2023 New York Laws › TAX - Tax › Article 8 - Department of Taxation and Finance; Commissioner of Taxation and Finance › 171-V - Enforcement of Delinquent Tax Liabilities Through the Suspension of Drivers' Licenses.

§  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.