What should a business do if they have Nexus, but have not filed tax returns? Is there a voluntary program?
Non-compliant taxpayers having a filing requirement but not filing may be subject to taxes, penalties and interest for periods of ten years or more. Accordingly, such a taxpayer should contact the SCDOR and request consideration for the
Voluntary Disclosure Program.
How do I respond to your letter?
Your letter will include the
Business Activities Questionnaire (NX-100) form. Return your completed NX-100 by the due date on your letter and submit it by one of the options below:
- Upload your completed questionnaire (including any supporting documents) on
MyDORWAY by selecting
Upload Requested Documents
- Attach and email the completed form to the person listed on your letter
- Print and mail the completed form to: South Carolina Department of Revenue, Nexus, PO Box 125, Columbia, SC 29214-0970
- Fax the completed form to 803-737-2921
Why did I receive this letter?
We have identified your company as potentially making sales or providing services to customers located in South Carolina. We are looking into your company's activities to determine if Nexus is established for any Sales and Use Taxes and any relevant Income Taxes.
I am registered and filing in South Carolina - what more do I need to do?
Please complete and submit the Business Activities Questionnaire (
NX-100) form so that we can update our records.
What is de minimis?
De minimis means that a violation of a law or rule is so small that it is immaterial and should be ignored. This is determined by looking at all of the taxpayer's in-state connections and activities, not focusing on each factor individually.
Once established, how long does Income Tax Nexus last?
Nexus determinations are made on a fiscal year by year basis.
Is there a way to see if a business has Nexus in South Carolina?
Out of state businesses who are
currently conducting business in South Carolina should complete the
Nexus Questionnaire on MyDORWAY.
If you are
planning on conducting business in South Carolina, review the Revenue Rulings below. If you answer "yes" to any of the questions in the Revenue Rulings, then you would have Nexus for the related tax type.
- Income Tax: Revenue Ruling
16-11
- Sales & Use Tax: Revenue Rulings
14-4 and
18-14
Can a business file and pay online?
A business can register and open tax accounts online using our secure tax portal,
MyDORWAY.
However, returns filed as part of a Nexus agreement (including Voluntary Disclosure (VDA) and Multistate Tax Commission (MTC) agreements) must be submitted to their assigned Nexus Auditor—not through the normal submission processes—for the penalties to be waived.
Why did I receive a bill after I filed my return, even though I have a Nexus agreement?
You must submit your return to your assigned Nexus Auditor—not through the normal submission processes—for penalties to be waived under your Nexus agreement, including Voluntary Disclosure (VDA) and Multistate Tax Commission (MTC) agreements.
If an out-of-state seller does not have Nexus, and is not required to file returns, who owes the Use Tax?
When the seller does not have Nexus, the Use Tax liability rests with the South Carolina purchaser. However, as a convenience to customers who are concerned with the potential for a Use Tax audit, the out-of-state seller may wish to voluntarily register to collect and remit the Use Tax. In this case, the seller will be provided a discount of up to $10,000 per fiscal year. (All other filers have a $3,000 per fiscal year discount cap.)
