Adding to the misery of owing taxes in New York States, is the year old the drivers license revocation initiative passed by Governor Coumo on March 2013. Individuals who owe more than $10,000 in state taxes started to receive notices in August 2013.
If you fall in this category An initial notice will be sent to you as the taxpayer and there is 60 days given to respond. If they do not respond within 60 days to the first notice then well receive a second notice that allows them an additional 15 days to respond and set up an installment agreement with New York State. If the taxpayer fails to respond to the second notice, their license will be suspended until the debt is paid off. If there is more than one missed payment in a 12 month period their license can be suspended again.
Exemptions to Law
However, there are exemptions to this law. Drivers who have commercial licenses are exempt and those that are already subject to wage garnishments for child and spousal support are exempt.
If your license becomes suspended, taxpayers will have the opportunity to apply for a restricted license which only allows them to drive to and from work.
Ways to Avoid Suspension
To avoid this added inconvenience, you should immediately respond to any notice from
New York State Tax. Most average size tax debts can be placed into an installment agreement. Delays often can occur when trying to engage in negotiations with the Tax Department. Monthly budgetary information must be completed. Lf you are non-compliant with regards to past due or unfiled returns, this will delay the agreement as well. So plan on having all returns filed whenthe plan is setup.