S 0347 General Bill, By Branton, Leatherman, McConnell, Peeler, Mescher, Grooms, 
Bauer, Ryberg, Wilson, Waldrep and Verdin
 A BILL TO AMEND SECTION 12-54-85, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
 1976, RELATING TO TIME LIMITATIONS ON ASSESSMENT OF TAXES AND FEES AND CLAIMS
 FOR CREDIT OR REFUND, SO AS TO EXTEND THE PERIOD IN WHICH A CLAIM FOR CREDIT
 OR REFUND IS CONSIDERED TIMELY FILED FROM THREE YEARS TO FIVE YEARS AFTER THE
 RETURN WAS FILED OR FROM TWO YEARS TO FIVE YEARS FROM THE DATE OF PAYMENT,
 WHICHEVER IS LATER AND TO MAKE CONFORMING AMENDMENTS.

   02/20/01  Senate Introduced and read first time SJ-2
   02/20/01  Senate Referred to Committee on Finance SJ-2

TO AMEND SECTION 12-54-85, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TIME LIMITATIONS ON ASSESSMENT OF TAXES AND FEES AND CLAIMS FOR CREDIT OR REFUND, SO AS TO EXTEND THE PERIOD IN WHICH A CLAIM FOR CREDIT OR REFUND IS CONSIDERED TIMELY FILED FROM THREE YEARS TO FIVE YEARS AFTER THE RETURN WAS FILED OR FROM TWO YEARS TO FIVE YEARS FROM THE DATE OF PAYMENT, WHICHEVER IS LATER AND TO MAKE CONFORMING AMENDMENTS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 12-54-85(F) of the 1976 Code is amended to read:

"(F)(1)Except as provided in subsection (D) above, claims for credit or refund must be filed within three five years of the time the timely filed return, including extensions, was filed, or two five years from the date of payment, whichever is later. If no return was filed, a claim for refund must be filed within two five years from the date of payment.

(2) If the claim was filed by the taxpayer during the three-year five-year period prescribed in item (1), the amount of the credit or refund may not exceed the portion of the tax paid within the period, immediately preceding the filing of the claim, equal to three five years plus the period of any extension of time for filing the return.

(3) If the claim was not filed within the three-year five-year period, the amount of the credit or refund may not exceed the portion of the tax paid during the two five years immediately preceding the filing of the claim.

(4) If no claim was filed, the credit or refund may not exceed the amount which would be allowable under item (2) or (3), as the case may be, as if a claim were filed on the date the credit or refund is allowed.

(5) For the purposes of this subsection:

(a) A return filed before the last day prescribed for the filing is considered as filed on the last day. Payment of any portion of the tax made before the last day prescribed for the payment of the tax is considered made on the last day. The last day prescribed for filing the return or paying the tax must be determined without regard to any extension of time.

(b) Any tax actually withheld at the source in respect of the recipient of income, is considered to have been paid by the recipient on the last day prescribed for filing his return for the taxable year, determined without regard to any extension of time for filing the return, with respect to which the taxpayer would be allowed a credit for the amount withheld.

(c) Any amount paid as estimated income tax for any taxable year is considered to have been paid on the last day prescribed for filing the return for the taxable year, determined without regard to any extension of time for filing the return."

SECTION 2. This act takes effect upon approval by the Governor.