N.Y.
Tax Law Section 171-V
Enforcement of delinquent tax liabilities through the suspension of drivers’ licenses
(1)
The commissioner shall enter into a written agreement with the commissioner of motor vehicles, which shall set forth the procedures for the two departments to cooperate in a program to improve tax collection through the suspension of drivers’ licenses of taxpayers with past-due tax liabilities equal to or in excess of ten thousand dollars. For the purposes of this section, the term “tax liabilities” shall mean any tax, surcharge, or fee administered by the commissioner, or any penalty or interest due on these amounts owed by an individual with a New York driver’s license, the term “driver’s license” means any license issued by the department of motor vehicles, except for a commercial driver’s license as defined in Vehicle & Traffic Law § 501-A (Definitions)section five hundred one-a of the vehicle and traffic law, and the term “past-due tax liabilities” means any tax liability or liabilities which have become fixed and final such that the taxpayer no longer has any right to administrative or judicial review.(2)
The agreement shall include the following provisions:(a)
the procedures by which the department shall notify the commissioner of motor vehicles of taxpayers with past-due tax liabilities, including the procedures by which the department and the department of motor vehicles shall share the information necessary to identify individuals with past-due tax liabilities, which shall include a taxpayer’s name, social security number, and any other information necessary to ensure the proper identification of the taxpayer;(b)
the procedures by which the commissioner shall notify the department of motor vehicles that a taxpayer has satisfied his or her past-due tax liabilities, or has entered into an installment payment agreement or has otherwise made payment arrangements satisfactory to the commissioner, so that the suspension of the taxpayer’s driver’s license may be lifted; and(c)
any other matter the department and the department of motor vehicles shall deem necessary to carry out the provisions of this section.(3)
The department shall provide notice to the taxpayer of his or her inclusion in the license suspension program no later than sixty days prior to the date the department intends to inform the commissioner of motor vehicles of the taxpayer’s inclusion. However, no such notice shall be issued to a taxpayer whose wages are being garnished by the department for the payment of past-due tax liabilities or past-due child support or combined child and spousal support arrears. Notice shall be provided by first class mail to the taxpayer’s last known address as such address appears in the electronic systems or records of the department. Such notice shall include:(a)
a clear statement of the past-due tax liabilities along with a statement that the department shall provide to the department of motor vehicles the taxpayer’s name, social security number and any other identifying information necessary for the purpose of suspending his or her driver’s license pursuant to this section and subdivision four-f of section five hundred ten of the vehicle and traffic law sixty days after the mailing or sending of such notice to the taxpayer;(b)
a statement that the taxpayer may avoid suspension of his or her license by fully satisfying the past-due tax liabilities, by making payment arrangements satisfactory to the commissioner, or by demonstrating any of the grounds for challenge set forth in subdivision five of this section. Such statement shall include information regarding programs through which the taxpayer can pay the past-due tax liabilities to the department, enter into a payment arrangement or request additional information;(c)
a statement that the taxpayer’s right to protest the notice is limited to raising issues set forth in subdivision five of this section;(d)
a statement that the suspension of the taxpayer’s driver’s license shall continue until the past-due tax liabilities are fully paid or the taxpayer makes payment arrangements satisfactory to the commissioner; and(e)
any other information that the commissioner deems necessary.(4)
After the expiration of the sixty day period, if the taxpayer has not challenged the notice pursuant to subdivision five of this section and the taxpayer has failed to satisfy the past-due tax liabilities or make payment arrangements satisfactory to the commissioner, the department shall notify the department of motor vehicles, in the manner agreed upon by the two agencies, that the taxpayer’s driver’s license shall be suspended pursuant to subdivision four-f of Vehicle & Traffic Law § 510 (Suspension, revocation and reissuance of licenses and registrations)section five hundred ten of the vehicle and traffic law; provided, however, in any case where a taxpayer fails to comply with the terms of a current payment arrangement more than once within a twelve month period, the commissioner shall immediately notify the department of motor vehicles that the taxpayer’s driver’s license shall be suspended.(5)
Notwithstanding any other provision of law, and except as specifically provided herein, the taxpayer shall have no right to commence a court action or proceeding or to any other legal recourse against the department or the department of motor vehicles regarding a notice issued by the department pursuant to this section and the referral by the department of any taxpayer with past-due tax liabilities to the department of motor vehicles pursuant to this section for the purpose of suspending the taxpayer’s driver’s license. A taxpayer may only challenge such suspension or referral on the grounds that (i) the individual to whom the notice was provided is not the taxpayer at issue;(ii)
the past-due tax liabilities were satisfied;(iii)
the taxpayer’s wages are being garnished by the department for the payment of the past-due tax liabilities at issue or for past-due child support or combined child and spousal support arrears;(iv)
the taxpayer’s wages are being garnished for the payment of past-due child support or combined child and spousal support arrears pursuant to an income execution issued pursuant to Civil Practice Law & Rules Law § 5241 (Income execution for support enforcement)section five thousand two hundred forty-one of the civil practice law and rules;(v)
the taxpayer’s driver’s license is a commercial driver’s license as defined in Vehicle & Traffic Law § 501-A (Definitions)section five hundred one-a of the vehicle and traffic law;(vi)
the department incorrectly found that the taxpayer has failed to comply with the terms of a payment arrangement made with the commissioner more than once within a twelve month period for the purposes of subdivision three of this section;(vii)
the taxpayer receives public assistance or supplemental security income; or(viii)
the taxpayer demonstrates that suspension of the taxpayer’s driver’s license will cause the taxpayer undue economic hardship. However, nothing in this subdivision is intended to limit a taxpayer from seeking relief pursuant to an offer in compromise pursuant to subdivision fifteenth of § 171 (Powers and duties of commissioner of taxation and finance)section one hundred seventy-one of this article or from joint and several liability pursuant to § 654 (Relief from joint and several liability on joint return)section six hundred fifty-four of this chapter, to the extent that he or she is eligible pursuant to such section, or establishing to the department that the enforcement of the underlying tax liabilities has been stayed by the filing of a petition pursuant to the Bankruptcy Code of 1978 (Title Eleven of the United States Code).(6)
Notwithstanding any provision of this chapter to the contrary, the department may disclose to the department of motor vehicles the information described in this section that, in the discretion of the commissioner, is necessary for the proper identification of a taxpayer referred to the department of motor vehicles for the purpose of suspending the taxpayer’s driver’s license pursuant to this section and subdivision four-f of section five hundred ten of the vehicle and traffic law. The department of motor vehicles may not redisclose this information to any other entity or person, other than for the purpose of informing the taxpayer that his or her driver’s license has been suspended.(7)
Except as otherwise provided in this section, the activities to collect past-due tax liabilities undertaken by the department pursuant to this section shall not in any way limit, restrict or impair the department from exercising any other authority to collect or enforce tax liabilities under any other applicable provision of law.
Source:
Section 171-V — Enforcement of delinquent tax liabilities through the suspension of drivers' licenses, https://www.nysenate.gov/legislation/laws/TAX/171-V (updated Jul. 19, 2019; accessed Oct. 26, 2024).
