Delinquent taxpayers in the state of Maryland have recently started to experience the effects of a new law that makes it prevents individuals with delinquent Maryland tax 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 placing a hold on the renewal of drivers’ licenses and vehicle registrations under Md. Code Regs. 11.11.15.01, et seq. This law grants the MVA 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 satisfy their outstanding tax liabilities, either in part or in full, before the hold is released. This may be done in a variety of ways.
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. We have assisted many individuals and businesses in resolving tax disputes. If you require assistance with addressing your outstanding tax obligations, please contact us.