Summary:
If the corporation has a valid S-election granted by the Internal Revenue Service and is doing business in South Carolina, the
SC1120S must be filed.
S-Corporations are subject to an annual license fee of .1% of capital and paid-in-surplus, plus $15. The license fee cannot be less than $25. Both the income tax and license fees are reported on form SC1120S.
A corporation requesting an extension of time must submit an
SC1120-T and pay ALL the income tax shown to be due on the corporate tax return, plus ALL of the corporate license fee due, on or before the original due date of the corporate tax return. Extension form SC1120-T only extends time to file the SC 1120S return and does not extend form SC 1120S-WH – Withholding Tax on Income of Nonresident Shareholders. A corporation may file SC1120-T online. Submit payment electronically for free using
MyDORWAY. (No paper document is required if paying by this method).
S-Corporations are required annually to withhold 5% of the South Carolina taxable income of shareholders who are nonresidents of South Carolina. The income tax withheld must be paid using form
SC1120S-WH by the fifteenth day of the third month following the taxable year-end of the S-Corporation. Taxpayers requesting an extension of time to file
SC1120S must estimate an amount of income subject to withholding. Per SC Code Section 12-8-590(A), an extension of payment or filing of form SC1120S-WH is not permissible. Failure to file this return, along with full payment of the tax due, by the fifteenth day of the third month following the taxable year-end will result in late file and late pay penalties along with interest being imposed.
Form SC1120S-WH must be submitted separately from the SC1120S for processing purposes.
The S-Corporation must provide each nonresident shareholder a 1099-MISC form with the verbiage “South Carolina Only” written at the top. This form must show the respective amount of state income and tax withheld.
The S-Corporation does not need to withhold on behalf of any shareholder participating in a composite return. Shareholders participating in a composite return do not need to pay estimated tax. A non-resident shareholder may provide the S-Corporation with an affidavit, Form I-309, agreeing that he will pay and be individually responsible for any SC tax, interest, and/or penalties which may be due. The S-Corporation may attach such affidavit to form SC1120S-WH and the S-Corporation would therefore, not be required to withhold income tax on behalf of such shareholder. If an affidavit has been previously filed, it should not be resubmitted.
Mailing Addresses:
| Refund or Zero Return | Balance Due Return | Estimated Tax (SC1120CDP), Tentative (SC1120T), or Voucher (SC1120V)
| Correspondence
|
|---|
Refund or Zero ReturnSouth Carolina Department of Revenue
Corporate Refund
PO Box 125
Columbia, SC 29214-0032 |
Balance Due Return South Carolina Department of Revenue
Corporate Tax
PO Box 100151
Columbia, SC 29202
|
CDP, Tentative or S-WHSouth Carolina Department of Revenue
Corporate Voucher
PO Box 100153
Columbia, SC 29202
| South Carolina Department of Revenue
Corporate Tax
PO Box 125
Columbia, SC 29214-0400
|