Filing/Payment Options
The IRS began accepting corporate federal returns electronically in 2004. The IRS sought participation by states to launch a Fed/State effort, but that was delayed to 2006 by mutual agreement. South Carolina elected to delay offering Fed/State Corporate electronic filing until the Summer 2007. This allowed potential software developers and the SC DOR enough time to fully test and implement this new electronic filing option.
As of August 6th, the SC Department of Revenue is in "production" mode with the IRS for tax year 2006 returns. We can receive "live"/production FedState Corporate returns for tax year 2006 ONLY. On August 31st of 2007, the first software partner was approved for filing of Corporate FedState returns. That developer is CCH. One other developer is testing with SC DOR. These developers must test anew with South Carolina for tax year 2007. We will update this site once developers are approved for tax year 2007.
FedState Corporate filing is another example of the agency's commitment to offering electronic filing and payment options to its taxpayers.
Fed/State Electronic Filing for Corporations will provide taxpayers the ability to file both their federal and South Carolina corporate returns electronically in one transmission or in separate transmissions with the IRS. By participating in Fed/State Corporate filing, the DOR continues to offer new electronic filing/payment options to the taxpayers of South Carolina.
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EPay --- filing/payment option utilizing a browser based application to file directly to the SC Department of Revenue for FREE.
- EFT --- taxpayers can call or use the internet through Global Payment Systems to remit payments OR you can generate a payment through your bank to pay your corporate tax by Electronic Funds Transfer (EFT).
- 2D Barcode --- utilize purchased/downloaded software to create a paper SC corporate return with a barcode holding return data.
Forms/Publications/Info
Other Links
Corporate
Every corporation organized under the laws of this state and every foreign corporation authorized to do business in this state are required to file a tax return even if no business was transacted during the income period. Also, every unauthorized foreign corporation doing business in this state, every political organization (IRC section 527(e) or (527g) and every homeowners' association (528c) which have South Carolina taxable income must file a return.
Fed/State
In 1991, South Carolina was the pilot state in the Fed/State filing program for individual income. In keeping with its leadership position in electronic filing, South Carolina plans to offer Fed/State filing for Corporate (SC1120/1120S) in September, 2007. Taxpayers will be able to file both federal and South Carolina returns or just the state return electronically utilizing tax preparation software available from software developers. The SC1120/1120S along with all SC Corporate Credit forms and the SC2220 will be supported for electronic filing by the agency. Corporate returns for a tax year prior to 2006 or amended returns will NOT be eligible for electronic filing via the Fed/State method.
EPay
In September of 2002, EPay made its debut on the SC Department of Revenue's website. Currently, there are two web based corporate filing/payment applications. SC1120-CDP (Declaration of Corporate Estimated Tax Payments) was the ground breaker and was recently joined by the SC1120-T (Corporate Extensions) application.
Once FedState Corporate goes into production and "real" returns are received, the agency will roll out a SC1120-V (Corporate Payment Voucher for Electronic Filing) under EPay.
The SC1120-CDP is required to be filed by the 15th day of the 3rd, 6th, 9th and 12th months following the beginning of the taxable year. The total of the estimated payments must equal 100% of the final tax liability, based on requirements for federal estimated income in IRC Section 6655. No estimated tax payment is required, if the estimated tax is less than $100 annually.
The corporate file number is an 8-digit number plus a 1-digit check number and should always begin with the number "2". The format of the number may be shown as "2XXXXXXX-X". It can be found on the corporate return booklet or on correspondence pertaining to the corporate account.
The Corporate request for extension is made using form SC1120-T and must be filed on or before the original due date of the return. The full amount of the tax and license fee should be remitted with the SC1120-T. The South Carolina Department of Revenue will grant an additional 6 months to file a South Carolina corporate income tax and corporate license fee return (Form SC1120 or SC1120S), a utility income tax return and corporate license fee return (Form SC1120U), a bank franchise tax return (Form SC1101B), or a savings and loan income tax return (Form SC1104).
EFT (Electronic Funds Transfer)
Two payment options exist within EFT (Electronic Funds Transfer). These options are offered through the Automated Clearing-House (ACH) system to electronically transfer tax payments.
The ACH system is a nationwide network designed for this purpose and is the preferred transaction method for many financial institutions and corporations. The clearing facilities, delivery methods, and settlement services operated by the Federal Reserve system are utilized within this network in order to maintain security and increase the efficiency of transactions.
Qualifying taxpayers must select a payment method. This is done by completing the Registration Application For Electronic Funds Transfer (D-128). This form must be completed and submitted to the agency before tax payments can be made via EFT. Advantages of making payments through the program are:
- The cost and time to generate and sign checks is eliminated.
- You know exactly when your account will be debited.
- EFT can be implemented without any significant investment, such as additional computers or remittance processing hardware.
If you have additional questions or would like further information, please feel free to call the SC Department of Revenue at 800-476-0311 or in the Columbia area dial 803-896-1715. We may also be reached by fax at 803-896-1779.
2D Barcode
While not electronic, filing your SC1120 or SC1120S or SC1120TC by utilizing a 2D Barcode producible software is the next best thing. The software product produces a hard, paper copy of the return with a business card sized 2D barcode on the actual return. That barcode has the entire return's data stored in it and can be scanned by equipment at the SC DOR in just seconds.
A limited number of software companies produce a 2D Barcode product for South Carolina. Please click here to view the list of 2D Barcode partners for South Carolina.
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