South Carolina Sales Tax Nonpayment Risk Checklist
Introduction
South Carolina sales and use tax applies to retail sales, including online sales, and you need a
South Carolina Retail License to make retail sales in South Carolina. You file the ST-3, State
Sales and Use Tax Return, to report sales and use tax, and you file the ST-389, Schedule for
Local Taxes, to report local sales and use taxes when they apply. When you do not pay what you owe promptly, SCDOR can issue a state tax lien, which is a claim against real or personal property located in South Carolina.
SCDOR provides self-service tools through MyDORWAY, and the agency’s Contact Us guidance routes Sales & Use questions through a dedicated phone menu and email. You lower your risk when you confirm your filing period, identify what SCDOR expects you to file, and keep proof of filing and payment. Clear records help you respond to notices with accurate information and prevent repeated compliance gaps.
What This Issue Means
Sales tax nonpayment occurs when you file a return showing tax due, and you do not pay the taxes by the due date. You still file a return even when you have no tax due for the period, and you enter 0 on line 1 and line 3 of the ST-3 when you have no sales or purchases to report. Your account may also show delinquency when SCDOR issues a proposed assessment notice after identifying an unpaid balance from a filed return, an estimated return, or an audit.
You treat each notice as period-specific and track the form and filing period associated with the issue. SCDOR’s lien guidance identifies common proposed assessment notices, including the
Estimated Assessment Notice (C-293) and the Notice of Proposed Assessment (C-332). When
a balance remains unresolved, SCDOR can issue a Notice of Assessment (C-133), and a state tax lien can follow.
Filing And Payment Framework You Can Verify
You file the ST-3 to report sales and use tax for a reporting period tied to your Retail License.
You file the ST-389 to report the appropriate local taxes to the counties and municipalities in which your business makes sales and deliveries. You file the ST-389 when your business is located in a county that imposes the tax or when you deliver to a county or municipality with a local tax.
SCDOR publishes due dates by filing frequency. Monthly filers generally file for each month ended and pay by the 20th of the following month, and quarterly and annual schedules follow the same 20th-of-the-month pattern tied to the period end. You request approval from SCDOR to file quarterly or annually through MyDORWAY or by emailing SalesTax@dor.sc.gov.
Key Operational Rules That Affect Your Response
- File an ST-3 even when no tax is due for the period, and enter 0 on lines 1 and 3 for a
zero return.
- File and pay electronically when your South Carolina tax liability is $15,000 or more per
filing period.
- File the ST-3 through MyDORWAY, and MyDORWAY’s workflow includes the Sales and
Use Tax Worksheet and the ST-389 workflow.
- Include your Retail License number or Use Tax registration number, your FEIN or SSN,
and the period covered when you file on paper.
What Can Happen When A Balance Stays Unresolved
SCDOR can issue a state tax lien when you do not pay what you owe promptly, and a lien is a claim against real or personal property located in South Carolina. You cannot sell or refinance a property that has a lien issued against it. SCDOR lists state tax liens online in the State Tax Lien
Registry, and the registry includes unpaid liens that were previously filed with county offices.
SCDOR’s lien process starts with notices that explain what you can do and when you can do it.
SCDOR uses proposed assessment notices, most commonly C-293 and C-332, to outline resolution steps, appeal options, and consequences tied to the dates on the notice. A Notice of
Assessment (C-133) may follow, and approximately 30 days after issuance, SCDOR may issue a state tax lien and mail a Notice of State Tax Lien to Taxpayer (W-131-F).
Checklist: What To Do After Receiving This Or Identifying
This Issue
Follow these steps in order, and document each action you take so you can confirm what was posted and what remains open.
Step 1: Assemble Your Return And Payment File
Gather every notice, letter, or document you received regarding Sales & Use tax and organize them by date. You collect copies of filed ST-3 returns and supporting worksheets, and you
collect ST-389 copies for periods where local taxes apply. You keep proof of filing and proof of payment in the same period folder.
Create a one-page timeline for each period. You list the period end date, the due date, the date you filed, and the date you paid. Your timeline supports clearer calls and messages when you contact SCDOR.
Step 2: Confirm Which Periods And Forms Apply
Review the notice and record the periods SCDOR lists, as a notice can involve multiple periods.
You confirm whether the period aligns with a monthly, quarterly, annual, or seasonal filing schedule. You verify whether your business is delivered to local tax jurisdictions, because that determines whether the ST-389 filing requirement applies.
Verify whether you filed a required zero return. SCDOR’s ST-3 instructions state that you file a return even when you have no tax due for the period, and you enter 0 on line 1 and line 3 when you have no sales or purchases to report. A missing zero return can trigger estimated activity and follow-on notices.
Step 3: Verify The Amount Due Using Your Records
Compare your sales records to the amounts shown on the ST-3 and the supporting worksheet for the period. You confirm that you did not include sales tax collected in gross proceeds, because the worksheet instructions tell you to exclude collected sales tax from that total. You verify that you maintained records that support deductions claimed, because ST-3 instructions require records that support deductions.
Separate principal tax, penalty, and interest when you review a notice. ST-3 instructions provide penalty calculations and direct you to the penalty and interest calculator. The penalty rules include a failure-to-file penalty that accrues by month or fraction of a month, and a failure-to-pay penalty that accrues by month or fraction of a month.
Step 4: Use The Correct Filing Method For Your Account
File through MyDORWAY when electronic filing applies, and electronic filing applies when your tax liability is $15,000 or more per filing period. You file by paper only when your tax liability is less than $15,000, and you mail the ST-3 and ST-389 to the address printed on the ST-3 when you file by paper. You confirm that you completed all required lines, including lines that report zero amounts.
Keep proof of your filing submission. MyDORWAY provides access to account history, correspondence, and payment history, and the portal reduces errors through automatic calculations. A saved confirmation helps you resolve posting questions faster.
Step 5: Contact SCDOR Using The Sales And Use Tax Routing
Contact SCDOR using the Sales & Use Tax phone menu and email routing shown on the
Contact Us page. You use 1-844-898-8542 (Option 2 then Option 4) for Sales & Use matters, and you use SalesTax@dor.sc.gov for email requests tied to sales tax. You keep the notice number, your Retail License number, and the periods involved available during the contact.
Document the guidance you receive. You record the representative’s name, the date, and the action items you agreed to complete. A detailed call log supports consistent follow-through.
Step 6: Request A Payment Plan Agreement When It Fits Your Situation
Request a Payment Plan Agreement when you need more time to pay, and your account meets the SCDOR’s eligibility requirements. SCDOR charges a nonrefundable $45 fee for Payment
Plan Agreements, and SCDOR states that you cannot have an active levy or garnishment when you request a plan. SCDOR also states that you must have received a notice to request a
Payment Plan Agreement.
Use the published request process. FS-102 provides an online starting point and explains payment options, including bank draft payments and down payment rules for checks or money orders. FS-102 also includes a maximum plan length table that ranges from 12 to 48 months based on balance thresholds.
Step 7: Use The Published Penalty Waiver Process When Needed
Request penalty relief through the published SCDOR penalty waiver process. SCDOR states that the fastest way to request a penalty waiver is through MyDORWAY, and SCDOR provides the Penalty Waiver Request form C-530 for paper requests. You include supporting documentation and complete a separate request form for each tax account when using C-530.
Track the outcome notices. SCDOR states it issues either a Penalty Waiver Request Approval
(C-351) or a Penalty Waiver Request Denial (C-344). A saved copy of the request and the decision notice supports future account reviews.
- 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: Monitor Status Until The Account Reflects The Correct Outcome
Check your payment and return status in MyDORWAY when you use the portal. SCDOR explains that MyDORWAY payment status changes to Posted after processing, and processing can take a few business days. You keep confirmation codes and records to trace each payment and filing.
Watch for lien-stage signals when a balance stays unresolved. SCDOR’s lien guidance connects specific notices to the lien sequence, including C-293, C-332, and C-133. A fast response to those notices helps you manage deadlines and keep filings complete.
Frequently Asked Questions
Do I File An ST-3 When I Have No Sales?
You file an ST-3 even when you have no tax due for the period. You enter 0 on line 1 and line 3 when you have no sales or purchases to report.
When Do I Need To File The ST-389?
You file ST-389 to report local sales and use taxes for the counties and municipalities in which you make sales and deliveries. You file it when your business is located in a county that imposes the tax or when you deliver into a county or municipality with a local tax.
When Does Electronic Filing Apply?
Electronic filing and payment apply when your South Carolina tax liability is $15,000 or more per filing period. MyDORWAY provides an ST-3 and ST-389 workflow that supports electronic filing.
What Is The Notice Path That Can Lead To A Lien?
SCDOR states that it issues proposed assessment notices when you have an unpaid balance from a filed return, an estimated return, or an audit. SCDOR identifies C-293 and C-332 as common proposed assessment notices and identifies C-133 as the Notice of Assessment that can precede a lien.
How Do I Confirm A Lien Is Satisfied?
SCDOR states that it updates the State Tax Lien Registry within 30 days of receiving full payment to reflect that the lien is satisfied. SCDOR states you can obtain a lien satisfaction letter, also known as W-131-S, through the registry.
Closing
Reduce nonpayment risk when you file the ST-3 on time, file the ST-389 when local tax rules apply, and keep proof that your return and payment are posted. You improve communication with SCDOR by organizing documents by period and maintaining a clear call log of actions and outcomes. MyDORWAY and the Sales & Use Tax contact routing help you connect to the right unit and track payment and return history through your account.
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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