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South Carolina says top 467 income tax debtors owe state nearly $120 million

South Carolina's top tax delinquents owe the state enough money to run a city for a year, or pay for a road-widening project, or build a school or two.

That's nearly $120 million owed by 236 businesses and 231 individuals the S.C. Department of Revenue identified this week in listings of debtors the agency published online.

In most cases, it appears there's little chance the state will get the money.

"Before these names are published, the SCDOR has exhausted efforts to collect these debts," the agency stated.

"We’ve sent letters, made calls or attempted personal contact multiple times with no resolution," said a SCDOR fact sheet about the list. "At this point, a tax lien has been filed against everyone on this list, making these debts public information."

Having exhausted all efforts, as the agency says, a public shaming appears to be a long-shot, but SCDOR spokeswoman Ashley Thomas said some people and businesses did pay up before the list went public. It was meant to include 500 names, but lists 467.

The list of businesses includes many that went out of business years ago, such as Carolina Nurseries in Berkeley County, and many restaurants — including operators of Charleston-area Burger King locations that closed last year and area Subway franchises. There are 57 in the tri-county Charleston area on the list.

The individual debtors include some people who were sued years ago over investment schemes, or went to jail for criminal enterprises, or may have died in debt.

There are also some surprising names on the list, too. Verizon Business Network Services, part of telecom giant Verizon Communications, is listed as owing $631,406.98. 

"We are looking into why our name is on this list, but as of the moment we are unable to substantiate the claims," said Kate Jay, regional spokeswoman for Verizon. "We continue to look and, if the problem is real, we will work with the state to address it."

In at least one case the lists could easily cause some confusion.

No. 53 on DOR's list of top business debtors is Brecks Inc., located at 8510 Rivers Ave. in North Charleston, owing $313,466.10. That's a real headache for Troy Dion, who owns Breck's Steakhouse at 8510 Rivers Ave., North Charleston.

"The short answer is that we do not have anything to do with Brecks Inc," Dion said. "We are a separate and distinct entity from Brecks Inc. that has no overlap in ownership."

Breck's was a long-time North Charleston restaurant that closed in 2012 — an institution, with loyal customers and staff — so Dion kept the name when he bought the shuttered restaurant's fixtures and equipment and leased the same location. Later, Dion said he repeatedly had to convince both DOR and the Internal Revenue Service that his Breck's has no connection to the old Breck's.

"It is frustrating, but it is what it is, and I do use the name Breck's, so the guilt by association is an occupational reality," he said. "I did get a good bit of harassment from the IRS for about a year."

This isn't the first time DOR has published "top delinquent taxpayer" lists. That's been going on for years and was previously called Debtors' Corner.

The state annually seizes tax refunds owed to South Carolina taxpayers to collect unpaid medical debts, but it's much more difficult to collect tax debts owed by long-shuttered businesses and people who have no refunds to seize.

Reach David Slade at 843-937-5552. Follow him on Twitter @DSladeNews.