§ 171-V — Enforcement of delinquent tax liabilities through the suspension of drivers' licenses

New York § 171-V

• Jurisdiction: New York
• Law TAX: Tax
• Art. 8: Department of Taxation and Finance; Commissioner of Taxation and Finance

Text

§ 171-v. Enforcement of delinquent tax liabilities through the\nsuspension of drivers' licenses. (1) The commissioner shall enter into a\nwritten agreement with the commissioner of motor vehicles, which shall\nset forth the procedures for the two departments to cooperate in a\nprogram to improve tax collection through the suspension of drivers'\nlicenses of taxpayers with past-due tax liabilities equal to or in\nexcess of ten thousand dollars. For the purposes of this section, the\nterm "tax liabilities" shall mean any tax, surcharge, or fee\nadministered by the commissioner, or any penalty or interest due on\nthese amounts owed by an individual with a New York driver's license,\nthe term "driver's license" means any license issued by the department\nof motor vehicles, except for a commercial driver's license as defined\nin section five hundred one-a of the vehicle and traffic law, and the\nterm "past-due tax liabilities" means any tax liability or liabilities\nwhich have become fixed and final such that the taxpayer no longer has\nany right to administrative or judicial review.\n (2) The agreement shall include the following provisions:\n (a) the procedures by which the department shall notify the\ncommissioner of motor vehicles of taxpayers with past-due tax\nliabilities, including the procedures by which the department and the\ndepartment of motor vehicles shall share the information necessary to\nidentify individuals with past-due tax liabilities, which shall include\na taxpayer's name, social security number, and any other information\nnecessary to ensure the proper identification of the taxpayer;\n (b) the procedures by which the commissioner shall notify the\ndepartment of motor vehicles that a taxpayer has satisfied his or her\npast-due tax liabilities, or has entered into an installment payment\nagreement or has otherwise made payment arrangements satisfactory to the\ncommissioner, so that the suspension of the taxpayer's driver's license\nmay be lifted; and\n (c) any other matter the department and the department of motor\nvehicles shall deem necessary to carry out the provisions of this\nsection.\n (3) The department shall provide notice to the taxpayer of his or her\ninclusion in the license suspension program no later than sixty days\nprior to the date the department intends to inform the commissioner of\nmotor vehicles of the taxpayer's inclusion. However, no such notice\nshall be issued to a taxpayer whose wages are being garnished by the\ndepartment for the payment of past-due tax liabilities or past-due child\nsupport or combined child and spousal support arrears. Notice shall be\nprovided by first class mail to the taxpayer's last known address as\nsuch address appears in the electronic systems or records of the\ndepartment. Such notice shall include:\n (a) a clear statement of the past-due tax liabilities along with a\nstatement that the department shall provide to the department of motor\nvehicles the taxpayer's name, social security number and any other\nidentifying information necessary for the purpose of suspending his or\nher driver's license pursuant to this section and subdivision four-f of\nsection five hundred ten of the vehicle and traffic law sixty days after\nthe mailing or sending of such notice to the taxpayer;\n (b) a statement that the taxpayer may avoid suspension of his or her\nlicense by fully satisfying the past-due tax liabilities, by making\npayment arrangements satisfactory to the commissioner, or by\ndemonstrating any of the grounds for challenge set forth in subdivision\nfive of this section. Such statement shall include information regarding\nprograms through which the taxpayer can pay the past-due tax liabilities\nto the department, enter into a payment arrangement or request\nadditional information;\n (c) a statement that the taxpayer's right to protest the notice is\nlimited to raising issues set forth in subdivision five of this section;\n (d) a statement that the suspension of the taxpayer's driver's license\nshall continue until the past-due tax liabilities are fully paid or the\ntaxpayer makes payment arrangements satisfactory to the commissioner;\nand\n (e) any other information that the commissioner deems necessary.\n (4) After the expiration of the sixty day period, if the taxpayer has\nnot challenged the notice pursuant to subdivision five of this section\nand the taxpayer has failed to satisfy the past-due tax liabilities or\nmake payment arrangements satisfactory to the commissioner, the\ndepartment shall notify the department of motor vehicles, in the manner\nagreed upon by the two agencies, that the taxpayer's driver's license\nshall be suspended pursuant to subdivision four-f of section five\nhundred ten of the vehicle and traffic law; provided, however, in any\ncase where a taxpayer fails to comply with the terms of a current\npayment arrangement more than once within a twelve month period, the\ncommissioner shall immediately notify the department of motor vehicles\nthat the taxpayer's driver's license shall be suspended.\n (5) Notwithstanding any other provision of law, and except as\nspecifically provided herein, the taxpayer shall have no right to\ncommence a court action or proceeding or to any other legal recourse\nagainst the department or the department of motor vehicles regarding a\nnotice issued by the department pursuant to this section and the\nreferral by the department of any taxpayer with past-due tax liabilities\nto the department of motor vehicles pursuant to this section for the\npurpose of suspending the taxpayer's driver's license. A taxpayer may\nonly challenge such suspension or referral on the grounds that (i) the\nindividual to whom the notice was provided is not the taxpayer at issue;\n(ii) the past-due tax liabilities were satisfied; (iii) the taxpayer's\nwages are being garnished by the department for the payment of the\npast-due tax liabilities at issue or for past-due child support or\ncombined child and spousal support arrears; (iv) the taxpayer's wages\nare being garnished for the payment of past-due child support or\ncombined child and spousal support arrears pursuant to an income\nexecution issued pursuant to section five thousand two hundred forty-one\nof the civil practice law and rules; (v) the taxpayer's driver's license\nis a commercial driver's license as defined in section five hundred\none-a of the vehicle and traffic law; (vi) the department incorrectly\nfound that the taxpayer has failed to comply with the terms of a payment\narrangement made with the commissioner more than once within a twelve\nmonth period for the purposes of subdivision three of this section;\n(vii) the taxpayer receives public assistance or supplemental security\nincome; or (viii) the taxpayer demonstrates that suspension of the\ntaxpayer's driver's license will cause the taxpayer undue economic\nhardship.\n However, nothing in this subdivision is intended to limit a taxpayer\nfrom seeking relief pursuant to an offer in compromise pursuant to\nsubdivision fifteenth of section one hundred seventy-one of this article\nor from joint and several liability pursuant to section six hundred\nfifty-four of this chapter, to the extent that he or she is eligible\npursuant to such section, or establishing to the department that the\nenforcement of the underlying tax liabilities has been stayed by the\nfiling of a petition pursuant to the Bankruptcy Code of 1978 (Title\nEleven of the United States Code).\n (6) Notwithstanding any provision of this chapter to the contrary, the\ndepartment may disclose to the department of motor vehicles the\ninformation described in this section that, in the discretion of the\ncommissioner, is necessary for the proper identification of a taxpayer\nreferred to the department of motor vehicles for the purpose of\nsuspending the taxpayer's driver's license pursuant to this section and\nsubdivision four-f of section five hundred ten of the vehicle and\ntraffic law. The department of motor vehicles may not redisclose this\ninformation to any other entity or person, other than for the purpose of\ninforming the taxpayer that his or her driver's license has been\nsuspended.\n (7) Except as otherwise provided in this section, the activities to\ncollect past-due tax liabilities undertaken by the department pursuant\nto this section shall not in any way limit, restrict or impair the\ndepartment from exercising any other authority to collect or enforce tax\nliabilities under any other applicable provision of law.\n