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Business License Hold for Tax Non-Payment in Maryland

As a business owner in the state of Maryland, you have an obligation to pay certain taxes. If you fail to pay those taxes the state has the authority to take certain punitive actions. In most cases, the state will impose financial penalties and interest, which can significantly increase your tax bill. However, the state can also target your business directly in an effort to persuade you to satisfy your tax liability. As a result, your business license could be in jeopardy if the state believes that you have not paid your taxes.

You Can't Renew Your Business License If You Owe Taxes

Business licenses have to be renewed periodically. When you submit your application to renew your license, the state or local agency in charge of issuing your specific license will check to see if you and your business have paid all taxes that are due. If there is a flag on your personal account or your business account, the agency will refuse to renew your license.

Agencies that will not renew a license if you have an unpaid tax liability include:

  • Department of Labor, Licensing, and Regulation
  • Department of Health and Mental Hygiene
  • Department of Natural Resources
  • Department of the Environment
  • Clerks of the Circuit Court, and
  • Comptroller of Maryland.
  • Motor Vehicle Administration

Any business license that is issued by a local or state government agency could be threatened if you have not paid your taxes in full.

Consequences of a Suspended Business License

You need a valid license with the state to operate a business in Maryland. Without your license, you will not be able to keep your doors open and make money. You will also not be able to enjoy the tax benefits that are extended to businesses in the state. These consequences will not only affect you, but also any employees, contractors, and customers that you may have. Your reputation and business could be ruined if you do not take immediate steps to resolve your tax dispute with the state.

How Can I Get My Business License Back?

There are three options for getting your business license back: pay, negotiate, or contest.

Pay: The first is to access the state's assessment and pay your tax bill. Once your taxes have been paid in full, the state will release the hold on your business license.

Negotiate: The state understands that you may not be able to pay your tax debt in full all at once. You can get your business license back if you enrolled in a verified repayment plan. Contact our Maryland tax attorneys for help negotiating a settlement with the state.

Contest: Just because the state believes that you owe taxes does not necessarily mean that you do. You have the right to contest the state's position and appeal your case. If you decide to contest your tax debt it will be important to have the help of an experienced Maryland tax attorney.

Contact Our Maryland Tax Attorneys for Assistance

If you have not been able to renew your business license because of a tax dispute with the state of Maryland, you need the help of a skilled attorney. At Gabaie & Associates, our lawyers are prepared to help you resolve your dispute with the state. We will review your case and identify the best strategy for your specific tax dispute. Call today to schedule a free case evaluation.

Contact Us Today!

Time is of the essence when it comes to tax-related issues. If you are uncertain as to what your next step should be, contact the reliable tax attorneys at Gabaie & Associates, LLC today.