NYS Tax Relief- Driver’s License Suspension

New York Taxpayers face a driver’s license suspension due to delinquent taxes.

The NYS tax laws were changed in 2013 to allow the State of New York to suspend the driver’s license of any individual who owes at $10,000 of delinquent taxes assessed against them. The tax department has discretion of whether they recommend suspension to the NYS DMV. Therefore, in some cases, you will find that you owe more than the minimum, but your license has not been suspended.

Here is the wording of the law

“(1) The commissioner shall enter into a written agreement with the commissioner of motor vehicles, which shall set forth the procedures for the two departments to cooperate in a program to improve tax collection through the suspension of drivers’ licenses of taxpayers with past-due tax liabilities equal to or in excess of ten thousand dollars.  For the purposes of this section, the term “tax liabilities” shall mean any tax, surcharge, or fee administered by the commissioner, or any penalty or interest due on these amounts owed by an individual with a New York driver’s license, the term “driver’s license” means any license issued by the department of motor vehicles, except for a commercial driver’s license..”

There are cases where your license will not be suspended (other than a CDL license), and that’s where 1) your income is being garnished at 10% by the state for unpaid taxes, 2) your under a child support order, or 3) receive either public assistance or supplemental social security income.

Notice of Suspension

The NYS Tax Department will send a Driver’s license Notice letter to taxpayers who owe more than $10,000 and include details of there tax debts with a form known as a Consolidated Statement of Tax Liabilities. Once the taxpayer receives the letter, they need to A) pay the balance owed, 2) provide proof they meet an exception (wages being garnished, bankruptcy, has a payment arrangement in place), or 3) shows that they are seeking innocent spouse relief. The taxpayer has sixty days to show this proof. If they do not, then the tax department notifies the DMV who issues an Order of Suspension and gives 15 days to resolve the issue before the license is suspended.

Once the suspension occurs, the taxpayer will not have access to the courts to resolve the action, so they need to react quickly to resolve the issue within the sixty day period. if the taxpayer enters into a payment agreement to avoid the suspension, the taxpayer must comply with the terms of the agreement, or they will license suspended. A taxpayer who has their license suspended may then request a restricted license. If the taxpayer is not currently licensed, then this law will preclude the right to obtain a license.

If the taxpayer believes that the suspended license will create a hardship, they can request relief by filing a Undue Economic Hardship Exemption from Driver’s License Suspension Program and DTF 5 Statement of Financial Condition.

If you owe Taxes to New York State, please contact us for assistance. We can also help if you’re dealing with an NYS income execution, wage garnishment, or other tax problems.

Attorney Timothy Hart

Timothy S Hart, the founding partner of the tax law firm of Timothy S. Hart Law Group, P.C. is both a New York Tax Lawyer & Certified Public Accountant. His area of expertise includes innovative solutions to solve your Internal Revenue Service and New York State tax problems, including tax settlements through the Federal and New York State offer in compromise programs, filing unfiled tax returns, voluntary disclosures, tax audits, and criminal investigations. [ Attorney Bio ]