N.Y. Tax Law § 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.