… (1) a taxpayer owes $10,000 or more in taxes, penalties, or interest, and (2) no collection resolution is in place (such as an installment payment agreement, income execution, or offer in compromise). When New York State identifies delinquent taxpayers, it sends them a notice informing them that they have 60 days to enter into a collection resolution with the State. If there is no resolution within 60 days, the State will notify the Department of Motor Vehicles (DMV) of the delinquent taxpayer. DMV, in turn, will send a further notice to the taxpayer informing him/her that, unless he/she addresses the tax liabilities within 15 days, his/her license will be suspended.
Because of the short timeframe, it is crucial for taxpayers to act promptly if they get a notice. In order to avoid losing their license, they must address their tax problems. Suspensions can be stopped when taxpayers pay or reach a payment plan, such as an installment payment agreement, income execution, or offer in compromise. Each one of these has specific conditions that must be met for the taxpayer to qualify.
In addition, for eligible taxpayers, there are exceptions to the program. For example, commercial drivers are not subject to driver’s license suspension. In addition, those who already have a wage garnishment in place to pay child support, or have an agreement with the collection arm of child support, are also exempt. Other exceptions include taxpayers who are seeking innocent spouse relief or those for whom enforcement of past liabilities has been stayed by a petition in Bankruptcy. Notably, the law contains no exception for provable hardship. New York State will allow limited suspensions in some cases, such as to allow certain trips to and from work.
If you owe back taxes to New York State, contact us for assistance in resolving your driver’s license suspension.