South Carolina Administrative Law Court Tax Appeals

The South Carolina Administrative Law Court is where most state tax disputes go when they cannot be resolved with the South Carolina Department of Revenue. An Administrative Law Court tax appeal is a contested case heard by an administrative law judge who is independent of SCDOR. South Carolina Tax Law Firm PA represents individuals and businesses in Administrative Law Court tax cases, from the request for a contested case hearing through trial and, if needed, an appeal to the South Carolina Court of Appeals.

Call (803) 753-7376 or request a consultation. Have the SCDOR Department Determination in front of you, including the date it was sent. The deadline to go to the Administrative Law Court is short.

What the Administrative Law Court is

The Administrative Law Court is an independent court in the executive branch of South Carolina government, located in Columbia. It is not part of SCDOR. Its administrative law judges hear contested cases involving many state agencies, including tax disputes with the Department of Revenue. In a tax case, SCDOR is a party, just like you, and must present its evidence and arguments to the judge.

The judge hears the case fresh. The judge is not limited to reviewing whether the Department’s determination was reasonable, but decides the facts and the law based on the evidence presented at the hearing. That makes the Administrative Law Court the place where the record for any later appeal is built.

Tax cases the Administrative Law Court hears

• Proposed assessments. Income, sales and use, withholding, corporate, and other state taxes, after an SCDOR protest ends in a Department Determination.
• Refund denials. Refund claims denied by the Department after protest.
• License matters. Denials, suspensions, and revocations of retail, alcohol, and other licenses issued by SCDOR.
• Residency disputes. Whether you were a South Carolina resident and owed tax on all your income.
• Property tax appeals. Appeals of property valued by SCDOR, and appeals from a county board of assessment appeals for property valued by a county assessor.

How a case gets to the Administrative Law Court

Most state tax cases follow the path set by the South Carolina Revenue Procedures Act. SCDOR proposes an assessment or denies a refund, you file a written protest within 90 days, and the Department’s appeals staff reviews it. If the protest does not resolve, the Department issues a Department Determination. You then have 30 days after the determination was sent to request a contested case hearing at the Administrative Law Court (S.C. Code 12-60-460). If you do not, the determination becomes final. Our SCDOR appeals page explains the protest stage in detail.

How an Administrative Law Court tax case works, step by step

1. Request a contested case hearing. We file the request with the Administrative Law Court within 30 days after the Department Determination was sent, and serve it on SCDOR.
2. Decide on small claims. If no more than $10,000 in tax and penalties is in dispute, we discuss whether to designate the case as a small claims case, which is faster but cannot be appealed (S.C. Code 12-60-520).
3. Assignment and scheduling. The case is assigned to an administrative law judge, who sets deadlines for filings, discovery, and the hearing.
4. Discovery. Both sides exchange documents, written questions, and, where useful, depositions, so each knows the other’s evidence before the hearing.
5. Motions and settlement. Many cases narrow or settle before trial. Some legal issues can be decided on motions without a full hearing.
6. Prehearing filings. We prepare the witness and exhibit lists, stipulations of fact, and the legal positions the court requires before the hearing.
7. The contested case hearing. A trial before the administrative law judge, without a jury. We present witnesses and documents, cross-examine SCDOR’s witnesses, and argue the law.
8. The final order. The judge issues a written order with findings of fact and conclusions of law.

Appealing an Administrative Law Court decision

Either side can generally appeal a final order of the Administrative Law Court to the South Carolina Court of Appeals (S.C. Code 1-23-610), except in a small claims case. The appeal is decided on the record built at the Administrative Law Court, and the Court of Appeals generally will not overturn the judge’s findings of fact if substantial evidence supports them. That is why the evidence and arguments presented at the hearing matter so much. The deadline to appeal is short, so it should be considered as soon as the order is issued.

Preparing a strong Administrative Law Court case

• Build the factual record with documents and witnesses, not just argument
• Identify the South Carolina statutes, regulations, and court decisions that control each issue
• Use discovery to understand SCDOR’s position and the auditor’s calculations
• Address penalties separately from the tax, including reasonable cause
• Preserve every issue for a possible appeal

State tax cases and federal tax cases

The Administrative Law Court hears South Carolina tax disputes only. Federal tax disputes with the IRS go to IRS Appeals and the U.S. Tax Court or another federal court. When a case involves both, for example a state assessment that follows an IRS audit, we coordinate the federal and state cases so the positions are consistent and the deadlines are met.

Attorney experience

The firm is led by attorney Daniel P. Knudsen, who has represented taxpayers in tax controversies for more than 10 years, including tax litigation. Before entering private practice, Daniel represented taxpayers before the IRS at a Low Income Taxpayer Clinic funded through the IRS Taxpayer Advocate Service grant program, and had two employment experiences in the Executive Division of another state’s department of revenue.

Daniel holds an LL.M. in Taxation and certificates in International Taxation and State and Local Taxation from Georgetown University Law Center, and completed the Tax Litigation Training Program, a professional certificate program, at Villanova University Charles Widger School of Law. Every Administrative Law Court case is handled by an attorney from the hearing request through final resolution.

Administrative Law Court representation throughout South Carolina

Our office is in Spartanburg, and we represent clients in Administrative Law Court tax appeals throughout South Carolina, including Greenville, Columbia, Charleston, North Charleston, Mount Pleasant, and Rock Hill. The Administrative Law Court and SCDOR headquarters are both in Columbia.

Administrative Law Court tax appeal questions

How long do I have to go to the Administrative Law Court?

Generally 30 days after the Department Determination was sent. Count from the date on the determination, not the day you received it, and do not wait until the last day.

Do I have to pay the tax before going to the Administrative Law Court?

Generally no. A timely protest and request for a contested case hearing generally keep the assessment from becoming final while the case is pending. Interest keeps running on any amount you are finally found to owe.

Can I go straight to the Administrative Law Court without protesting?

Generally no. Most tax cases must go through the written protest and Department Determination first. Skipping the protest or missing its 90-day deadline usually means losing the right to a hearing on that assessment.

What is a small claims tax case?

When no more than $10,000 in tax and penalties is in dispute, you can generally designate the case as a small claims case when requesting the hearing. The process is simpler and faster, but the decision is final and cannot be appealed by either side.

Can I represent myself at the Administrative Law Court?

Individuals can represent themselves, but a contested case is a trial with rules of evidence and procedure, and SCDOR is represented by attorneys. Businesses generally need an attorney. Because any appeal is decided on the record from this hearing, it is usually the most important stage to have counsel.

Related tax controversy services

• SCDOR appeals and protests
• SCDOR audits
• SCDOR collections, liens, and wage garnishment
• South Carolina residency audits
• U.S. Tax Court litigation

Talk to a South Carolina Administrative Law Court tax attorney

If you received an SCDOR Department Determination or already have a case pending at the Administrative Law Court, call (803) 753-7376 or request a consultation. Tell us the tax type, the periods involved, and the date on the determination. Please don’t include confidential details in the contact form. Submitting it does not create an attorney-client relationship.

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South Carolina Tax Law Firm PA is a private law firm and is not affiliated with the South Carolina Administrative Law Court, the South Carolina Department of Revenue, the IRS, or any government agency. Attorney responsible for this content: Daniel P. Knudsen, 405 S. Pine St., Suite F, Spartanburg, SC 29302. This page provides general information, not legal advice. Every case depends on its own facts, and no particular outcome can be promised.

Reviewed by Daniel P. Knudsen, attorney, October 2026.