Do you owe taxes to New York State and worry that you might lose your driver’s license? You may have heard stories of people who could not drive because they owed money to the state. This might sound scary, especially if you need to drive for work, family, or everyday errands. Remember, if you need help, a New York tax lawyer from Thorgood Law Firm can guide you.
Don’t let tax debt put the brakes on your life. Our attorneys can help you resolve your state tax issues before your driver’s license is suspended. Contact us today for a strategy to keep you on the road and address your tax obligations.
What Is the Law About Losing Your License Over Taxes in New York?
New York has a law called § 171-v (Enforcement of Delinquent Tax Liabilities Through the Suspension of Drivers’ Licenses). This law says the state can suspend your driver’s license if you owe a large amount of taxes—usually at least $10,000. Another part of the law, § 510 (Suspension, Revocation and Reissuance of Licenses and Registrations), explains how the Department of Motor Vehicles (DMV) can suspend your license when the tax department tells them you have not paid your taxes.
In short, if the New York State Department of Taxation and Finance believes you owe a lot of taxes and are not paying, they can work with the DMV to stop you from driving. This can happen for both personal and business taxes.
Why Would New York Suspend Your License?
The main reason is simple: the state wants to collect the money you owe. Driving is important to many people, so losing that right can make them take action faster. The law is a way for the tax department to pressure people to pay or make a payment plan.
Some taxpayers might ignore letters about unpaid taxes. But if they learn they could lose the ability to drive, they might pay attention and try to fix the problem. New York believes this policy helps the state collect unpaid taxes, which fund many public services.
How Much Do You Have to Owe?
Under § 171-v, the usual amount is $10,000 or more. If you owe less than this, the state generally will not suspend your license just because of unpaid taxes. But if you do owe at least $10,000 and have not made arrangements to pay, you could be at risk.
Keep in mind that interest and penalties can cause your debt to grow. If you owe $9,000 now, you could soon reach $10,000 if you do not handle the problem.
Will You Get a Warning First?
Yes, you should receive a letter telling you that you are at risk of losing your license. The state must give you time (often 60 days) to fix the issue before telling the DMV to suspend your license. This is important because it gives you a chance to work out a payment plan, pay the debt in full, or challenge the amount if you think it is wrong.
If you ignore this notice, the tax department can then let the DMV know you have not paid. That is when a suspension becomes very real.
What Can You Do if You Disagree With the Amount?
Sometimes people get letters saying they owe a certain amount, but they think the state’s numbers are wrong. If that happens, you can:
- Contact the tax department to ask for a review.
- Provide documents showing you do not owe as much as they say.
- Ask for a hearing if you have evidence the numbers are incorrect.
It is important to do this quickly. If you wait too long, the state may move forward with the suspension.
Do You Have Any Payment Options?
Yes. If you owe a large sum, you do not always have to pay it in one go. New York offers plans or agreements that let you pay over time. You might also qualify for a settlement (sometimes called an offer in compromise) if you can prove you cannot pay the full amount.
Below are ways to handle your debt before your license is suspended:
- Make a Payment Plan: Contact the tax department to see if you can pay a certain amount every month until the debt is gone.
- Pay Some of It Now: If you can pay part of the debt and show you have a plan for the rest, you might avoid suspension.
- Ask for a Settlement: If you have major financial problems, the state might agree to settle for less than you owe.
- Check for Errors: If you think the state’s math is off, get proof and ask for a correction.
A New York tax lawyer can help you pick which option is best for you. They can also talk to the tax department on your behalf.
What Happens If You Ignore the Notice?
If you do nothing when you get a warning, you run the risk of losing your license. Once the license is suspended, you will get a letter or find out when you cannot renew your license at the DMV. Driving while your license is suspended is illegal and can lead to serious penalties, including fines and possibly arrest if you get pulled over.
Remember that losing your license can affect your work, family obligations, and daily life. That is why it is so important to respond and take action.
Can Your License Be Suspended Even If You Are Making Payments?
If you set up a valid payment plan and keep up with the payments, the state usually will not suspend your license. The purpose of the law is to go after people who ignore their debts or refuse to pay. If you are making a real effort, New York should not take away your ability to drive.
But be careful: if you stop making payments or break the agreement, the state could move forward and suspend your license later.
How Do You Get Your License Back After Suspension in New York?
If your license has already been suspended, you must fix your tax debt or arrange a payment plan. Once you do that, the tax department will let the DMV know you have made things right. Then you can apply to have your license reinstated. Depending on how long it has been suspended, you may need to pay a fee or take care of other steps at the DMV, like paying a reinstatement fee.
Should You Hire a New York Tax Lawyer?
Dealing with tax issues can be stressful and confusing, especially when your ability to drive is on the line. A New York tax lawyer can:
- Help you figure out how much you really owe.
- Talk to the tax department for you.
- Work out a payment plan or settlement.
- Make sure your rights are respected.
If you are facing a license suspension, you want someone on your side who understands both tax law and the rules in New York.
How Can Thorgood Law Firm Help?
At Thorgood Law Firm in New York, we have spent over 25 years helping people solve tax problems. Our lawyers are experienced in dealing with New York State tax issues, the IRS, and other tax authorities. We know the stress that comes with owing money and the fear of losing your driver’s license.
Our New York tax lawyers handle:
- Offer In Compromise
- Installment Payments
- Penalty Abatements
- Unfiled Tax Returns
- Payroll Tax
- Criminal Tax
- Innocent Spouse Relief
- Sales Tax
- Liens, Levies & Wage Garnishments
- Audits
We try to find the best solution for each client’s unique situation. We do not use a one-size-fits-all approach. Instead, we listen to your story and find what will work for you.
Ready To Protect Your License in New York?
Yes, New York can take your driver’s license if you owe a lot of taxes. But there is hope. By acting fast, you can often set up a payment plan, prove the debt is wrong, or find another way to keep your license. Reach out to Thorgood Law Firm in New York if you need help. Call us today at 212-490-0704 or contact us online to talk to a New York tax lawyer.
We have helped people solve their tax troubles for more than 25 years. Let us help you keep your license and get back on track with your taxes. Do not wait until it is too late. Reach out now and protect your right to drive.
