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Fazzio Law Offices

Has Your Driver's License Been Suspended for Unpaid NYS Tax?

HAS YOUR DRIVER’S LICENSE BEEN SUSPENDED FOR NYS TAX?

If you owe more than $10,000 in back taxes and are not currently under an Installment Agreement with New York State, you may receive a “Notice of Proposed Driver License Suspension Referral” under New York Tax Law section 171-v(5).

It is possible to file a petition to the New York State Division of Tax Appeals to protest the suspension referral.

Under New York Tax Law section 171-v(5) a taxpayer may challenge suspension or referral on the grounds that:

  1. The individual is not the tax debtor;
  2. The past-due tax liabilities were satisfied;
  3. The taxpayer’s wages are being garnished for other reasons;
  4. The license is a commercial license; or
  5. The department incorrectly found that the taxpayer has failed to comply with the terms of a payment arrangement made with the commissioner more than once within a twelve month period

Thus, if the taxpayer is currently under an Installment Agreement, Offer-in-Compromise, or Income Execution, or has made reasonable efforts to enter into one, the taxpayer may be able to avoid suspension.

Of course, it is best to be proactive and dealing with these matters before a referral of suspension occurs is always best.  An ounce of prevention is worth a pound of cure.

http://law.justia.com/codes/new-york/2013/tax/article-8/171-v

http://www.courthousenews.com/2014/10/02/72036.htm