Voluntary compliance is the cornerstone of our tax system. The South Carolina Department of Revenue relies on the assistance of all taxpayers in collecting and remitting the various taxes owed. Accordingly, there is a voluntary disclosure procedure for taxpayers who have sufficient South Carolina business activity or connection ("nexus") to have a filing requirement but have not registered to collect or remit South Carolina taxes.
The voluntary disclosure program is designed to (1) encourage non-filers to come forward voluntarily and begin paying taxes without incurring penalties and (2) allow the Department to maximize compliance with limited resources.
All companies and individuals who have been conducting business in South Carolina and have not filed required tax returns in the past are encouraged to contact the department for a determination of nexus and initiation of voluntary disclosure procedures.
For more information, please see
What are the qualifications for voluntary filing status?
To qualify as a voluntary filer, you must:
- register to collect or remit taxes without previous contact from the SCDOR,
- respond timely and completely to the SCDOR's nexus questionnaire,
- register with the SCDOR if, upon review of the nexus questionnaire, nexus is determined to exist.
The procedure applies only in cases where nexus is the issue.
How do I request a voluntary disclosure agreement?
Mail or email a written request containing the following information:
- A description of the company's activities in South Carolina;
- The date the company started its activities in South Carolina;
- The type of tax involved and tax periods;
- The reasons for noncompliance with South Carolina tax law;
- A statement that the company has not been contacted by the South Carolina Department of Revenue for audit prior to the request;
- An estimate of the company's tax liability for the past three years;
- The company's proposed terms of settlement;
- The type of presence the company has in South Carolina - physical or economic (met the $100,000 threshold and is a
For the fastest service, submit your request by emailing SCVDA@dor.sc.gov
Mailing address: SCDOR, Nexus/Discovery Section, PO Box 125, Columbia, SC 29214-0970
Can a company headquartered in South Carolina qualify for the voluntary disclosure program?
No, only companies headquartered outside of South Carolina are allowed to participate in the voluntary disclosure program.
What happens after a taxpayer qualifies as a voluntary filer?
The SCDOR will:
- Accept the payment of taxes due and filing of returns for the three immediately preceding tax years, or for the number of preceding years that nexus existed, if less than three years.
- Apply interest in accordance with the South Carolina Code.
- Waive all penalties, except in cases of fraud or misrepresentation of fact.
Can I pay taxes owed online?
Once your voluntary disclosure agreement is confirmed and you have received a bill, you can pay online using our free tax portal,