S 342 Session 112 (1997-1998)
S 0342 General Bill, By Leatherman
A BILL TO AMEND SECTION 12-54-85, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
1976, RELATING TO TIME LIMITS FOR ASSESSMENT OF TAXES, SO AS TO DELETE
REFERENCES TO FEES AND TO CLARIFY THE TIME LIMIT FOR FILING A CLAIM FOR CREDIT
OR REFUND.
02/11/97 Senate Introduced and read first time SJ-10
02/11/97 Senate Referred to Committee on Finance SJ-10
A BILL
TO AMEND SECTION 12-54-85, AS AMENDED, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO TIME
LIMITS FOR ASSESSMENT OF TAXES, SO AS TO DELETE
REFERENCES TO FEES AND TO CLARIFY THE TIME LIMIT
FOR FILING A CLAIM FOR CREDIT OR REFUND.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 12-54-85(A), (B), (C), and (F) of the 1976
Code, as last amended by Act 456 of 1996, is further amended to
read:
"(A) Except as otherwise provided in this section, the amount
of taxes or fees due under laws administered by the
department must be determined and assessed within thirty-six
months from the date the return or document was filed or due to be
filed, whichever is later.
(B) Except as otherwise provided in this section, if the tax or
fee is not required to be remitted with a return or document, the
amount of taxes or fees due the State of South Carolina under
laws administered by the department must be determined and
assessed within thirty-six months after the date on which any part of
the tax or fee was paid.
(C) The department Taxes may be
determine determined and assess taxes and
fees after the thirty-six month limitation if:
(1) in the case of income, estate and generation skipping
transfer taxes, the taxes are assessed within one hundred eighty days
of receiving notice from the Internal Revenue Service of a final
determination of a tax adjustment made by the Internal Revenue
Service.;
(2) there is fraudulent intent to evade the taxes or
fees.;
(3) the taxpayer failed to file a return or document as required
by law.;
(4) there is a twenty percent understatement of the total taxes
and fees required to be shown on the return or document. The
taxes or fees in this case may be assessed at any time within
seventy-two months from the date the return or document was filed
or due to be filed, whichever is later.:
(5) the person liable for any taxes or fees administered by
the department consents in writing, before the expiration of the
time prescribed in this section for assessing taxes or fees due,
to the assessment of the taxes or fees after the time prescribed
by this section.
(F)(1) Except as provided in subsection (D) above, claims for
credit or refund must be filed within three years of the time the
timely filed return, including extensions, was filed,
or two years from the date of payment, whichever is later. If no
return was filed, a claim for refund must be filed within two years
from the date of payment.
(2) If the claim was filed by the taxpayer during the three-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 years plus the period
of any extension of time for filing the return.
(3) If the claim was not filed within the three-year period, the
amount of the credit or refund may not exceed the portion of the tax
paid during the two 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.
(6)(5) For the purposes of this subsection:
(a) Any 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.
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