How Can I Prevent Losing My New York Driver's License if I Owe Back Taxes?

Posted By Natasha Meruelo, Attorney at Law || 5-Aug-2015

New York drivers could face license suspension if they opt out of paying back taxes that total more than $10,000. More than 7,000 driver’s licenses had been suspended because of a law that was implemented in 2013 to encourage New Yorkers to stay on top of their taxes. Close to $60 million has been generated from the license suspensions of delinquent taxpayers.

The Consequences of Back Taxes

Do you owe back taxes? You can work with the state directly or consult with a Chapter 13 bankruptcy attorney to create a payment plan that is not only manageable for you but also keeps your debt under control. If you choose to deal with your tax debt outside of bankruptcy through an installment payment agreement, you may also have the option of applying for a restriced license that allows you to drive to and from work only, and return home immediately after.

The consequences of failing to address this issue can be severe. The state has the right to arrest and enforce severe penalties, which can include both jail time and fines against those who have been found driving without a license or a suspended license.

These penalties can be even worse if you have previously been arrested for driving with a suspended or revoked license, or if you have a prior criminal record. For the most part, this law does not intend to go after hardened criminals; rather, it serves as a message of caution to the thousands of regular, every day New Yorkers that very real penalties can result from choosing not to pay taxes.

How Should I Protect Myself?

As previously noted, those who owe back taxes that total more than $10,000 are targeted first and foremost. The state will generally give at least 75 days to pay whatever is owed or enter into a repayment arrangement. Otherwise, the individual's license is taken away. There is enough data to show that there are enough New Yorkers with high amounts of back taxes to warrant these laws.

Need more insight? Do not hesitate to speak with Natasha Meruelo, Attorney at Law if ever you have specific questions about addressing your tax debts. Our attorney can help you determine how best to manage your debt and provide counsel on nearly any complex financial situation.

We can be your resource for all things financial. Contact us to request a free appointment.

Categories: Taxes