPAYER NAME], by counsel, pursuant to S.C. Code Ann. §§ 12-60-460, 1-23-310, and 1-23-600, and the SC ALC Rules of Procedure, hereby requests a contested case hearing on the Department Determination identified below.

1. Identification of Department Determination

2. Timeliness

This Request is filed on [__/__/____], within thirty (30) calendar days of the Department Determination dated [__/__/____], as required by § 12-60-460 and per § 12-60-50.

3. Exhaustion of Prehearing Remedy

Petitioner has satisfied the exhaustion requirement of § 12-60-30(15) by (a) timely filing a written protest dated [__/__/____]; (b) [attending a conference / submitting briefing] in the prehearing process; and (c) providing the facts, law, and authority supporting Petitioner's position.

4. Issues for Contested Case Hearing

[Same itemized schedule as Part B-1 Section 3 — adjusted to issues remaining after Department Determination.]

5. Statement of the Case

[Concise statement of facts and grounds; incorporates by reference the prior written protest and exhibits.]

6. Relief Requested

WHEREFORE, Petitioner respectfully requests that the Court:

a. Reverse the Department Determination;
b. Cancel all assessed tax, interest, and penalty;
c. [If refund:] Order refund with interest under § 12-54-25;
d. Award costs as permitted by law;
e. Grant such other relief as the Court deems just.

7. Filing Fee

Filing fee of $25 is enclosed (check payable to "SC Administrative Law Court").

Respectfully submitted,

_________________________________
[ATTORNEY NAME]
SC Bar No. [____________]
[Firm / Address / Phone / Email]
Attorney for Petitioner [TAXPAYER NAME]

CERTIFICATE OF SERVICE

I certify that on [__/__/____] I served the foregoing on the South Carolina Department of Revenue, Office of General Counsel, P.O. Box 12265, Columbia, SC 29211, by [certified mail / personal service / ALC e-filing].

_________________________________

Part C — Appeal Cover Letter to Tax Tribunal / Court

[LAW FIRM LETTERHEAD]

Date: [__/__/____]

Via Hand Delivery / E-Filing

Clerk of the Court
South Carolina Administrative Law Court
1205 Pendleton St., Suite 224
Columbia, SC 29201
Phone: 803-734-0550
Website: https://www.scalc.net

RE: Filing of Request for Contested Case Hearing
Petitioner: [TAXPAYER NAME]
Department Determination Date: [__/__/____]
Tax Type / Periods: [____________]
Amount in Controversy: $[____________]

Dear Clerk:

Enclosed for filing please find:

This Request is timely filed within 30 days of the Department Determination, in accordance with S.C. Code Ann. § 12-60-460.

Please assign a docket number and confirm receipt.

Respectfully,

[ATTORNEY NAME]
SC Bar No. [____________]

cc: SCDOR Office of General Counsel (with copy of Request — certified mail)
SC Attorney General — Revenue & Civil Division

Part D — Pre-Filing Checklist

During Audit

• ☐ Issue litigation hold; preserve books and records.
• ☐ File SC Form SC2848 Power of Attorney.
• ☐ Reconcile federal return to SC return; identify all add-backs/subtractions.
• ☐ Track all IDRs and responses.
• ☐ Calendar SC federal-change reporting deadline (180 days).
• ☐ Request informal audit conference / supervisor review before proposed assessment.

Proposed Assessment / Division Decision Received

• ☐ Identify and docket the DATE on the face of the notice.
• ☐ Calendar DAY 90 (protest deadline under § 12-60-450).
• ☐ Verify weekend/holiday rollover under § 12-60-50.
• ☐ Identify the assigned auditor/section/legal contact.
• ☐ Determine whether to (a) protest, or (b) pay-and-claim-refund under § 12-60-470.
• ☐ Calendar SOL on assessment (§ 12-54-85) — was assessment within SOL?

Protest Preparation (90-Day Window)

• ☐ Draft itemized schedule of disputed adjustments.
• ☐ Statement of facts (chronology of audit).
• ☐ Statement of applicable law (Title 12, Revenue Rulings, ALC opinions).
• ☐ Statement of authority supporting taxpayer's position.
• ☐ SOL defense if applicable (§ 12-54-85).
• ☐ Constitutional defenses (Commerce Clause, P.L. 86-272).
• ☐ Penalty abatement — reasonable cause (§ 12-54-160; § 12-54-195).
• ☐ PUT EVERYTHING IN — exhaustion requirement of § 12-60-30(15).
• ☐ Compile exhibits (Bates-stamped, indexed).

Protest Filing

• ☐ File via certified mail AND MyDORWAY secure upload.
• ☐ Retain certified-mail receipt and DOR file-stamp.
• ☐ Calendar DOR response timeline (no fixed statutory deadline).
• ☐ Request conference.

Department Determination Received

• ☐ Identify date of Determination on face of document.
• ☐ Calendar DAY 30 to file Request for Contested Case Hearing with ALC under § 12-60-460.
• ☐ Calendar internal cushion at Day 25.

ALC Contested Case Filing

• ☐ Draft Request for Contested Case Hearing.
• ☐ Confirm exhaustion satisfied — protest filed; conference attended; facts/law/authority submitted.
• ☐ Pay $25 filing fee.
• ☐ Serve SCDOR Office of General Counsel.
• ☐ File with ALC (in person, mail, or e-filing per ALC Rules).
• ☐ Calendar SCDOR's Answer deadline (under ALC Rules).

ALC Discovery and Hearing

• ☐ Comply with ALC Rules of Procedure and SCRCP.
• ☐ Prepare witness/exhibit lists.
• ☐ Prehearing statement and proposed findings.
• ☐ Comply with scheduling order.

After ALC Decision

• ☐ Calendar deadline to file Notice of Appeal with SC Court of Appeals (30 days under SCACR 203).
• ☐ Consider request for reconsideration under ALC Rules.

Refund Track (Alternative under § 12-60-470)

• ☐ Pay tax in full.
• ☐ File refund claim within 3 years of filing or 2 years of payment, whichever later.
• ☐ If refund denied, follow same protest → Department Determination → ALC track.

Property Tax Track (Reference — Different Procedure)

• ☐ County board of assessment appeals first; then ALC.
• ☐ Subarticle 9, Article 9 of § 12-60.
• ☐ Pay tax to preserve appeal under § 12-60-2510.

Sources and References

• S.C. Code Title 12, Chapter 60 (Revenue Procedures Act): https://www.scstatehouse.gov/code/t12c060.php
• S.C. Code § 12-60-450 (Appeal of Division Decision / Assessment): https://law.justia.com/codes/south-carolina/title-12/chapter-60/section-12-60-450/
• S.C. Code § 12-60-460 (Contested Case Hearing): https://law.justia.com/codes/south-carolina/title-12/chapter-60/section-12-60-460/
• S.C. Code § 12-60-470 (Refund Claims): https://law.justia.com/codes/south-carolina/title-12/chapter-60/section-12-60-470/
• S.C. Code § 12-54-85 (SOL on Assessment): https://law.justia.com/codes/south-carolina/title-12/chapter-54/section-12-54-85/
• SC Revenue Procedure #20-1 (Tax Appeals Process): https://dor.sc.gov/policy
• SC Revenue Procedure #20-3 (Regulatory Appeals Process): https://www.dor.sc.gov/administrative-process-procedures-department-revenue-internal-regulatory-appeals-process-and-procedures
• SCDOR — Audits and Appeals: https://dor.sc.gov/audit-appeals
• South Carolina Administrative Law Court: https://www.scalc.net
• SC ALC Rules of Procedure: https://www.scalc.net/Rules.aspx
• SC Administrative Procedures Act (§ 1-23-310 et seq.): https://www.scstatehouse.gov/code/t01c023.php
• MyDORWAY (SCDOR Online Portal): https://mydorway.dor.sc.gov