South Carolina General Assembly
105th Session, 1983-1984

Bill 413

                    Current Status

Bill Number:               413
Ratification Number:       440
Act Number:                387
Introducing Body:          Senate
Subject:                   Relating to the power of the Tax
                           Commission to examine the books and other
                           memoranda of resident taxpayers
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A387, R440, S413)

AN ACT TO AMEND SECTION 12-7-2270, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POWER OF THE TAX COMMISSION TO EXAMINE THE BOOKS AND OTHER MEMORANDA OF RESIDENT TAXPAYERS, SO AS TO REVISE THE PROVISIONS PERTAINING TO THE NOTICE REQUIRED TO BE GIVEN TAXPAYERS UNDER THE SECTION BEFORE THE EXAMINATION MAY TAKE PLACE, TO PROVIDE THAT IF THE TAXPAYER SO REQUESTS, THE COMMISSION SHALL DELAY THE EXAMINATION FOR A PERIOD OF UP TO THIRTY DAYS FROM THE DATE OF THE WRITTEN NOTICE AND TO REQUIRE THE COMMISSION TO NOTIFY THE TAXPAYER IN WRITING THAT HE MAY MAKE THIS REQUEST, AND TO PROVIDE THAT THE NOTICE AND THIRTY-DAY WAITING PERIOD PROVISIONS SHALL NOT APPLY IF THERE IS REASONABLE RATHER THAN CONCLUSIVE EVIDENCE THAT THE TAXPAYER IS ABOUT TO DESTROY OR REMOVE THE RECORDS OR OTHERWISE MAKE THEM UNAVAILABLE FOR INSPECTION.

Be it enacted by the General Assembly of the State of South Carolina:

Commission may examine certain documents

SECTION 1. Section 12-7-2270 of the 1976 Code, as amended by Section 34 of Part II of Act 199 of 1979, is further amended to read:

"Section 12-7-2270. The Commission, for the purpose of ascertaining the correctness of any return or for the purpose of making an estimate of the taxable income of any taxpayer, may upon reasonable written notice to the taxpayer examine or cause to be examined by any agent or representative designated by it for that purpose any books, papers, records, or memoranda bearing upon the matters required to be included in the return. Provided, that if the taxpayer so requests, the Commission shall delay the examination for a period of up to thirty days from the date of the written notice, and the Commission shall also notify the taxpayer in writing that he may make this request. The provisions of this section shall not apply to nonresident taxpayers. Provided, the requirement of reasonable written notice and the thirty-day waiting period shall not apply if there is reasonable evidence that the taxpayer is about to destroy or remove the books, papers, records, or memoranda from the State or otherwise make them unavailable for inspection."

Time effective

SECTION 2. This act shall take effect upon approval by the Governor.