16,000 New Yorkers Could Lose Their Licence For Falling Behind On Taxes

Now if you don’t pay your taxes in New York, it could cost you more than just a visit from the IRS.
The state has officially rolled out a new program that will yank delinquent taxpayers’ driver’s licenses if they are more than $US10,000 behind on payments, according to a
memorandum issued by the Dept. of Taxes and Finance.

Just three other states back licence suspension programs like this one, which is expected to reel in an additional $US26 million worth of tax revenue for New York in its first year.

Calling tax delinquents “scofflaws,” Gov. Cuomo said the new policy sends a clear message.

“These worst offenders are putting an unfair burden on the overwhelming majority of New Yorkers who are hardworking, law-abiding taxpayers,” he said. “By enacting these additional consequences, we’re providing additional incentives for the state to receive the money it is owed and we’re keeping scofflaws off the very roads they refuse to pay their fair share to maintain.”

The Tax Department is already mailing out 16,000 notices to delinquent taxpayers who are in danger of having their licence revoked. They’ll have 60 days to set up a payment plan or the D.M.V. will send another warning, this time giving them 15 days to respond. After that point, their licence will be suspended.

There are a couple of exceptions to this new rule. It won’t apply to commercially licensed drivers and taxpayers who are makings child or spousal support payments. Also, people who lose their licence will be able to apply for a restricted licence, which will allow them to drive only to work.

After this fiscal year, the Dept. of Taxes expects the program to rake in $US6 million in tax revenue each year.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.