Every day, millions of Maryland residents rely on their state-issued drivers’ and business licenses to earn a paycheck, take care of their families, and have fun during their free time. Our cars, trucks, motorcycles, and professions enrich our lives and allow us to prosper as productive members of our communities.
Still, operating a business or vehicle in Maryland is a privilege that you should never take lightly, especially since our state government can revoke that privilege at any time. In recent years, the IRS and the State of Maryland have undertaken more aggressive collection efforts, and they know license holds are an extremely effective tactic. If you owe outstanding taxes or have failed to file your personal or business returns in recent years, this initiative could directly affect you.
Keep reading to learn how S.H. Block Tax Services can help lift your tax-related license hold by minimizing or even eliminating your tax liability.
Which Tax-Related Actions Could Lead to a License Hold in Maryland?
In Maryland, the Department of Labor, Licensing and Regulation (DLLR) works with the Comptroller of Maryland and the Motor Vehicle Administration (MVA) to place holds on the drivers’ and business licenses of residents who have outstanding tax liabilities.
Ultimately, the decision to hold a license rests with the state comptroller’s office, and they can choose to withhold license renewals for any Maryland resident who has tax debts and isn’t actively paying them off through an approved payment plan. Once the taxpayer enrolls in an approved plan, however, the comptroller’s office will release the hold.
So, if you have an outstanding tax debt and want to hold onto your drivers’ and business licenses, you should act quickly to resolve the liability.
How to Resolve Your Tax Liabilities and Reinstate Your License
If you have received a notice from the MVA stating that your tax liability could prevent your license renewal, you should contact S.H. Block Tax Services immediately. Once you retain our representation, we will handle all communications with the comptroller’s office and work directly with officials from the IRS and the State of Maryland to resolve your tax problems quickly and effectively.
Maryland residents who fail to respond to the comptroller’s notice by the date provided will likely receive a hold on their license. Even if you can’t pay your liability in full, you should reach out to S.H. Block to develop an action plan that will delay or prevent the license hold. It’s also possible that you received your notice in error, which our attorneys can work to correct.
Once you contact us, we will verify the alleged tax liability. In some cases, state and federal agencies make significant accounting and financial errors. And in other instances, the numbers might be right, but the IRS or state government may have failed to adequately inform you of your rights.
Next, we will determine your eligibility for one of several state or federal programs, including a possible installment agreement or Offer in Comprise. Finally, we will work with the proper institutions to lower your resolution costs while we keep you informed of our progress at every step.
If you own a business, you have to worry about business taxes as well as your personal income tax liability. You could face a license or vehicle registration hold if you failed to pay any of the following taxes:
- Sales and use
- Admissions and amusement
- Corporate income
- Pass-through entity
- Alcohol and tobacco
- Motor fuel
- Motor carrier
In addition, unpaid employment insurance contributions could cause the DLLR to withhold the registration renewal on your company vehicle.
Thankfully, once you satisfy your tax debt, the State of Maryland will promptly release the hold on your drivers’ or business license. In most cases, once the state receives full payment or you begin an approved payment plan, the hold will disappear within two to three business days. So, the sooner you take action, the sooner you can get back to business or get behind the wheel again.
S.H. Block Tax Services Can Assist You With All Your Tax Liability Needs
In addition to license holds, the IRS and state agencies can also garnish your wages and place liens and levies on your property and financial accounts to satisfy your tax debt. To avoid these aggressive collection efforts, you should contact S.H. Block Tax Services today and begin working to resolve your tax liabilities.
Our attorneys and support staff have decades of experience helping thousands of Maryland taxpayers with tax issues much like yours. We have earned an A+ rating with the Better Business Bureau, and we offer free, no-obligation consultations by phone or in our downtown Baltimore office.
Don’t let your tax problems prevent you from leading the life you want. Please complete this brief online contact form or call (410) 793-1231 to speak with one of our skilled and experienced attorneys today.
The content provided here is for informational purposes only and should not be construed as legal advice on any subject. Please read our full disclaimer here.