South Carolina notice
SCDOR Proposed Assessment: What It Means and How to Protest
SCDOR's proposal of tax, penalty and interest; you have 90 days from the notice date to file a written protest.
Reply by the date on the notice
The 90-day protest window runs from the date printed on the notice, not the day it reached you; if day 90 falls on a weekend or state holiday, it moves to the next business day.
A Proposed Assessment is SCDOR telling you it believes you owe more tax, penalty or interest and explaining why. Nothing is final yet: you can pay, or file a written protest within 90 days of the date on the notice. If you do neither, SCDOR makes the assessment final and starts collection.
What this notice is telling you
- A division of SCDOR has found what it believes is a deficiency and is proposing to assess it; the notice must explain the basis.
- The title varies by division: Notice of Proposed Assessment (C-332), Notice of Proposed Adjustment, Proposed Assessment Report, Responsible Party Notice, among others.
- It lists the tax, penalties, interest and due date, plus your protest rights under the Taxpayers' Bill of Rights.
- If you protest on time, SCDOR says it will not try to collect or take other action until the protest is resolved.
What to do
Identify the version you have
Note the title, the notice number in the top-right corner and the tax period. A Notice of Proposed Adjustment (I-266) after a mail review reads differently from a Responsible Party Notice for unpaid business trust taxes.
Rebuild SCDOR's math
Compare the figures with your filed return and records. Desk-review adjustments often start from IRS data or W-2 and 1099 information that did not match what you reported.
Decide: pay, protest, or both in part
If SCDOR is right, pay by the due date to stop interest growing. If part is wrong, a protest can target only the items you dispute.
File the protest in writing
Use MyDORWAY (More tab, File an Application for Appeal, and attach the notice), the paper C-245, or a letter with the same information, sent to the address or email on the notice.
Ask for more time before day 90 if you need it
The statute lets SCDOR extend the protest period, but only if it is asked before the period runs out. Get any extension in writing.
What a valid protest has to contain
SC Code 12-60-450 sets out the contents, and the C-245 simply asks for them. A protest letter that leaves items out can slow everything down.
- Your name, mailing address and phone number
- The taxpayer identification number SCDOR uses for the account (SSN, file number or license number)
- The tax period or date covered and the type of tax
- A statement of facts and the reasons you disagree, including the law or authority you rely on
- A copy of the Proposed Assessment
If the total proposed is under $2,500, the statute says you do not have to cite legal authority, except for certain partnership, S corporation, exempt organization and employee plan taxes. You still need to explain the facts.
What happens after you protest
| Stage | What happens | Your timing |
|---|---|---|
| Acknowledgement Letter | The division that issued the notice confirms it received your protest. | 30 days from the letter's date to request an optional meeting |
| Division review | You can meet in person, by phone or by video. If the division agrees, you get a revised Proposed Assessment. | Respond to requests promptly |
| Appeals Section | Unresolved protests go here for a substantive review, a stipulation of facts and a chance to settle. | A meeting is strongly recommended |
| Litigation Section | A further review and discussion aimed at settlement. | Optional discussion |
| Department Determination | A written decision. By law it is due within one year of the protest unless the Administrative Law Court grants SCDOR an extension. | 30 days to request a contested case hearing |
Under 12-60-450(D), if you stop responding after filing, SCDOR may treat the protest as abandoned and decide it on the information it already has.
If you agree but cannot pay
SCDOR's appeals page says not to protest just because you cannot pay. Instead, ask for a Payment Plan Agreement. You need to request it before any levy or garnishment is in place, because SCDOR will not set up a plan once one is active.
Where this notice leads
If no protest arrives within 90 days, SCDOR assesses the amount and sends a Notice of Assessment. An unpaid assessment can lead to a state tax lien about 30 days later, and then to levies. A timely protest pauses that chain until the dispute ends.
Where this notice sits
The usual order. Not every account gets every notice, and some steps can be skipped.
Want a CPA to deal with it?
Bring the notice to a free consultation, in person on James Island or by video. We read it with you, tell you what it means for your account and, if you want us to, take over the response once SCDOR has our power of attorney on file.
IRS & SCDOR letters — Find your notice number below, see what it means and which date matters, then let a licensed CPA deal with the IRS or SCDOR on your behalf.
Sources
By Haigler CPA Group. Updated . Notices are revised from time to time, so go by the wording and dates on your own notice. The information on this site is general in nature and is not tax, legal, or accounting advice for your situation. Tax law changes and the right answer depends on facts we would need to review with you. Please speak with a qualified professional before acting on anything you read here.
Questions about Proposed Assessment
Does the 90 days start when I receive the Proposed Assessment?
No. It runs from the date printed on the notice. SC law treats the notice as effective once it is mailed to your last known address, even if you never pick it up, so a change of address does not stop the clock.
Can I protest only part of a Proposed Assessment?
Yes. Your protest states the items you dispute and why. Paying the part you agree with stops interest on that portion while the rest is reviewed.
Is a Proposed Assessment the same as an SCDOR audit?
Not always. It can come at the end of a field audit or desk review, but SCDOR also issues one when IRS or other agency data shows an adjustment. In that case the Proposed Assessment can be the first letter you get.
Do I have to go to a meeting with SCDOR?
No. The meeting after the Acknowledgement Letter is optional, though SCDOR strongly encourages it, and it can be held by phone or video if both sides agree. A representative with a valid SCDOR power of attorney can attend for you.
Other notices
- Estimated Assessment (C-293): SCDOR estimated your tax because no return was filedSCDOR has no return for a period and has estimated the tax; filing the actual return is usually how it is resolved.
- Notice of Refund Adjustment (I-351): Your SC refund was changed or applied to a debtYour SC refund was reduced, either because SCDOR changed your return or applied the refund to a tax or agency debt.
- SCDOR noticesSouth Carolina runs its own notices, deadlines and appeal rights, separate from the IRS. Find the type of letter you received below.
Talk to a tax expert
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