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Got a Balance Due Notice From the SCDOR? What It Means and What to Do
A balance due notice means the South Carolina Department of Revenue shows an unpaid amount on your account. Check it, then pay, set up a Payment Plan Agreement, or dispute it by the date on the notice.
Reviewed by LaToya Clark-Thompson, FounderLast updated
What this notice is
The SCDOR sends a balance due notice when its records show tax, penalties or interest unpaid on your account. A genuine SCDOR notice includes a title, a notice number, your name and address, its purpose, the outstanding items, and contact information. It also gives a due date, and that date is what to plan around.
If the amount comes from a change the state proposes rather than a balance on a return you filed, you may have a proposed assessment instead, which has its own protest process.
Why you got it
- You filed your South Carolina return and did not pay all of the tax shown
- Too little state tax was withheld from wages or retirement income, or estimated payments fell short
- The SCDOR corrected a math error or a credit on your return
- A payment was made but applied to a different year or account
- A proposed assessment became final
What to do now
- Check the tax year and amount against your return and your payment records
- If you believe you already paid, mail copies of canceled checks or bank records to the address on the notice, as the SCDOR directs
- If it is correct and you can pay, pay online through MyDORWAY or by mail with the voucher
- If you cannot pay in full, request a Payment Plan Agreement on MyDORWAY
- If you disagree with the amount, follow the dispute instructions on the notice and keep a copy of everything you send
- Look at why it happened. If your withholding is too low, fix it now so the next return does not bring another notice; our W-4 withholding calculator is a starting point
Payment Plan Agreements, and what happens if you ignore it
Individuals and businesses can request a Payment Plan Agreement on MyDORWAY. The SCDOR’s conditions include filing and paying all returns in full during the plan (including estimated taxes), paying by bank draft, and not having an active levy or garnishment with the SCDOR. Missed or returned payments put the agreement in default.
While the plan is in good standing, the SCDOR says it will not seize or levy property, but it may file a state tax lien to protect its interest, and it applies state and federal refunds and lottery winnings to the debt. Those offsets do not count as your scheduled payments.
If the notice is ignored
The SCDOR warns that unresolved notices can lead to wage levies or garnishment, license revocation, tax liens, added interest and withheld refunds. South Carolina can also collect through its Setoff Debt and GEAR programs, which take state refunds and other payments to apply to the balance.
How we help
We confirm the balance against your return and payment history, find misapplied payments, and file any South Carolina return that is missing or needs amending. If the balance traces back to withholding or estimated payments, we set those right through tax planning. If you also owe the IRS, payment plan options covers the federal side.
Anyone discussing the notice with the SCDOR for you needs a valid power of attorney on file. Where the matter calls for that, it is handled by the independent licensed CPA we work with, with our office coordinating. See tax resolution.
What to send us
- Every page of the SCDOR notice through the secure client portal
- Your South Carolina and federal returns for the year listed
- Proof of any payments you made: bank records, canceled checks, MyDORWAY confirmations
- Recent pay stubs, if withholding may be the cause
Frequently asked questions
Can I set up a payment plan with the South Carolina Department of Revenue?
Yes. Eligible individuals and businesses can request a Payment Plan Agreement on MyDORWAY. You must keep filing and paying current returns on time, allow bank drafts, and not have an active SCDOR levy or garnishment. The SCDOR may still file a lien during the plan and will apply your refunds to the balance.
Will the SCDOR take my federal refund?
It can. The SCDOR says it applies state and federal tax refunds to a balance under a Payment Plan Agreement, and these offsets do not replace your scheduled payments. Outside a plan, South Carolina also collects through setoff programs. Federal refunds can separately be reduced for other debts through the Treasury offset program.
What is the GEAR program in South Carolina?
GEAR is a collection program the SCDOR runs, including for debts that other state and local agencies send it to collect, and the SCDOR’s notices page lists it alongside the Setoff Debt program. If a notice mentions GEAR, the debt is already in collection rather than at the reminder stage, so read the notice’s instructions closely and respond quickly.
Who do I call if I think my SCDOR balance is wrong?
Use the contact information printed on the notice. If there is none, the SCDOR lists a general notice line on its site. The SCDOR also has a Taxpayer Advocate for problems the normal channels have not resolved. If someone else, including a tax professional, is going to discuss it for you, a power of attorney must be on file.
Not the question you had? The full tax FAQ covers more ground, and our client reviews say what the work is actually like.
Related pages
SCDOR proposed assessment
South Carolina believes you owe more. You can agree, pay, or protest in writing before it becomes final.
Learn moreSCDOR identity verification letter
South Carolina wants you to confirm you filed your return before it releases the refund.
Learn moreIRS payment plan options
The Simple Payment Plan, other installment agreements, short-term plans, hardship status and offers.
Learn moreCP14 notice
The first bill for a balance due. How to check the figure and pay or set up a plan by the date on the notice.
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