Back taxes owed to the IRS or any State Department might result in a slew of unfavorable consequences. Those who fail to pay and owe substantial sums may have their personal property confiscated, including their homes, yachts, automobiles, and even bank accounts, to settle those debts.
Another way the IRS may punish you for failing to pay your tax liability is license revocation or suspension. For example, if you owe more than $100,000 in taxes, interest, or penalties and have not established a settlement plan, your driver’s license may be suspended. Before the state notifies the DMV of your status to suspend your license, you will have 60 days to engage in a collection plan with the state.
Your professional and occupational licenses may be suspended, as well. Realtors, dentists, lawyers, therapists, barbers, engineers, and other professions may be unable to renew their professional licenses, which means they might be unable to do business or earn a living in their chosen industries.
If you meet the following criteria, you may be entitled to a legal exemption from revocation or suspension:
- possess a commercial driver’s license (CDL)
- have salaries that are presently garnishing;
- pay court-ordered child support or spousal and child support;
- get government help; and
- receive Supplemental Security Income (SSI), a federal income supplement program meant to assist the elderly, blind, and disabled people who have little or no income.
You will get a Notice of Proposed Driver’s License Suspension before your license is suspended or revoked, allowing you 60 days to address your tax obligation.
Fail to respond to this notice, the following will occur:
- The IRS or state department will contact the Department of Motor Vehicles (DMV) to recommend the suspension of your driver’s license, and
- The DMV will send you an Order of Suspension or Revocation 15-days before the date your license will be suspended.
How To Resolve This Tax Problem
If you got a Notice of Proposed Driver’s License Suspension, or if your license has already been suspended, you must do the following:
- Pay your tax debt in full
- Create an installment payment agreement
- Demonstrate your eligibility for a legal exemption from suspension.
Special Key Points
Contact the IRS or your trustworthy tax experts if you:
- get a notification that was not meant for you
- have previously addressed your debt
- have previously paid your debt
- have filed a bankruptcy case for your past-due obligation
- are entitled to innocent spouse relief
Were Your Licenses Revoked? Tax Expert for America Can Help!
Before pursuing prosecutions or imposing harsh fines, the IRS would prefer to engage with the delinquent taxpayer to reach a settlement plan. It is why the IRS sends out notifications before revoking licenses regularly.
If you think that you might not be able to pay your taxes on time, it is essential to seek help from a tax attorney familiar with tax law. At Tax Expert For America, your trustworthy tax resolution company, we can provide the best IRS tax help! Consider speaking with one of our trustworthy tax lawyers and consultants today if you have any additional questions or need help with your revoked or suspended license!