H*3556(Rat #0165, Act #0086 of 1997)  General Bill, By Boan

Similar(S 342)
 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.

   02/27/97  House  Introduced and read first time HJ-7
   02/27/97  House  Referred to Committee on Ways and Means HJ-7
   04/17/97  House  Committee report: Favorable Ways and Means HJ-8
   04/29/97  House  Read second time HJ-22
   04/30/97  House  Read third time and sent to Senate HJ-10
   05/01/97  Senate Introduced and read first time SJ-8
   05/01/97  Senate Referred to Committee on Finance SJ-8
   05/21/97  Senate Committee report: Favorable Finance SJ-23
   05/22/97  Senate Read second time SJ-30
   05/22/97  Senate Ordered to third reading with notice of
                     amendments SJ-30
   05/27/97  Senate Read third time and enrolled SJ-17
   06/04/97         Ratified R 165
   06/10/97         Signed By Governor
   06/10/97         Effective date 06/10/97
   06/24/97         Copies available
   06/24/97         Act No. 86

AN ACT 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:

Eliminates "fees" and provides deadline for claiming credits or refunds

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, taxes 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 is not required to be remitted with a return or document, the amount of taxes must be determined and assessed within thirty-six months after the date on which any part of the tax was paid.

(C) Taxes may be determined 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;

(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 required to be shown on the return or document. The taxes 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 consents in writing, before the expiration of the time prescribed in this section for assessing taxes due, to the assessment of the taxes 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.

(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."

Time effective

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

Approved the 10th day of June, 1997.