South Carolina Lawmakers Approve Corporate Tax Audit Overhaul

South Carolina’s reputation for aggressive tax auditing would soften significantly under a bill approved Wednesday that limits the Department of Revenue’s authority to require combined reporting for corporate income tax returns.

Both chambers of the South Carolina Legislature approved S. 298, which would create a new audit framework for the department when determining taxable income for multistate corporations that apportion income to the state or have intercompany transactions. The new process would set procedural thresholds for determining when the department could impose an alternative apportionment methodology if it believes the standard formula fails to properly ...