Two men were arrested Tuesday by SC Department of Revenue officials following an ongoing investigation into an income tax refund scam in the Charleston area.
Luther Smalls and Smarty Campbell, both of Mount Pleasant, SC, were detained at the Charleston County Detention Center for separate charges of assisting in the preparation of a false return and forgery.
Upon review of Luther Smalls’ 2008 income tax returns, it was determined that Smalls filed his income taxes via a tax preparer and used a fraudulent W2 form from an employer who he did not work for during that time. By submission of the fraudulent W2 form, Smalls received an overstated fraudulent SC income tax refund of $713. If convicted of the two charges, Smalls, 49, could face up to $500 in fines and/or 15 years in prison.
For one charge of assisting in the preparation of a false return and one count of forgery, Smarty Campbell is facing charges of up to $500 in fines and/or 10 years in prison. Campbell, 64, submitted to a tax preparer his 2009 income tax returns containing a W2 form from a company in which he was never employed. By use of the fraudulent income tax return, Campbell received a state tax refund of $474 to which he was not entitled.
Leigh Anne Hoppe was arrested today for failure to file state income tax returns for years 2007, 2008 and 2009.
Hoppe, 48, is a timeshare agent in Hilton Head and earned income of $190,465 during years 2007 – 2009 with a tax liability of $8,944. Hoppe was required to file a South Carolina income tax return on or before April 15 for these tax years as required by law.
If convicted of the charges, Hoppe could face up to three years in prison and/or fines of up to $30,000.
A Mount Pleasant man is being held at the Charleston County Detention Center following his arrest today for one count of assisting in the preparation of a false return and one count of forgery.
Robert Vanderhorst, IV, 25, is currently being held pending a bond hearing and if charged, could face penalties of up to $500 in fines and/or 15 years in prison, according to investigators from the SC Department of Revenue.
Upon review of Vanderhorst’s 2009 income tax returns, SCDOR determined that Vanderhorst filed via a tax preparer and used a fraudulent W2 form from an employer who he did not work for during that time. By submission of the fraudulent W2 forms, Vanderhorst received an overstated fraudulent SC income tax refund of $679.
Darcell Lockwood was arrested today by SCDOR investigators for assisting in the preparation of a fraudulent return and forgery.
Lockwood, 36, is currently being held at the Charleston County Detention Center pending a bond hearing. The Mount Pleasant Police Department assisted with the arrest.
The arrest follows an ongoing investigation of a tax refund scam involving numerous individuals in the Charleston area. After reviewing Lockwood’s 2009 income tax returns, the SCDOR investigation revealed that Lockwood, a Mt. Pleasant resident, submitted to a tax preparer a fraudulent W2 form although Lockwood did not actually work for the employer listed.
The use of the W2 form resulted in Lockwood receiving a fraudulent SC income tax refund in the amount of $717, to which he was not entitled. If convicted of the charges, Lockwood could face up to $500 in fines and/or 15 years in prison.
The South Carolina Department of Revenue (SCDOR) is currently investigating a tax refund scam involving numerous individuals in the Mt. Pleasant and Charleston area, and another arrest was made this morning.
Tameka Coakley was arrested today for one count of assisting in the preparation of a false tax return and one count of forgery. If convicted of the charges, Coakley could face penalties of up to $500 in fines and/or 10 years in prison.
Upon reviewing Coakley’s 2008 income tax returns, investigators from SCDOR determined Coakley’s state tax return was filed by a tax preparer using fraudulent W2 forms provided by Coakley from her employer. The investigation revealed that Coakley worked for this employer in 2008, but she manipulated the wages and withholding information and thus received a SC income tax refund of $685.
Tameka Coakley is the fourth individual thus far to be arrested by SCDOR for tax fraud surrounding this tax refund scam in the Charleston area.
Columbia, SC — Less than a month away in South Carolina is the annual Sales Tax Holiday – the state’s popular three-day sales and use tax break on traditional back-to-school purchases.
The 13th annual Sales Tax Holiday, which was implemented in 2000, will begin Friday, August 3 at 12:01 a.m. and tax-exempt purchases can be made through Sunday, August 5 at midnight. While providing taxpayers with an exemption on the 6% statewide sales tax as well as any applicable local taxes, the tax-free weekend also benefits in-state businesses by urging taxpayers to do their back-to-school shopping in South Carolina.
During this time, taxes will not be imposed on clothing, shoes, school supplies, book bags, computers, printers, bedspreads and linens, and more. Nonexempt items during the weekend include the sales of jewelry, cosmetics, eyewear, furniture, or items placed on layaway. Portable devices whose function is primarily used for telephone calls, listening or downloading music, watching videos, or reading books, are not exempt during the tax-free weekend. However, with the growing popularity of computer tablets, portable devices that have computing functions and allow users to access multiple software applications are considered computers and are therefore tax-exempt, provided they do not allow users to make telephone calls. More information on the exemption of computer tablets can be found at www.sctax.org.
The popularity of the tax-free weekend has made it the third busiest shopping period of the year, surpassed only by the weekends after Thanksgiving and before Christmas, as South Carolina shoppers save approximately $3 million during the tax-free weekend.
For more information about this year’s Sales Tax Holiday, including an example list of exempt and nonexempt items as well as a listing of frequently asked questions, visit the SC Department of Revenue website, www.sctax.org, under the “What’s New” section.
If you need assistance planning your tax free weekend shopping please feel free to call Tax On Wheels, LLC at 803 732-4288.
During the individual income tax filing season, there is often an increase in tax-related scams.
The SC Department of Revenue is reminding taxpayers to be aware of fraudulent phone calls, text messages, emails or other forms of communication that may ask for personal identifying information such as birth date, social security numbers, address, mother’s maiden name, driver’s license number or other private information.
The SC Department of Revenue typically contacts taxpayers via standard mail and then a phone call for follow up when requested. Occasionally communication will be made by email if an employee is responding to a taxpayer’s inquiry. If a taxpayer contacts DOR, an employee may then ask for personal information in order to access their files.
Taxpayers should be cautious during this tax season of persons contacting them to offer tax advice or help with filing their taxes.
Individuals with concerns can contact the SC Department of Revenue directly at (803) 898-5000 or visit www.sctax.org.
The 2012 tax season has begun and the South Carolina Department of Revenue (SCDOR) is urging taxpayers to file their income tax returns electronically.
South Carolina is a national leader in the percentage of its taxpayers that file electronically. Of the 2.1 million returns processed in 2011, 1,692,965 were filed electronically with taxpayers receiving an average refund of $837.
Electronic filers may receive a refund in as little as 10 days, as compared to those who file a paper return, which could take an average of three weeks to receive a refund.
In South Carolina, taxpayers can file their state income tax return electronically by purchasing and using commercial tax preparation software, having a professional tax preparer file for them, or using Free File through SCDOR’s website.
Qualified SC taxpayers can take advantage of free tax preparation services available through Free File in order to electronically prepare and file their state and federal income tax returns simultaneously for free. Since its inception in 2003, the Free File Alliance has offered 70 percent of taxpayers free access to leading commercial tax preparation software. While users benefit from Free File’s automatic check for accuracy, the program is also user-friendly, completely paperless, safe and secure. Taxpayers with an income of $57,000 or less can visit www.sctax.org and click on the Free File icon to e-file their return with one of the six vendors offered.
New in 2012, taxpayers receiving a state income tax refund will be mailed a prepaid debit card containing the amount of their refund, in place of a paper check. In addition, taxpayers have the option to choose direct deposit or to receive a paper check if they do not wish to receive a debit card. Direct deposit is the refund method preferred by SCDOR.
To learn more about filing your taxes electronically, or to check on the status of your refund, visit www.sctax.org or call the individual income tax section of SCDOR at (803) 898-5709.
You may call Tax On Wheels, LLC at 803 732-4288 if you need assistance with state or federal income tax issues.
We previously made you aware of the South Carolina Department of Revenue’s emphasis on collection of use tax in this January 15, 2012 post. The SCDOR has now issued the following announcement concerning Use Taxes and filing your individual income tax return.
Use tax informational pages available online
During individual income tax season, South Carolina taxpayers are reminded to report and remit use tax on all purchases in which no sales tax has been paid.
Use tax should be remitted on goods purchased from out-of-state vendors or from online retailers for consumption or use in South Carolina.
Sales tax is imposed on all retail sales within South Carolina and in-state retailers are required to remit the sales tax to the SC Department of Revenue. The use tax is imposed on out-of-state purchases of goods for use, consumption or storage in South Carolina. If the out-of-state retailer does not collect the tax to submit to South Carolina, the taxpayer should then report and remit use tax on those items. If the taxpayer purchases goods in another state for use in South Carolina, the taxpayer is allowed a credit for the other state’s tax and would only owe the difference.
How do I pay use tax?
When paying use tax, taxpayers are required to pay the state tax rate of 6% as well as any applicable local option taxes, which vary by county.
Use tax can be remitted in one of three ways: taxpayers can report use tax on their Individual Income Tax Return Form SC 1040; or use tax can be remitted throughout the year via DOR-ePay, an electronic payment system available online, or via a UT-3 Form, submitted to DOR.
Why is the use tax important?
Use tax is important to the state of South Carolina as it protects local businesses from an economic disadvantage with out of state retailers. The state’s collections from the sales and use tax fund South Carolina’s public school system.
To learn more about South Carolina’s sales and use tax, and to submit use tax on your purchases, visit www.sctax.org and click on the ‘Use Tax’ icon.
The South Carolina Department of Revenue (SCDOR) will honor the April 17th individual income tax filing deadline set by the Internal Revenue Service.
Since April 15, 2012 falls on a Sunday, and Emancipation Day in Washington, DC (a DC-only holiday) is observed on Monday, April 16th, the official filing deadline will move to the following business day which is Tuesday, April 17th.
SCDOR will honor the federal due date but will not change forms to reflect the April 17th deadline. This deadline applies to any income tax return or payment normally due on April 15th; it also applies to the deadline for requesting a tax-filing extension.
South Carolina taxpayers who file and pay electronically have until May 1, 2012 to do so without penalty or interest being assessed. The May 1st deadline does not apply to federal returns or to SC taxpayers who file paper returns.