Have a Driver’s License Hold in Maryland? S.H. Block Tax Services Is Here to Help
If you owe taxes to the State of Maryland, you may have a difficult time renewing your driver’s license or vehicle registration. Maryland has the authority to withhold licenses for people who owe taxes. Most notably, the state can suspend the renewal of your driver’s license, which can be a major problem if you rely on your car or truck for transportation. The state can also withhold most other state licenses you possess, whether they’re personal or professional.
If you’ve received notice from the Comptroller of Maryland that the state is placing a hold on the renewal of your driving license or other licenses, contact S.H. Block Tax Services for help by calling (410) 872-8376. To learn more about license holds in Maryland, keep reading.
How Does the Comptroller Suspend a License?
The comptroller requires organizations that issue state licenses to send in a list of all licenses up for renewal. If the comptroller identifies any of the licenses as belonging to an individual with unpaid tax liability, they can instruct the organization to place a hold on the renewal of that license.
For instance, the Motor Vehicle Administration (MVA) works with the Comptroller of Maryland and the Department of Labor Licensing and Regulation (DLLR) to enforce tax liabilities. If you have unpaid tax liabilities, the comptroller may have the MVA flag your driver’s license. You’ll receive notice of the license hold before the renewal deadline, which will give you time to prevent the hold if you act fast. But resolving your license hold may not be easy.
State-Issued Licenses the Comptroller May Withhold
The Comptroller of Maryland can place a hold on any personal or professional licenses issued by the state. Licenses that the comptroller may be able to suspend include:
- Driver’s license and vehicle registration
- Medical license (nursing, doctor, etc.)
- Business license
- Food service license
- Realtor license
- Law license
What Should I Do if I Receive Notice of a License Hold?
You need to act fast if you receive notice that the comptroller will place a hold on your license. To avoid a hold or get a hold released, you’ll need to contact the comptroller and arrange to pay back your tax debt.
If you contact the comptroller directly, they will require 10% of the amount you owe upfront and the remaining balance within 36 months. Usually, such an agreement is hard to fulfill. And if you agree to these terms and then fail to comply, the comptroller will increase your down payment to at least 25%.
Rather than contacting the comptroller or the licensing organization directly, the most efficient and effective way to release a license hold is to work with a tax attorney who has experience negotiating license hold releases and payment plans.
The Benefits of Working With a Tax Attorney on Your License Hold Release
An experienced tax attorney can help you negotiate more favorable payment arrangements for your tax liability, and they should be able to help get your license released so you can get back to your life. A tax attorney may be able to help you:
- Get a waiver of your initial payment
- Dispute your tax debts
- Design an installment plan
- Negotiate an offer in compromise
Frequently Asked Questions About License Holds
Do I Have to Pay My Tax Debt in Full to Get a Hold Released?
You do not have to pay back your debt in full before you can get your license released. To get a hold released, you must negotiate with the Comptroller of Maryland and take initial steps to resolve your debt, such as setting up a payment plan. However, unless you qualify for an offer in compromise or another collection alternative, you will still need to pay back the full amount of your tax liability.
What Business Taxes Can Cause a Vehicle Registration Hold?
Various types of unpaid business taxes can cause the comptroller to hold your vehicle registration renewal, including:
- Sales and use tax
- Admissions and amusement tax
- Corporate income tax
- Withholding tax
- Pass-through entity tax
- Alcohol and tobacco tax
- Motor fuel and motor carrier tax
- Unpaid unemployment insurance contributions
Can I Dispute a License Hold?
If you receive notice of a license hold and you believe the comptroller has made the renewal hold in error, you can dispute the hold. However, you’ll want to work with a tax attorney to collect the information and evidence necessary to dispute the claim.
How Long Will It Take to Get My License Released?
A license hold release can have swift results if negotiated by a knowledgeable and experienced tax attorney. You may be able to return to driving or working with minimal impact on your life if you act quickly after receiving the notice. However, each case is unique, and there are situations where it may take longer to negotiate the terms of a release. Get in touch with the team at S.H. Block Tax Services to get specific information about your case.
Contact S.H. Block Tax Services for Help With License Holds and Tax Liabilities in Maryland
When a license hold prevents you from driving or doing business, it can have a devastating effect on your life and livelihood. If you’ve received notice that the Comptroller of Maryland is holding your driving or business licenses, contact the experienced tax attorneys at S.H. Block Tax Services for help.
At S.H. Block Tax Services, we present the comptroller with facts and circumstances that prove what you can afford to pay back. This often results in a lower down payment and a payment period longer than the default 36 months.
Don’t wait to get help if you’re dealing with a license hold or any other tax-related issues. Schedule your free consultation with an expert from our team by calling (410) 872-8376 or filling out the contact form on this page.