By: Eric Wexler
Maryland drivers have recently started to experience the effects of a new law that makes it difficult for individuals and businesses with delinquent taxes to renew their drivers’ licenses and vehicle registrations. On June 1, 2011, the Motor Vehicle Administration (MVA) began assisting the Comptroller of Maryland and the Department of Labor, Licensing and Regulation (DLLR) in the collection of outstanding taxes by putting a hold on the renewal of drivers’ licenses and vehicle registrations under Md. Code Regs. 11.11.15.01, et seq. The law gives the MVA the authority to refuse to renew a vehicle registration, transfer the vehicle registration, issue a replacement tag, issue a substitute set of tags, and issue a substitute set of registration stickers, as well as to refuse to renew the driver’s license. The hold is being applied to individuals and businesses with outstanding liability for income tax, sales and use tax, withholding tax, unemployment tax, or unpaid employment insurance contributions. Those affected must contact the Comptroller or DLLR to satisfy their outstanding tax liabilities, either in part or in full, before the hold is released. After a taxpayer has made arrangements to pay their outstanding tax or unemployment insurance liabilities, the Comptroller or DLLR must notify the MVA on the next business day.
Note that unlike IRS tax obligations, which generally become uncollectible after ten years, there is no statute of limitations on the collection of Maryland tax liabilities. McChesney & Dale, P.C. has assisted many individuals and businesses in resolving tax disputes and liabilities. If you require assistance with addressing your outstanding tax obligations, please contact us.