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Delinquent taxpayers could have licenses suspended
Albany, N.Y. On Monday, Governor Andrew Cuomo announced a new initiative to crackdown on delinquent taxpayers in New York state.
The new program would suspend the drivers licenses of people who owed more than $10,000 in back taxes to New York State.
The states tax department is sending out more than 16,000 notices to delinquent tax payers. These people will have 60 days to respond and set up a payment plan with the state to pay back the taxes owed.
If the person fails to do that, the Department of Motor Vehicles will contact the driver with a warning. If the driver fails to respond again, their license will be suspended until the debt is paid or a payment plan is established.
Rochester tax lawyer Gerald Dibble says this plan could work, but the payment plans must allow enough time for people pay back their taxes.
[The state] has to change their policy, Dibble explained. The policy now is to not take a payment plan more than six years. Many clients we are working with right now can't pay back their taxes in six years. They have hundreds of thousands of dollars in taxes owed and can't pay them.
Dibble fears that unless the amount of time given to pay back taxes changes, people will start finding ways around the system.
They need to have a plan in place where the person who owes the money pays what they can afford to pay like the IRS does or it will be a failed program where people will start working under the table and start driving without licenses.
The state says this program will bring in $26 million dollars in tax collections the first fiscal year and then $6 million annually thereafter.
Those with suspended licenses can apply for special restricted licenses that would allow for them to drive to and from home and work.