Some State Tax Agencies under state law have the legal right to suspend state drivers licenses and to suspend state-issued professional licenses due to delinquent back taxes. While some states will not suspend a driving license if a taxpayer can demonstrate “Hardship”, a hardship exception results in driving restrictions being placed on your license allowing the taxpayer to drive only to and from work and to drive for certain state defined necessary errands, often limiting the validity of said restricted licenses to only one year such that the taxpayer would have to reapply for a hardship restricted driver license prior to the one year expiration of the restricted hardship license. State Tax Agencies are serious about delinquent taxes and are also going after professional licenses as well. For example, California Assembly Bill 1424, the Delinquent Taxpayer Accountability Act, takes aim at the state’s worst tax debtors. The bill delivers a clear message: pay your back taxes or we’ll suspend your driver’s license and/or professional licenses!
A driver’s license and a professional license are issued by states and regulated by states, and therefore, while some state tax agencies under state law can revoke a driver’s license or a business/professional license, the IRS cannot revoke your state driver’s license or state professional license. The Federal law varies if you have been convicted of tax fraud or tax evasion.
Don’t let back taxes get in the way and restrict your legal right to drive a vehicle or restrict your ability to work under a professional licensure. Life is short! Call Coast One Tax Group today for a free consultation and put an end to your back taxes problem! Let us take the time to do what we do best so that you can go on living an unrestricted life.