March 17, 2015: Appointed by Governor Haley in July of 2014 as Director of the South Carolina Department of Revenue (SCDOR), Rick Reames quickly transitioned from private sector tax attorney to public sector tax policy executor. His focus is to ensure the state taxation and collection system is fair to all, and that no one carries the burden for others. This generally translates into ensuring “voluntary compliance” with the state’s existing tax and regulatory environment.
SCDOR is a cabinet agency of the Governor’s office, with approximately 800 employees and satellite offices across the state, including a service center near Citadel Mall. Their biggest task is to collect the revenue on which the state runs – basically the general fund and funds paid to the state but allocated to local governments, such as 1 cent sales tax. Mr. Reames noted that Charleston County represents a disproportionate share of the state’s income and property values. For example, county residents filed 8% of SC income tax returns but paid 12% of the tax last year.
The agency also is charged with licensing and regulating the sale of alcohol. Violators are dealt with by the State Law Enforcement Division, or SLED. SCDOR does have its own criminal enforcement division, however, with 12 licensed law enforcement officers who investigate tax evasion.
Mr. Reames has made security of the agency’s documents and our tax records a priority. Protecting against identity theft, fraud, and other breaches are woven into the fabric of the agency. Public service, responsiveness and efficiency have been the other hallmark of his term. This includes measuring all core functions to identify how long processes take and identify areas for improvement.
Several projects are underway, including a new tax processing system that is in the first year of a four-year implementation and a new website. Noting the national problem of fraudulent claims via electronic filing, Mr. Reames stated that $125 billion in questionable returns were paid by the IRS in 2014. South Carolina’s focus this year is not just getting a return processed as quickly as possible, but on being sure it’s going to the right person.
— Tammy Coghill