How to Avoid Delinquent Notices
All open SC state withholding tax accounts require quarterly (WH-1605) and fourth quarter/annual reconciliation (WH-1606) returns to be filed. Use the following tips to avoid delinquent notices, assessment notices and tax liens.
1. Use forms WH-1605 and WH-1606 for filing quarterly returns. Complete the returns entirely and pay any tax balance which may be due. Returns must be filed on or before the due date of the return.
2. The South Carolina Department of Revenue recognizes accounts as OPEN or CLOSED. You must file while your account is open even if you have no employees or withholdings in a quarter. There is no inactive status.
3. File a "ZERO" return by the due date if no tax has been withheld and you wish for the withholding account to remain open.
4. Close the SC state withholding account if there is no payroll and no payroll is anticipated. The withholding tax account can be reopened within three (3) years with the same SC state withholding tax account number if the ownership remains the same. You can reopen your withholding account by completing and submitting form SCDOR-111. You may close the withholding account by any of the following methods:
• Use Account Closing Form C-278 – complete form and return to DOR
• Use eWithholding- indicate last date of the paycheck after filing the quarterly return
• Telefile taxpayers call 803-898-5918- close account by indicating the date of your last withholding liability after filing the quarterly return
5. There is no cost to reopen a SC Withholding account.
6. "Close" information furnished to other state or federal agencies is not provided to the South Carolina Department of Revenue. The South Carolina Department of Revenue must be notified to close the SC state withholding tax account.
7. A completed WH-1606 Fourth Quarter/Annual Reconciliation form must be filed if the account was open for any portion of the calendar year. Complete lines 1-6 with zeros if there was no activity in the 4th quarter. Complete lines 7-10 for annual data. This form can be filed at the time you close your withholding account.