Payment Plan Agreements for Individual Income Tax and GEAR
If you are not able to pay in full, you may be eligible for a Payment Plan Agreement.
Tip: Research and compare your options. A loan with your bank or another financial institution may offer lower interest rates and may allow you to pay more timely to avoid additional penalties and interest. The rate of interest is established by the department in the same manner and at the same time as the underpayment rate provided in Internal Revenue Code Sections 6621(a)(2) and 6622.
Who can request a Payment Plan Agreement?
You must have received a notice to request a Payment Plan Agreement. If you have not received a notice, you can still make a payment through
- You are not eligible for a Payment Plan Agreement if you have an active levy or garnishment with SCDOR.
You can set up a Payment Plan Agreement based on the following parameters:
Determine your Balance Owed by adding
ALL of your South Carolina Individual Income Tax or GEAR debts together.
|Tax Type||Balance Owed||Payment Terms|
|Tax TypeIndividual||Balance Owed0 to $999||Payment Terms12 months or less|
|Tax TypeIndividual||Balance Owed$1,000 to $4,999||Payment Terms24 months or less|
|Tax TypeIndividual||Balance Owed$5,000 to $9,999||Payment Terms36 months or less|
|Tax TypeIndividual||Balance Owed$10,000 and above||Payment Terms48 months or less|
|Tax TypeBusiness ||Balance OwedAll balances||Payment TermsContact the SCDOR office near you|
Payment Plan Agreement Requirements:
A $45 fee is charged for Individual Income Tax Payment Plan Agreements. Please review these requirements carefully before you make your request.
As part of the agreement, you must:
File and pay all returns in full: You must continue to file and pay all returns in full during the term of your Payment Plan Agreement.
Have a bank account: You must list a checking or savings account on your Payment Plan Agreement request form.
Allow bank drafts: You must allow us to draft the scheduled payment from your bank account. A payment will be drafted immediately when your agreement is submitted. If you cannot make a scheduled payment or a payment is returned to us from your bank or financial institution, your agreement will be in default. If you do not allow bank drafts, you must pay a down payment equal to 10% of your total balance due.
File and pay estimated income taxes: You must remain current in paying estimated income taxes.
Provide additional information, as needed: You must provide us with any additional information as it is requested. We may perform periodic reviews of your financial condition during the term of the agreement to assess continued need as well as possible jeopardy of collection.
If you cannot meet these requirements, or any additional requirements established when you set up the agreement, your agreement will be in default.
As part of the agreement, the SCDOR:
Will not seize or levy property: We will not seize or levy any property during the term of the agreement unless the agreement goes into default or we determine collection of the tax is in jeopardy.
Will offset refunds and lottery winnings:
During the term of your agreement, we are required to offset any state or federal tax refunds and SC Education Lottery winnings. These will be applied to your debt and do not count as a scheduled payment.
Will provide written notification: We will provide 30-days written notification if the terms of the agreement change because of an improved financial condition.
May issue a Tax Lien: We may issue a tax lien to protect the state’s interest. This is a public record and may be reflected on your credit report.
Will take legal action if you default: We must take legal action to force collection of the tax immediately and without notice if you default on any of the terms of the agreement.