Form I-338 - Composite Return Affidavit (Page 3 of 3) in pdf

Purpose of the I-338 Composite Return Affidavit

If the participant completes the I-338 affidavit, the partnership, S-Corporation or LLC can use either Option 1 or 2 under

Method A. Without an I-338 affidavit, the partnership, S-Corporation or LLC is limited to Method B, and the “safe harbor”

is not available for computing active trade or business income.

Who May Execute the I-338 Affidavit

Any individual, trust or estate who is a nonresident partner, shareholder of an S-Corporation, or member of an LLC taxed

as a partnership or S-Corporation who has no source of income taxable to South Carolina other than from the partnership,

S-Corporation or LLC, may complete I-338. The affidavit should be completed and signed by the participant or by an

agent acting on the participant’s behalf.

Where and When to Execute the I-338 Affidavit

Partner, S-Corporation Shareholder and LLC Member Instructions:

A qualifying participant should submit the fully completed I-338 affidavit directly to the partnership, S-Corporation or LLC.

The I-338 affidavit is not valid for subsequent years and must be resubmitted to the entity each year.

Do not mail to the South Carolina Department of Revenue

Partnership, S-Corporation and LLC Instructions:

The partnership, S-Corporation or LLC must remit all I-338 affidavits to the South Carolina Department of Revenue along

with the composite return (SC1040 South Carolina Individual Income Tax Return or SC1041 Fiduciary Income Tax

Return).

Our Internet address is:

Social Security Privacy Act

It is mandatory that you provide your social security number on this tax form. 42 U.S.C 405(c)(2)(C)(i) permits a state to use an

individual's social security number as means of identification in administration of any tax. SC Regulation 117-201 mandates that any

person required to make a return to the SC Department of Revenue shall provide identifying numbers, as prescribed, for securing

proper identification. Your social security number is used for identification purposes.

The Family Privacy Protection Act

Under the Family Privacy Protection Act, the collection of personal information from citizens by the Department of Revenue is limited to

the information necessary for the Department to fulfill its statutory duties. In most instances, once this information is collected by the

Department, it is protected by law from public disclosure. In those situations where public disclosure is not prohibited, the Family

Privacy Protection Act prevents such information from being used by third parties for commercial solicitation purposes.

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Form I-338 - Composite Return Affidavit Page 3