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Got a Proposed Assessment From the SCDOR? What It Means and What to Do
A proposed assessment is the South Carolina Department of Revenue telling you it believes more tax is due and giving you the chance to agree, pay, or file a written protest before it becomes final.
Reviewed by LaToya Clark-Thompson, FounderLast updated
What this notice is
The SCDOR calls notices about unresolved tax matters Proposed Assessments. The title on yours may read Notice of Proposed Assessment, Notice of Proposed Adjustment, or something else, depending on the tax and the division that sent it. What they share is that the amount is not final yet. It is the state’s proposal, and the notice explains your right to protest it.
Why you got it
- The IRS changed your federal return (after a CP2000 or an audit) and the change was shared with South Carolina, but no amended state return was filed
- Your state return left out income that was reported to the SCDOR, such as a 1099 or a W-2 from a second job
- A credit, deduction or retirement income exclusion was claimed in a way the SCDOR did not accept
- For a business, a sales tax, withholding or other audit found a difference
- No South Carolina return was filed for a year the state expected one, so it estimated the tax
What to do now
- Find the date of the notice. The SCDOR gives you 90 days from the date of the notice to file a written protest. If the last day falls on a weekend or state holiday, it moves to the next business day
- Compare the proposed changes with your return and your records
- If you agree and can pay, pay through MyDORWAY or by mail with the voucher. If you agree but cannot pay in full, see SCDOR balance due for payment plans
- If you disagree, file a protest. In MyDORWAY, the option is File an Application for Appeal, with a copy of the notice attached. You can also use the Protest Pursuant to Revenue Procedures Act form (C-245) or write a letter
- A written protest should include your name, mailing address and phone number, taxpayer ID, the tax period and tax type, a statement of your reasons, and a copy of the Proposed Assessment
- If the issue came from a federal change, gather the IRS letter and the final federal figures too
What happens if you ignore it
If an unresolved matter is not protested within the window, the SCDOR makes its final assessment and begins collection. That can lead to wage levies or garnishment, a state tax lien, withheld refunds and added interest, and for businesses, action on licenses.
If you do protest and still disagree after the SCDOR issues its Department Determination, you can request a contested case hearing with the South Carolina Administrative Law Court within 30 days after the determination is issued.
How we help
We work out where the state’s number came from, whether a federal change, a missing form or a disallowed item, and check it against your return. Where the state is right, we prepare the amended South Carolina return and, if needed, the federal side; see amended tax returns. Where your records support a different answer, we assemble them for the protest. For a business sales tax issue, sales tax filing covers the cleanup.
Filing and arguing a protest, or speaking with the SCDOR for you, is representation. That is the independent licensed CPA we work with, with our office coordinating, and the SCDOR requires a valid power of attorney on file for anyone discussing the notice on your behalf. See tax resolution and our post on SCDOR tax issues.
What to send us
- Every page of the SCDOR notice, front and back, through the secure client portal
- The South Carolina and federal returns for the period on the notice
- Any IRS letter about the same year
- The records behind the items the state changed
Frequently asked questions
How long do I have to protest an SCDOR proposed assessment?
The SCDOR says you have 90 days from the date of the notice to file a written protest, and a deadline that lands on a weekend or state holiday moves to the next business day. Count from the date printed on your notice, not the day it arrived. A timely protest generally holds collection until the matter is resolved.
Can I protest an SCDOR assessment online?
Yes. In MyDORWAY, the SCDOR’s free online portal, you can file an Application for Appeal and attach a copy of the notice. Alternatively, you can complete form C-245 and send it to the address or email on the notice, or write a protest letter with the required information.
Why is South Carolina billing me after the IRS changed my return?
South Carolina starts from your federal adjusted gross income, so a federal change usually changes the state tax too. The IRS and SCDOR share information. If an amended state return was not filed after the federal change, the SCDOR may propose the adjustment itself. Filing the amended return with the final federal numbers often resolves it.
Can I agree with part of an SCDOR assessment and protest the rest?
The SCDOR’s guidance on assessments allows you to agree with part of a proposed assessment and protest the remainder. Paying the part you agree with can limit the interest and penalties that keep building on it. Be specific in the protest about which items you dispute and why.
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 balance due notice
South Carolina shows tax owed. Check it, then pay, set up a Payment Plan Agreement, or dispute it.
Learn moreSCDOR identity verification letter
South Carolina wants you to confirm you filed your return before it releases the refund.
Learn moreCP2000 notice
Third-party records do not match your return. A proposal you can agree with, or dispute with documents.
Learn moreHow to respond to an IRS letter
Check it, decide whether you agree, gather support, reply by the date, and keep proof.
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