How to Apply for a South Carolina State Tax Payment Plan

If you owe South Carolina taxes but cannot afford to pay the full amount upfront, you may qualify for a state tax payment plan through the South Carolina Department of Revenue (SCDOR). This option allows eligible individuals and businesses to pay off their tax debt in monthly installments, offering financial flexibility and a structured path to compliance.

Payment plans, or installment agreements, can help taxpayers avoid serious enforcement actions such as tax liens, wage garnishments, and asset seizures. By entering into a payment arrangement, you can protect your income and property while fulfilling your legal obligations under South Carolina tax law. This benefit is especially valuable during financial hardship or cash flow disruptions.

This guide provides a step-by-step overview of how to apply for a tax payment plan in South Carolina. It covers eligibility requirements, application methods (online, by mail, or in person), and how to manage your plan once approved. You’ll also learn about applicable penalties and interest, the consequences of default, and how to modify or cancel your agreement if your financial situation changes.

What Is the South Carolina State Tax Payment Plan?

A South Carolina state tax payment plan, an installment agreement, allows eligible taxpayers to pay their outstanding tax bill over time rather than in one lump sum. Instead of facing immediate penalties, liens, or enforced collections, taxpayers can spread payments across several months, helping them avoid financial strain while still fulfilling their obligations to the state.

The South Carolina Department of Revenue (SCDOR) administers these plans to help individuals and businesses comply with South Carolina tax laws. Upon approval of a payment plan request, the taxpayer commits to making monthly payments until they fully pay the total balance, which includes tax, interest, and penalties.

Who Can Benefit from a Payment Plan?

• South Carolina individuals who owe individual income tax
• Business owners with outstanding business taxes
• Taxpayers with back taxes from prior years
• Anyone unable to pay their tax bill in full due to financial hardship

These plans are beneficial if you want to avoid aggressive legal action, such as wage garnishment or a tax lien, and you prefer to resolve your balance responsibly.

Alternatives to a Payment Plan

Before submitting a payment plan request, SCDOR recommends reviewing alternative payment options, such as

• Bank loans or credit card payments, which may carry lower interest rates
• Using savings from a bank account or savings account
• Making estimated payments toward your balance before interest accumulates further

Although these alternatives may help reduce long-term costs, a payment plan remains valuable if paying the full amount immediately isn’t realistic.

Who Is Eligible for a Payment Plan in South Carolina?

Before you submit a payment plan request to the South Carolina Department of Revenue (SCDOR), you must confirm whether you meet the eligibility criteria. South Carolina offers payment plans to individuals and businesses, but not all taxpayers qualify.

Basic Qualifications

You may qualify for a payment plan if you meet the following criteria:

• You’ve received a tax bill or official notice from the SCDOR.
• You owe individual income tax, business taxes, or other types of South Carolina taxes.
• You do not have an active levy or garnishment on your wages or bank accounts.
• You can make a monthly payment based on your total balance due.

A valid bank account is also required if you plan to set up direct debit (ACH debit) for your payments.

Who Is Not Eligible

You may be disqualified from entering into a payment plan agreement if:

• You have not received an official notice or tax bill from SCDOR.
• Your account is under active levy or garnishment by the state.
• You previously defaulted on a current agreement and haven’t resolved the issue.
• You have new tax debt and haven’t filed the necessary tax returns.

Ineligible taxpayers must resolve these issues before applying for a payment plan.

Special Rules for Business Taxpayers

Businesses must follow additional steps:

• Contact the SCDOR directly before submitting a formal request.
• Be prepared to discuss your outstanding business taxes and provide supporting payment information.
• Some business-related plans may require higher monthly payments or more documentation.

By reviewing these requirements carefully, South Carolina individuals and businesses can ensure they apply at the right time with the appropriate information.

When to Apply for a South Carolina Tax Payment Plan

Timing matters when requesting a tax payment plan for South Carolina. The South Carolina Department of Revenue (SCDOR) only accepts payment plan requests after a taxpayer receives an official tax bill or notice. Applying at the right time can help avoid penalties, interest, and legal action.

Apply After Receiving a Notice from SCDOR

You must wait until the SCDOR sends you a notice confirming your tax liability. This notice includes your due balance and instructions for arranging a payment plan agreement. Without this, your request will be denied.

Apply Before Collection Actions Begin

To avoid severe enforcement actions such as tax liens, levies, or garnishments, apply as soon as you receive your notice. Early action protects your wages, bank account, and assets from state-initiated legal action.

Apply If You’re Experiencing Financial Hardship

A monthly payment arrangement can prevent further debt escalation if you cannot pay your South Carolina taxes in full due to financial difficulty. Consider reviewing your payment options and applying before additional fees apply or interest accrues.

You cannot apply preemptively.

If you expect to owe taxes but haven’t received a notice, you’re not yet eligible for a payment plan. Instead:

• Pay online when you file using MyDORWAY.
• Make estimated payments toward your expected balance.
• Monitor for a formal notice from the SCDOR.

By applying promptly—after receiving a notice but before enforcement begins—you’ll have more control over your payment terms and minimize long-term costs.

How to Apply Step-by-Step

Taxpayers in South Carolina can request a payment plan in three ways: online through MyDORWAY, by mailing a paper form, or by visiting an SCDOR office in person. Each method has specific requirements and benefits depending on your situation.

Apply Online via MyDORWAY

Applying online is the fastest and most convenient option. Here’s how to complete your payment plan request through MyDORWAY:

1. Go to dor.sc.gov/payplan: Visit the official SCDOR payment plan page and click the “Request a Payment Plan” link.
2. Sign in or create a MyDORWAY account: If you don’t have one, follow the prompts to register. You’ll need your taxpayer information, including your account or notice number.
3. Complete the Payment Plan Request
   Enter the required details, including.
   
   • Type of tax (e.g., individual income tax or business taxes)
   • Your total balance due
   • Preferred payment method and payment date (1st–28th of the month)
4. Choose a Payment Method
   
   • Bank draft (ACH debit): No down payment is required. You'll need your bank account and routing number.
   • Check, money order, or online manual payments: Requires a down payment (typically 20% for individuals or 10% for GEAR debts).
5. Review and Submit Your Request: Carefully review the payment plan terms, confirm your payment type, and submit your application.
6. Pay the Application Fee: A $45 non-refundable fee applies to individual income tax payments. You can pay this as part of your submission.
7. Save Your Confirmation Code: After submission, you’ll receive a confirmation code. Save it for your records or to view the submission status later.

Tip: Using direct debit helps avoid missed payments and reduces the risk of plan cancellation.

Apply by Mail Using Form FS-102

You can mail your payment plan request using Form FS-102 if you prefer a paper application.

1. Download the form.
   
   Go to dor.sc.gov/forms and locate Form FS-102: Payment Plan Request.
2. Complete the form, including:
   
   
   1. Taxpayer information
   2. Type of tax owed (e.g., individual income tax or business taxes)
   3. Total balance due
   4. Proposed monthly payment amount
   5. Payment number and payment date
   6. Payment information (bank draft or manual payment)
      
3. Select a Payment Type
   
   1. Bank draft: Provide your bank account details.
   2. Check or money order: Include your down payment with the form.
      
4. Mail the Completed Form:
   
   SCDOR, Payment Plan
   PO Box 125,
   Columbia, SC 29214-0217

Apply in person at an SCDOR office.

For more complex situations or if you need personal assistance, you can apply in person:

• Find Your Local Office
  Visit dor.sc.gov/contact/in-person to locate the nearest SCDOR branch.
• What to Bring
  
  • A copy of your tax bill or notice
  • Valid ID
  • Form FS-102 (or fill it out at the office)
  • Down payment (if paying by check or money order)
• Work with an SCDOR Representative:
  An agent will help complete your payment plan request and discuss your terms.

In-person applications are helpful for those with additional billing issues, complex debts, or unresolved payment concerns.

Payment Plan Terms and Options

Once your payment plan request is approved by the South Carolina Department of Revenue (SCDOR), the terms of your payment plan agreement are determined by the total balance you owe and your chosen payment type. Understanding these details helps you stay compliant and avoid default.

Plan Length Based on Balance

The SCDOR assigns a maximum payment plan length based on your debt. Use the chart below to estimate your term:

Payment Plan Length by Balance Due

• $0 – $999: You may qualify for a payment plan lasting up to 12 months.
• $1,000–4,999: The maximum plan length available is 24 months.
• $5,000 – $9,999: You may be eligible for a 36-month payment plan.
• $10,000 and above: Taxpayers with higher balances can request up to 48 months to repay.

Divide your total balance by the months allowed to calculate your minimum monthly payment amount. For example, if you owe $4,000, your minimum payment over 24 months would be $167 per month.

Accepted Payment Methods

You can choose between two primary payment options. Each has specific benefits and conditions:

• Bank Draft (ACH Debit) – Recommended

• No down payment required
• Automatically withdrawn from your bank account on your selected payment date
• Lower risk of missed payments
• Best option for avoiding plan cancellation

• Check, Money Order, or Pay Online

• Requires a down payment (usually 20% for individual income tax, 10% for GEAR debts)
• You must manually send payments each month
• Available through MyDORWAY or by mail
• Increased risk of late or missed payments if not tracked carefully

Fees, Interest, and Penalties to Expect

When you enter a tax payment plan in South Carolina, it’s essential to understand the additional costs involved. Although a payment plan provides flexibility, it does not pause the accrual of interest or penalties, and some fees apply at the start of the agreement.

Application Fee

• A $45 non-refundable fee is required for individual income tax payments when submitting a payment plan request.
• This fee is added to your total balance and must be paid upfront, typically during an online application or by mail if you submit Form FS-102.

Ongoing Interest

• Interest continues to accrue on unpaid balances throughout the duration of the plan.
• The South Carolina Department of Revenue calculates this interest using a formula tied to the Internal Revenue Code (IRC) Sections 6621(a)(2) and 6622.
• The rate may change quarterly, so your monthly payment amount could fluctuate slightly over time.

Failure-to-Pay Penalty

• Any unpaid taxes are subject to a penalty of 0.5% per month, up to a maximum of 25%.
• This penalty remains in effect until your total balance is fully satisfied.

Failure-to-File Penalty

• Your balance may already include an additional penalty of 5% per month (up to 25%) if you filed your tax returns late.
• This penalty is separate from interest and cannot be waived by entering a payment plan.

Fluctuating Monthly Payments

Because both interest and penalties continue to grow, your payment amount may be adjusted during your plan term—even if your original payment plan agreement estimated a fixed amount. Be prepared to monitor your account for additional bill updates or revised payment information.

Terms and Conditions You Should Know

When you agree to a South Carolina tax payment plan, you enter into a formal payment plan agreement with the South Carolina Department of Revenue (SCDOR). Understanding the terms in advance helps you avoid misunderstandings or violations that could result in cancellation or legal action.

Agreement Is Binding and Not Appealable

• Once your payment plan request is approved and submitted, the balance is considered assessed.
• You waive the right to appeal the tax amount included in your current agreement.
• This includes individual income tax, business taxes, and any additional bill amounts already assessed.

SCDOR May File Tax Liens

• Even if you make your monthly payments on time, the SCDOR can file a tax lien against your property.
• This legal safeguard for the state may affect your credit or ability to secure financing.
• Any lien filing fees will be added to your total balance.

Refund Offset

• If you're owed a state or federal tax refund (or even lottery winnings), the SCDOR may apply those amounts to your outstanding balance.
• This offset does not replace your monthly payment amount, which must still be paid on schedule.

Automatic Bank Draft Authorization

If you select ACH debit (bank draft) as your payment method, you authorize the SCDOR to:

• Withdraw your scheduled monthly payment from your bank account until your balance is paid in full
• Share your payment information with financial agents as needed
• Accept future payment type updates, provided you notify them at least five business days before your payment date

To cancel this authorization, contact the SCDOR before your subsequent scheduled withdrawal.

What Happens If You Default on the Plan?

Failing to follow the terms of your South Carolina tax payment plan can lead to serious financial and legal consequences. If you default on your payment plan agreement, the South Carolina Department of Revenue (SCDOR) may cancel your plan and pursue immediate legal action to collect the remaining balance.

Consequences of Missing a Payment

If you miss a scheduled monthly payment, the South Carolina Department of Revenue (SCDOR) may take the following actions:

• Cancel your payment plan agreement without notice
• Demand immediate payment of your total balance, including interest and penalties
• File or enforce a tax lien against your property or assets
• Put a lien on your bank account, wages, or personal property.
• Garnish your income or intercept lottery winnings and other state payments
• Add collection costs or additional bill charges to your account

Legal Authority for Enforcement

Under Title 12, Chapter 54 of the South Carolina Code, the SCDOR can use aggressive collection tools if a taxpayer fails to pay after demand. This includes the right to:

• Seize and sell property
• File liens
• Apply any due refunds or credits to your debt

What to Do If You Can’t Make a Payment

If you anticipate any difficulty meeting your next payment date, please reach out to the SCDOR as soon as possible. You may be able to adjust your payment plan terms or request a temporary pause before default occurs.

Contact Information:
Email: PPARequest@dor.sc.gov
Telephone Number: 1-844-898-8542

How to Keep Your Plan in Good Standing

Once your payment plan agreement is active, avoiding cancellation and legal action is critical. Following best practices and avoiding common mistakes can help you complete your South Carolina tax payment plan.

Best Practices

Follow these habits to stay current on your monthly payment and protect your agreement:

• Use a bank draft (ACH debit) when possible: This provision ensures your payment amount is automatically withdrawn from your bank account each month, reducing the risk of missed payments.
• Keep your payment and contact information updated: If your bank account, mailing address, or email changes, please notify the South Carolina Department of Revenue (SCDOR) promptly.
• File all required tax returns on time: Late or missing tax returns can result in additional assessments that put your plan at risk.
• Pay any new tax liabilities fully and on time: Your plan only covers the current agreement. New taxes must be paid separately.
• Retain proof of each payment: Save receipts or screenshots, especially when you pay online or by money order.

Things to Avoid

To prevent default, avoid the following:

• Missing or late payments: One missed payment date can trigger plan cancellation.
• Closing the bank account used for direct debit: This will cause ACH payments to fail unless updated in advance.
• Accruing new tax debts: Additional balances may lead to a rejected or terminated plan.
• Ignoring communication from SCDOR: Essential updates or issues are often sent by mail or email.
• Making changes without approval: Contact SCDOR before altering your payment type, method, or schedule.

How to Modify or Cancel Your Payment Plan

Suppose your financial situation changes or you need to update your payment information. In that case, the South Carolina Department of Revenue (SCDOR) allows you to make limited changes to your payment plan agreement. However, you must act in advance to avoid disruption.

When and How to Make Changes

To request a change, follow these steps:

1. Contact the SCDOR at least five business days before your next payment date
   
   • Email: PPARequest@dor.sc.gov
   • Phone: 1-844-898-8542
2. Specify what you want to change, such as
   
   • New bank account for ACH debit
   • New payment date
   • Updated monthly payment amount (if approved)
3. Wait for confirmation.
   The SCDOR may request additional information to process the update.

Paying Off Your Plan Early

You’re allowed—and encouraged—to pay your total balance early if possible. Early payoff:

• Reduces the total interest accrued
• Eliminates the risk of default or added legal action
• Can be done in person, by money order, or pay online through MyDORWAY

Checklist Before You Apply

Ensure you are fully prepared before submitting your payment plan request to the South Carolina Department of Revenue (SCDOR). This checklist will help you avoid delays and improve your chances of approval.

Required Information

You’ll need the following details ready when applying online, by mail, or in person:

• A recent tax bill or official notice from the SCDOR
• Your Social Security Number (SSN) or Federal Employer Identification Number (FEIN)
• Current contact information (mailing address, phone number, and email)
• Your total balance due
• Bank account and routing number (if choosing ACH debit)
• Down payment (if required for check, money order, or manual payment plans)

Important Considerations

Before finalizing your payment plan request, review these questions:

• Can you afford the proposed monthly payment amount?
• Would a loan or credit card payment reduce interest compared to the plan’s terms?
• Have all your required tax returns been filed, and are they up to date?
• Do you understand the full payment plan terms, including interest, penalties, and potential legal action?
• Will you be able to pay future South Carolina taxes on time while your plan is active?

Reviewing these items in advance will help ensure a smooth and successful application process.

Frequently Asked Questions

Can I apply for a payment plan without filing my tax return?

No, you must file your tax return and receive a formal bill or notice from the South Carolina Department of Revenue (SCDOR) before requesting a payment plan. Without a filed return, the SCDOR cannot process your application. Filing is a mandatory first step, and any delays may lead to penalties or enforcement actions, so it’s essential to submit your return as soon as possible.

Can I include multiple years of tax debt in one plan?

You may consolidate tax debt from multiple years into a single payment plan, provided the total balance is disclosed and the SCDOR approves the request. The Department will determine the length and terms of the agreement based on your overall tax liability. This option can simplify repayment and help you manage your obligations more efficiently, especially when dealing with several past-due periods.

Can the SCDOR file a lien even if I make payments?

The SCDOR may file a tax lien to secure the state’s financial interest, even if you’re making payments. A lien may impact your credit and result in additional costs added to your total balance. While the lien does not mean your agreement is in default, it is a legal safeguard until your tax debt is fully paid.

What if I can’t afford the monthly payment anymore?

If your financial circumstances change and you find it challenging to meet your scheduled payment, please contact the SCDOR at your earliest convenience. You may be eligible to revise your plan or reduce your monthly payment. Ignoring the issue may lead to default, additional penalties, or collection action. Acting early allows the Department to work with you and help keep your account in excellent standing.

Will my state tax refund go toward my payment plan balance?

Yes, the SCDOR may apply your South Carolina state tax refund—or in some cases, a federal refund or lottery winnings—toward your outstanding balance. These offsets are automatically credited but do not replace your monthly payments. You must continue making your scheduled installments as agreed, even if a refund is applied to reduce your debt.