Tax Overview: South Carolina
South Carolina tax debts are handled by the Department of Revenue and can trigger liens, levies, and wage garnishments. The state's OIC will stop collections while under review. Installment agreements can be set up online (10% DP waived, $45 fee) or via form (10% DP plus $45 fee required). Taxpayers on wage garnishment are NOT eligible for an IA — garnishment reduction must be pursued through the Central Levy Department with extensive documentation.
Key Tax Facts
- OIC available (form must be requested from state) — WILL stop collections
- Online IA setup: 10% down payment waived but $45 IA fee required
- Form FS-102 IA: 10% down payment PLUS $45 fee required
- Lower DP or longer IA available with written hardship plus supporting docs (3 months bank statements, income/expenses)
- Clients on wage garnishment are NOT eligible for IA
- Garnishment reduction through Central Levy Department requires extensive documentation
- Reduction docs: letter of financial hardship with SSN, full name, payroll fax number, last 2 pay stubs, major bills from last 30 days, monthly expenses, last 2 bank statements
- Top rate reduced to 6.4%
Common Tax Issues
Wage garnishment and installment agreements are mutually exclusive — once garnished, the IA path is closed
The garnishment reduction documentation requirements are among the most extensive of any state
The online vs. form IA difference in down payment requirements can catch taxpayers off guard
Taxpayers should set up an IA before garnishment to preserve that option
Resolution Options in South Carolina
Payment Plans (Installment Agreements)
Without financials: Up to 12 months
With financials: Up to 24 months
Online: 10% DP waived, $45 fee. Form FS-102: 10% DP plus $45 fee. Lower DP/longer IA with written hardship plus docs.
Offer in Compromise (OIC)
Available: Yes
Stops collections while pending
Form: Must request from state
WILL stop collections.
Wage Garnishment
Rate: Varies
Can lift with payment plan: No
Can reduce amount: Yes
Not eligible for IA if on garnishment. Contact Central Levy Department. Reduction requires extensive documentation: hardship letter, SSN, full name, payroll fax, 2 pay stubs, major bills, monthly expenses, 2 bank statements.
Penalty Abatement
Available: Yes
Bank Levy
Can release: No
Recent Tax Changes
- Top rate reduced to 6.4%
Official Resources
How Tax Advocate Group Helps South Carolina Taxpayers
Whether you're dealing with the IRS, the South Carolina Department of Revenue, or both — we provide comprehensive tax resolution services to South Carolina residents and businesses.