S.C. Code Regs. 117-202 — Definitions; Reimbursement for Costs Incurred in Complying with Summons

Section 1. For purposes of this regulation the words terms and phrases when used herein shall
have the meaning ascribed thereto.
(a) A ''taxpayer'' is a person, firm, corporation or other entity with respect to whose income, sales
or business the summons is issued.
(b) A ''third party'' is the person, firm, corporation or other entity upon whom the summons is
served, other than:
1. a taxpayer; or
2. an officer, employee, agent, accountant, or attorney of a taxpayer who, at the time the
summons is served, is acting as such.
(c) ''Third party records'' are books, papers, records or other information in which the taxpayer
has no proprietary interest at the time the summons is served.
(d) ''Directly incurred costs'' are those incurred solely, immediately and necessarily as a conse-
quence of searching for, reproducing or transporting records in order to comply with a summons.
Proportionate allocation of fixed costs (overhead, equipment depreciation, etc.) is not considered to
be directly incurred. However, where a third party's records are stored at an independent storage
facility that charges the third party a fee to search for, reproduce or transport particular records
requested, such fees are considered to be directly incurred by the summoned third party.
(e) ''Search Costs'' include only the amount of time incurred in locating and retrieving records or
information.
(f) ''Reproduction Costs'' are those incurred in making copies or duplicates of summoned
documents, transcripts and other similar material.
(g) ''Transportation Costs'' are limited to:
1. Costs incurred to transport personnel to locate and retrieve records or information
requested; and
2. Costs incurred solely by the need to convey the summoned material to the place of
examination.
Section 2. A third party in compliance with a summons is entitled to payment as herein provided
for directly incurred costs for searching, reproducing or transporting such party's records, books or
papers. The payment shall be in accordance with the following:
1. For reproduction costs
(a) ten (10) cents for each page reproduced;
(b) the actual cost of each photograph, film, or other material reproduced.
2. For search costs
The amount of Five (5) Dollars per hour;
3. For transportation costs
The actual costs.
No payment will be made, however, until the third party satisfactorily complies with the summons and
submits an itemized bill reflecting a specific accounting for the search, reproduction and transportation
costs. The payment shall be made only to third parties and not to the taxpayer.