FORMS TEAM2001 MAJOR CHANGES TO DOR FORMS IN CALENDAR YEAR 2001
Individual Income Tax (IIT)
1. SC1040A was moved before SC1040 in the IIT booklet to encourage taxpayers to use the shorter form, which is SC1040A.
2. Subline c was added to line 46 (retirement deduction) of the SC1040 and line 29 of Schedule NR. Subline c's purpose is to separate surviving spouse retirement income, which has no effect on the 65-and-older deduction, from other retirement income which must be subtracted from the 65-and-older deduction. The change was necessary for software programming and in order to clarify the instructions.
3. Schedule W, which many taxpayers have been submitting with their IIT tax returns, was renamed "Worksheet W", in the hopes of clarifying that the form is a worksheet which the taxpayer should keep for his own personal records. Last year, only the instruction for SC1040 line 7 mentioned either that the form was a worksheet or that it was to be kept with the taxpayer's personal records. This year it is mentioned in the "What's New: Form Changes", again in the instruction for SC1040 line 7, and boldly at the bottom of Schedule W Instructions.
4. With the creation of an SC1120TC, Schedule TC was renamed SC1040TC. It may serve as an attachment not only to SC1040, but also to SC1041 (fiduciary) or SC1065 (partnership). Two new IIT credits were added, for community development and for qualified conservation contribution. SC1040TC added references to three new IIT credit schedules: TC-5 (scenic rivers), TC-14 (community development) and TC-19 (qualified conservation contribution).
5. A deduction for contributions to the South Carolina Tuition Prepayment Program (SCTTP) made on or after July 20, 2001 has been added at the front of the list of other subtractions from income in the instructions for SC1040, line 55 and other deductions in the instructions to Schedule NR, line 33.
6. Form UT-3W/UT-3 has been added to the 2001 IIT booklet to assist in calculating the use tax on SC1040 and SC1040A, etc. Instructions to SC1040 line 20 and SC1040A line 12 both refer to the UT-3W for instructions. Taxpayers also have the option to use the UT-3 to make periodic use tax payments as purchases are made, rather than waiting to the report at the end of the year.
7. Most Common Errors, which was less then ¼ of a page on line 17 of the 2000 IIT booklet, has been expanded to a full page and moved to page 2 of the 2001 IIT booklet. The top section is entitled "Common Errors …. And How to Avoid Them!" The last paragraph is titled "Before you file your Return" and includes instructions and a graphic.
Individual Income Tax (IIT) - continued
8. The cover was changed to emphasize the advantages of electronic filing. Page 3 is entirely devoted to electronic filing options, and the "What's New?" section is subdivided into four sections starting with electronic filing information. (The 2000 booklet had only ¼ page devoted to Internet Filing (SCnetFile).
9. References to the website are scattered in bold throughout the booklet, and a section "Look at what's on our website" has been added under the Table of Contents.
10. Instructions for SC1040 and Schedule NR have been changed from a two-column format to a full-page format, and tips have been added in the left margin.
Corporate Income Tax
1. SC1120-TC was designed due to the large numbers of credits. Information on the new form was included in the "What's New" section on Page 2 of the 2001 Corporate booklet. Schedule I on page 4 of the SC 1120, used in prior years for credits computation and summary, is now marked RESERVED with the introduction of the SC1120-TC.
2. Reference to new credit schedules was also included in the "What's New" section on Page 2 of the 2001 Corporate booklet: TC-5 (Scenic Rivers), TC-14 (Community Development), TC-15 (Corporate Tax Moratorium under Section 12-10-35), TC-16 (Corporate Tax Moratorium under Section 12-6-3365), TC-17 (Recycling Property Tax Credit …), TC-18 (Research and Development and TC-19 (Qualified Conservation Contribution).
3. A box was added to the front page of the SC 1120, 'C' Corporation Income Tax Return in the address section, "If you need Corporate returns or coupons mailed to you next year, check this box." If the box is not checked a booklet will not be sent next year.
4. The cover was re-designed to make it look different from some of the other DOR tax booklets, because some taxpayers receive it and think it is just another booklet and throw it away.
Sales and Use Tax
1. A simplified return, ST-3 EZ was designed and will be available to taxpayers on our website and on Fax-on-Demand. ST-3EZ should be used only if:
- No local taxes are due, and
- You are not located in a county that collects local tax.
2. Food tax was removed from the ST-3 and all related forms.
Sales and Use Tax (continued)
3. The 2001 booklet page called "Most Common Errors on Sales Tax Returns" was renamed "Stop, Look and Review – Guidelines for Avoiding Most Common Sales Tax Errors & Processing Delays".
4. The Essential Information page was formatted differently with bolding and bulleted items to make certain information easier to read and to spot.
1. Updated cover and Business Tax Telefile for W/H page.
2. Spread out General Instructions over two pages, rather than one. The format was also changed making the instructions easier to read.
3. Changed the 2001 page "Guidelines to Avoid Most Common Errors" which was a one-page list of sentences to a two-page format. The pages are called "Common Errors … and How to Avoid Them". They contain graphics and examples of parts of the returns and a check that explains how remittances sent to DOR by check should be prepared.
4. Standardized the font on the "Avoid Delinquents Notices" page.
5. A number of changes were made to form WH-1612. The agency is working toward changes to be made in how the paper W-2's are submitted.
6. Form 105 "SC W/H Tax Information Guide "was changed from a two-column format to paragraphs spread over the entire page.
7. Added an example of the computation of the amount to be W/H using the Personal Computer formula on the "Formula for Computing SC W/H page". The two types of formulas were clearly marked on the page "Personal Computer" and " Mainframe".
All Major Booklets
1. Removed information on TSC's being closed before the end of 2001.
2. Removed references to "Penalty of Perjury" on all forms.