South Carolina Bank Levy Checklist: Understanding
State Enforcement
Introduction
A bank levy is a civil collection action that the South Carolina Department of Revenue uses to reach intangible property, including bank deposits, to satisfy liabilities it administers or collects.
The department can levy bank accounts and certain investment accounts, and the levy can also reach certain contract payments, up to the total amount due. Protect your options by reading every notice promptly and acting within established protest and hearing deadlines when you dispute the underlying assessment. You also protect your financial stability by tracking each communication and keeping proof of what you sent and when.
What A Levy On Intangibles Means
A levy on intangibles directs the holder of your intangible property to treat the levied amount as liable to the department, subject to the setoff of any matured or unmatured indebtedness you owe that holder. The levy can apply to intangible property that you own, that is owed to you, or that is scheduled to become due to you under a contractual obligation. The department can issue a levy on intangibles against bank accounts and certain investment accounts up to the total amount due. The levy can also include contract payments and future payments in some situations, so you should not assume it will involve only a single bank account.
Why The Department Issues A Bank Levy
The department can issue a levy against wages or intangible assets when you are under an assessment, a tax lien, or both. The levy lets the department seize assets to satisfy what it says you owe, so the underlying status of your account matters as much as the levy itself. The department warns that taxpayers who ignore notices or default on a Payment Plan Agreement may face involuntary collection activities, including levies. You reduce risk by addressing notices early and by following the terms of any agreement you enter.
What This Does Not Mean
A levy is a civil collection action and, by itself, does not indicate that criminal prosecution is underway. You still need to treat the levy seriously because it can restrict access to funds and lead to additional collection actions if a balance remains.
A levy on intangibles also does not limit the department to one account in every case. The department can levy bank accounts and certain investment accounts up to the total amount due.
It can serve a levy notice on the taxpayer and on the holder of the intangible property.
Checklist: What To Do After Receiving A Bank Levy
Notice
Step 1: Read The Entire Levy Notice Carefully
Read the entire notice as soon as possible, as each notice contains information you need to know and what you need to do. You should identify the notice title, the notice number, the stated reason for the notice, and the contact information shown on the notice.
Confirm whether the notice corresponds to a levy on intangibles and whether it identifies the amount of the levy. You should keep a complete copy of the notice in case you need it for a protest, a hearing request, or later discussions.
Step 2: Confirm The Debt And Your Identifiers Match
Confirm that the notice reflects your name and identifying information and that it refers to your account or obligation. You should also confirm whether the matter involves an assessment or a tax lien, because the department links levy authority to those account statuses.
Gather and retain all related letters, notices, portal messages, and envelopes with postmarks when available. You should keep copies of anything you send to the department and keep proof of delivery when you submit documents by mail.
Step 3: Contact The Holder Of The Funds For Operational Details
Contact the institution or person that holds the funds or intangible property to confirm whether it received levy instructions and what amount it treated as subject to the levy. You should ask for the date the holder received the levy notice and the amount it treated as covered.
Request written confirmation of what the holder can provide, and you should record the name of each representative you speak with. You should keep those notes with your levy file so you can compare what the holder reports with what the department states.
Step 4: Contact The Department Using The Notice Information
Contact the department using the specific contact information listed on your notice. You should ask the department to explain what it considers due and to confirm what enforcement posture applies to your account, including whether it treats you as under an assessment, a tax lien, or both.
Ask the department to confirm which notice it sent and when. You should write down what the representative tells you, and you should request written confirmation of any outcome the department communicates when it offers that confirmation.
Step 5: Use The Appeals Process When You Dispute The Underlying
Assessment
Appeal a division decision or a proposed assessment by filing a written protest within ninety days of the date of the division decision or the proposed assessment. You should treat the 90 days as the controlling deadline when disputing the underlying determination in collection actions.
Include the required identifying information, supporting facts, and your reasons for the appeal in your protest. You should follow the department’s stated filing methods, and you should keep copies of your protest and any attachments.
Step 6: Track The Department Determination And Hearing Deadline
The department must issue a department determination within 1 year of your filing a written protest, unless an extension applies under the governing rules. You should keep that determination because it controls the next stage of your dispute rights and outlines what the department decided.
Track the hearing request deadline, as you have 30 days to request a contested case hearing after the department sends or delivers its notice related to that determination. You should act quickly when you want a contested case hearing before the Administrative Law Court.
Step 7: Evaluate Payment Plan Agreement Eligibility
The department offers Payment Plan Agreements to eligible individuals, organizations, and businesses who need more time to pay off tax or GEAR debt. The department states you cannot have an active levy or garnishment with the department when you request a Payment Plan
Agreement.
Review the agreement requirements carefully, as missed or returned payments place the agreement in default. The department states it will not seize or levy property during the term unless default occurs or the department determines collection is in jeopardy.
- State enforcement notices and responses
- Sales tax audits, assessments, and collections
- Payroll & trust fund tax enforcement issues
- Penalty and interest reduction options
- Payment plans and state tax relief eligibility
- Representation before state tax agencies
Step 8: Document Every Communication And Submission
Record the date, time, and participant details for every call or meeting. You should save every letter, notice, portal confirmation, and mailed proof of delivery, because records support your position when you dispute facts, track deadlines, or show compliance.
Store your levy notice, protest materials, and payment or plan documents in a single, organized file. You should also keep any communications that include notice dates and stated due dates, as those details shape your deadlines.
Common Mistakes To Avoid
You should not ignore department notices because unresolved notices can lead to levies and other collection actions. You should not assume that time will preserve your rights, because protest and hearing windows are tied directly to notice dates and to mailed or delivered determinations.
Start the appeals process only if you dispute the findings and do not need time to pay. When you accept the department's conclusions and need more time to pay, you should make use of the Payment Plan Agreement resources and payment options.
Frequently Asked Questions
How Much Time Do I Have Before The Levy Takes Effect?
The department states it sends a Notice of Levy on Intangibles to the individual being levied.
You should read your notice promptly and contact the department representative listed on it, as the notice controls your specific next steps and timing.
Can The Department Levy My Entire Bank Account?
The department states it can levy bank accounts and certain investment accounts up to the total amount due. You should confirm the scope details with the holder that received the levy instructions, as the holder’s records show the amount it treated as subject to the levy.
Can I Dispute The Levy If I Disagree With The Tax Debt?
You can dispute the underlying proposed assessment by filing a written protest within ninety days of the date of the proposed assessment or division decision. You should track the department determination and the 30-day hearing request window when pursuing a contested case hearing.
Can I Set Up A Payment Plan To Stop Collection Activity?
The department offers Payment Plan Agreements for eligible tax or GEAR debt and lists specific eligibility requirements. The department states you cannot have an active levy or garnishment when you request a Payment Plan Agreement, so you should confirm your current status first.
Closing
Protect your options by reading every notice as soon as it arrives and following the listed contact instructions. Keep copies of everything you send, including dates and delivery proof.
You preserve your dispute rights by filing a protest within ninety days of an underlying assessment and within thirty days of a contested case hearing tied to unpaid taxes or state taxes.
Reduce future collection efforts by staying current on any payment plan and organizing records by notice date and deadline. This matters when wage garnishment, a court order, or action against personal property is involved. Clear records also help confirm exempt funds, proper handling of support payments, and available debt relief options if enforcement continues.
Facing State Tax Enforcement Action?
If you’ve received a notice related to sales tax or payroll tax enforcement and aren’t sure how to respond, our team can help you understand your options and next steps.
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