Governor Andrew M. Cuomo, on August 5, 2013, announced a new initiative to encourage individuals who owe significant back taxes to pay their bills. Under the new program, a New York State driver license can be suspended when a taxpayer’s past-due tax liability exceeds $10,000. This crackdown is a result of new legislation introduced as part of the Executive Budget and was signed into law earlier this year.
Governor Cuomo expressly stated that tax scofflaws who intentionally decide to not abide by the same rules as everyone else are simply not entitled to the same privileges as other law abiding citizens. The worst offenders are putting an unfair burden on the overwhelming majority of New Yorkers who are hard working, law-abiding taxpayers. Thus, by enacting these additional consequences, the State can now receive additional revenues owed and keep scofflaws off the very road they use and refuse to maintain. Even if you cannot full pay their tax liability, the state is willing to set up a payment plan to suit your budgetary constraints in an effort to satisfy the debt.
The State Department has already begun sending out suspension notices to scofflaws. The first round of 16,000 suspension notices were dispatched as early as last week to delinquent taxpayers, who have 60 days from the mailing date of the notice to arrange payment with the Department. If the taxpayer fails to do so, the Department of Motor Vehicles will send a second letter providing an additional 15 days to respond. If the delinquent taxpayer again fails to arrange payment, the license is suspended until the debt is paid or a payment plan is established.
If you drive while the suspension is in effect you will be subject to arrest and penalties. Those with a suspended license can, however, apply for a restricted license that allows them to drive to work, and return directly home.
In New York State, businesses and individuals who voluntarily meet their tax responsibilities pay 96% of taxes. The remaining 4% is collected through the Tax Department’s audit, collections and criminal investigations programs. Through enforcement programs, such as suspension of driver licenses, the Department ensures fair tax administration for all New Yorkers. The new initiative is estimated to increase State collections by $26 million this fiscal year and as much as $6 million annually thereafter.
If you owe more than $10,000 in arrears and drive, it is within your best interest to contact the State Department and discuss your tax delinquency.
To contact the state, got to www.tax.ny.gov or call 518-862-6000 to make arrangements to settle your debt. If you feel you need assistance with this problem, please contact our office.
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