ALBANY – Governor Andrew Cuomo Monday announced a new initiative to encourage individuals who owe significant back taxes to pay their bills. Under the new program, a New York State driver license can be suspended when a taxpayer’s past-due tax liability exceeds $10,000. The crackdown is the result of legislation introduced as part of the Executive Budget and signed into law earlier this year.
The new initiative is estimated to increase State collections by $26 million this fiscal year and as much as $6 million annually thereafter.
The Tax Department is sending the first round of 16,000 suspension notices to delinquent taxpayers, who have 60 days from the mailing date to arrange payment with the Department. If the taxpayer fails to do so, the Department of Motor Vehicles will send a second letter providing an additional 15 days to respond. If the delinquent taxpayer again fails to arrange payment, the license is suspended until the debt is paid or a payment plan is established.
A taxpayer who drives while the suspension is in effect is subject to arrest and penalties. Those with a suspended license can, however, apply for a restricted license, that allows them to drive to work, and return directly home.