South Carolina tax payment plan through the SCDOR
The South Carolina name is Payment Plan Agreement, the SCDOR manages setup through MyDORWAY. Each agreement includes a $45 fee with no refund.
- Plan fee
- No refunds; the fee is $45
- How long the plan lasts
- Between 12 and 48 months
- Down payment without a draft
- Payment equal to 20% of the balance
- Wage levy
- 25% of gross pay
A quick look at the SCDOR plan
Each Payment Plan Agreement in South Carolina includes a $45 fee, which South Carolina does not refund. Your total balance determines the payment period, according to the SCDOR plan details. The term may range between 12 months and 48 months.
Payments are taken directly from your bank account through automatic drafts. If you do not allow drafts, you must first pay 20% of the full balance. GEAR debts follow somewhat different rules. Money that other state agencies are owed is gathered by the SCDOR under GEAR (Governmental Enterprise Accounts Receivable). These plans have no fee, but they require a 10% down payment.
Can I get a payment plan if my wages are already levied?
No. An active levy or garnishment by the SCDOR against you prevents an agreement request. By law, a levy takes money, such as from a paycheck or bank balance. Setoff Debt program debts are also excluded, while GEAR debts may be placed on a plan.
You must also list a checking or savings account on your request. The SCDOR recommends checking bank loan rates first because they may be lower than the state’s rate.
Applying for a Payment Plan Agreement
Individuals request a plan through MyDORWAY, the free SCDOR tax portal. Businesses may use MyDORWAY, visit an SCDOR office or work with their assigned Revenue Officer. To add a newer bill to your existing plan, send Form FS-147. You may do this only once during the plan.
After approval, property is not seized by the SCDOR during the plan unless you default or the agency finds collection is in jeopardy. Refunds from state or federal government and winnings from the SC Education Lottery are still kept by the state and put toward your debt. These amounts do not count as a monthly payment. The state may also file a public tax lien, which can appear on your credit report.
What counts as a default
Your plan ends if you miss a scheduled payment or your bank returns a draft. It also ends if you do not file and pay new returns in full, including estimated tax. After a default, the SCDOR says it must begin legal action immediately to collect the debt. The SCDOR may also review your finances while the plan is active and ask for updated information.
Collection steps if no payment is made
The SCDOR collection guide explains what follows when notices are ignored or a plan fails:
- Refund offset: the state holds back your refund until that debt is cleared
- Your employer sends 25% of your gross pay to the SCDOR under a wage levy.
- The state can levy bank accounts and some investment accounts
- The state tax lien against your property in South Carolina appears in a public registry.
- If you operate after losing a retail license or another SCDOR license, you face $500 a day in penalties.
- Referral to the private collection firm Linebarger Goggan Blair & Sampson
Relief, penalties, interest and the IRS
Under South Carolina Code section 12-54-25, interest continues until the tax is paid in full. The state uses the same method for setting this rate as the federal government uses for its underpayment rate. Under Section 12-54-43, late payment carries a monthly penalty of 0.5%, with a limit of 25%.
Each penalty waiver request is decided separately and interest is never waived. Approval for a debt already in collections depends on paying the full amount within 30 days. Via the Taxpayer Advocate, the SCDOR accepts certain Offers in Compromise. You make one payment below the full debt.
Your IRS bill requires a separate federal plan. Plan for two monthly payments, one drafted by the SCDOR and the other paid to the IRS.
Nearby states
Do you owe money to SCDOR and the IRS?
Are you dealing with an SCDOR Payment Plan Agreement and an IRS balance together? Both monthly payments can be matched to your actual earnings by a licensed tax pro during a free call.
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