(A) The department, at its discretion, after notification as provided in this section, may require a person subject to provisions of law administered by the department, to post a cash or surety bond, deposit and maintain taxes due including associated penalties and interest in a separate account in a bank or other financial institution in this State, or both, if the person fails to file a timely return or pay a tax for as many as two tax filing periods in a twelve-month period.
(B) The amount of the bond must be determined by the department and may not be greater than three times the estimated average liability each filing period of the person required to file the return. A cash bond must be held by the State Treasurer, without interest, as surety conditioned upon prompt payment of all taxes, penalties, and interest imposed by law upon the person.
(C) A person required to maintain a separate account must give the name of the financial institution, the account number, and other information the department requires. Taxes, penalties, and interest due must be withdrawn from the account by preprinted, consecutively numbered checks signed by a properly authorized officer, partner, manager, employee, or member of the taxpayer and made payable to the department. Monies deposited in the account must not be commingled with other funds. The department, at its discretion, may apply Section 12-54-250, if the amount due from the taxpayer is fifteen thousand dollars or more.
(D) When a person required to post a bond or maintain a separate account, or both, complies with all requirements of law and regulations for a period of twenty-four consecutive months, the department shall return the bond and cancel the bonding and separate account requirements.
(E) The department may serve the notice required by this section by mail or by delivery by an authorized agent of the department to the person in hand or at the person's last or usual place of abode or at his place of business or employment. For corporations, partnerships, or trusts, the notice may be delivered by mail or by delivery by an authorized agent of the department to an officer, partner, or trustee in hand or at the officer's, partner's, or trustee's last or usual place of abode or at his place of business or employment.
(F) A person who fails to comply with this section is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned not more than thirty days, or both. Offenses under this section are triable in magistrates court. These penalties are in addition to other penalties provided by law.
HISTORY: 1985 Act No. 201, Part II, Section 32A; 2001 Act No. 89, Section 35, eff July 20, 2001; 2007 Act No. 110, Section 43, eff June 21, 2007; 2007 Act No. 116, Section 48, eff June 28, 2007, applicable for tax years beginning after 2007.
Structure South Carolina Code of Laws
Section 12-54-10. Definitions.
Section 12-54-17. Action by Attorney General to recover taxes, penalties, and interest.
Section 12-54-25. Interest due on late taxes; applicable interest rate.
Section 12-54-46. Exemption certificate violations; penalties; exception.
Section 12-54-50. Penalty for checks returned to department on account of insufficient funds.
Section 12-54-55. Interest on underpayment of declaration of estimated tax.
Section 12-54-75. Electronic collection of revenues.
Section 12-54-85. Time limitation for assessment of taxes or fees; exceptions.
Section 12-54-87. Timely filing discount.
Section 12-54-90. Revocation of license to do business for failure to comply with law.
Section 12-54-100. Authority of department to conduct examination or investigation.
Section 12-54-123. Surrender of property upon which levy has been made; liability to taxpayer.
Section 12-54-125. Withdrawal of warrants of distraint.
Section 12-54-126. Return of licenses.
Section 12-54-138. Recovery of duplicate refund.
Section 12-54-155. Substantial underpayment of tax or substantial valuation misstatement.
Section 12-54-160. Waiver, dismissal or reduction of penalties.
Section 12-54-170. Deposit and distribution of funds collected as penalties and interest.
Section 12-54-180. Manner of collection of penalties and interest.
Section 12-54-190. Precedence of this chapter over other statutes.
Section 12-54-195. Penalty if responsible person fails to remit sales tax to Department of Revenue.
Section 12-54-196. Collection of excessive tax by retailer; refunds; penalty; defenses.
Section 12-54-200. Requirement of bond securing payment of taxes, penalties, and interest.
Section 12-54-227. Out-of-state collections.
Section 12-54-230. Access to Employer's Quarterly Report.
Section 12-54-260. Setoff for delinquent taxes.
Section 12-54-265. Information on debtor named in warrant for distraint.
Section 12-54-270. Returned refund check as unclaimed property.