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This entry was published on 2019-07-19
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SECTION 171-V
Enforcement of delinquent tax liabilities through the suspension of drivers' licenses
Tax (TAX) CHAPTER 60, ARTICLE 8
§ 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 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 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 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 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 section one hundred seventy-one of this article
or from joint and several liability pursuant to 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.