Form Sc1065 - Schedule Sc-K - Partnership Return Tax Year 2013 (Page 3 of 7) in pdf

INSTRUCTIONS FOR PARTNERSHIP INCOME TAX RETURN

South Carolina Department of Revenue SC1065

(Rev. 7/16/13)

The references to line numbers and form numbers on federal income tax forms were correct at the time of printing. If they

have changed and you are unable to determine the proper line to use, please contact the Department of Revenue. These

instructions are to be used as a guide in the preparation of a South Carolina partnership income tax return and are not

intended to cover all provisions of the law.

CHANGE IN APPORTIONMENT METHOD

USE PRIOR YEAR FORMS FOR TAX YEARS BEGINNING BEFORE 2011.

A. Who Must File - Every partnership (including any multiple member LLC not taxed as a corporation), domestic or

foreign, doing business or owning property in South Carolina must file SC1065. Partnership income or loss is computed

in the same manner and on the same basis as for an individual. Taxpayers carrying on business in a partnership are liable

for income tax in their individual capacities. Each partner's return shall include his distributive share, whether distributed or

not, of the net income or loss of the partnership for the taxable year. If a partner and partnership have different taxable

years, the partner’s return shall include income or loss reported by the partnership during the partner’s taxable year.

B. Registration Information – A newly formed partnership can be registered by using the Business One Stop Online

Business Registration available at or by downloading and submitting form SCDOR-111 which is also

available through our website The SC partnership file number will be assigned upon completion of the

registration process.

C. Filing Requirements - File SC1065 and include the amount required to be withheld to the Department of Revenue

by the 15th day of the fourth month following the end of the partnership’s taxable year. Within the same deadline,

provide each nonresident partner with a federal Form 1099-MISC with "SC only" written at the top, showing the

amount of the nonresident partner's withholding. Withholding is not required for any partner participating in a

composite return, and for partners that provide an I-309 affidavit. Attach each SC1065 K-1. Tiered or layered

partnerships must withhold only once for activities of the partnership within South Carolina. Any related partnership must

attach a statement explaining any pass-through withholding and provide a 1099-MISC “for SC purposes only” to each

partner. Amend SC1065 whenever the Internal Revenue Service adjusts a federal form 1065. If payment is included, mail

to SC DEPARTMENT OF REVENUE, TAXABLE PARTNERSHIP, COLUMBIA, SC 29214-0036. If no payment is

included, mail to SC DEPARTMENT OF REVENUE, NONTAXABLE PARTNERSHIP, COLUMBIA, SC 29214-0037.

D. Balance Due With Return - Payment must be made for any balance due amount calculated on the return. Make

the check payable to the “SC Department of Revenue.” Write the file number or federal employer identification number

(FEIN) and “SC1065 and the year of the tax return” on the payment. Staple the payment to the front of the form in the

indicated area. NOTE: refunds cannot be claimed through SC1065. An overpayment must be claimed and refunded at

the partner level.

E. How To Obtain Past Year Forms – Past year SC1065 partnership forms can be found on our website

by clicking on Quick Links, Forms and Instructions, and then Past Years Tax Forms and Instructions.

F. Composite Filing - A composite return is a single nonresident individual income tax return filed by a partnership on

behalf of two or more nonresident partners who are individuals, trusts or estates. See SC form I-348 for instructions for

filing a composite return. This information can be found on our website in the Partnership tax forms and

instructions.

G. Extensions - A partnership may request an extension of time to file SC1065 by filing SC8736 by the 15th day of the

fourth month following the end of the partnership’s taxable year. When filing SC8736, include withholding of 5% of income

taxable to South Carolina on all nonresident partners. However, you are not required to withhold on behalf of partners that

(a) participate in a composite return, or (b) provide an I-309 affidavit stating that the taxpayer is subject to the jurisdiction

of the SC Department of Revenue and the courts of South Carolina for purposes of determining and collecting tax, interest

and penalties. Include all I-309s when filing SC8736. In lieu of SC8736, the Department of Revenue will accept a federal

extension. Attach a copy of the federal extension and file the tax return within the extended period.

H. Composite Extensions - In order to extend the time allowed for filing a composite return, file SC4868 using the

name and FEIN of the partnership, estimate the tax due, and pay the tax estimate on or before the 15th day of the 4th

month following the end of the partner’s taxable year. Do not use the SC8736 to extend the time allowed to file a

composite return, file SC4868 instead. For tax years after 2004, nonresident partners may participate in composite

returns even if they have other sources of income taxable to South Carolina. Disregard the other sources of income

taxable to South Carolina when preparing the composite return. For more detailed information, see SC Revenue

Procedure #92-5 on our website

Form Sc1065 - Schedule Sc-K - Partnership Return Tax Year 2013 Page 3

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