The state of Maryland has the authority to impose certain penalties when you fail to pay your state income taxes. Many of these penalties involve the imposition of monetary fines and interest, which can bump up your tax bill. While this will be more expensive, these financial consequences may not be enough to persuade you to satisfy your tax liability. Preventing you from renewing your driver's license and/or vehicle registration, on the other hand, has proven to be a very successful motivator.
Can the State Prevent Me From Renewing My Driver's License?
Yes. The Comptroller's Office works closely with many state agencies, including Motor Vehicle Administration (MVA), to collect state taxes. If the state believes that you haven't paid your taxes, it can flag your driver's license and/or vehicle registration.
When you show up to renew your license or vehicle, you'll be in for quite the surprise. The MVA will explain that you are ineligible for renewal because you have an unpaid tax debt. You'll have to settle your dispute with the Comptroller's Office before the hold will be removed from your license and/or registration.
Does the License Hold Just Affect Individual Taxpayers?
No. The license and vehicle registration holds apply to both individual and business taxpayers. Businesses most often find that they have difficulty renewing their vehicle registration(s) when they have not paid state income tax or satisfied unemployment insurance responsibilities. The only way to remove the hold is to satisfy the unpaid tax obligation or negotiate an arrangement with the state.
How Do I Get the Hold Removed From My Driver's License?
There are three primary ways to get the holds removed from your Maryland state driver's license and vehicle registration: paying, negotiating, or contesting your debt.
Pay your outstanding tax debt. The simplest and quickest solution is to simply pay your outstanding tax liability. However, it is best to do this only if you agree with the state's assessment.
Negotiate a payment plan with the state. If you cannot afford to pay all of your unpaid taxes, it is important to speak with an experienced Maryland tax attorney immediately. Your attorney reviews your situation and negotiates a reasonable payment plan with the state. The MVA will not restrict your ability to renew your license and/or registration if you are enrolled in a legitimate payment plan.
Formally contest your delinquent tax status. If you do not believe that you are delinquent on your taxes or are confident that the state has made a mistake, you have the right to formally contest its assessment. You will need the guidance of an attorney who is familiar with this process. Call Maryland tax attorney Juda Gabaie for help today.
Get Help Getting Your License Back
Has the MVA refused to renew your driver's license or vehicle registration because you haven't paid your taxes? Do you need help negotiating a payment plan or contesting the state's decision? Contact the Maryland tax attorneys at Gabaie & Associates, LLC to schedule a free consultation. We will review your situation, outline your legal options, and help you get back on the road.