Maryland Driver’s License Hold
The Motor Vehicle Administration or (MVA) works with the Comptroller of Maryland and the Department of Labor Licensing and Regulation (DLLR) in collecting state tax liabilities. The newest form of collection tactics are holds on a Maryland driver’s license or vehicle registration. If you have unsatisfied tax liabilities and it is time to renew your license or registration you may be in for a surprise. Your license may be flagged and you will be unable to renew your personal and business licenses and registration.
Will the MVA really hold my driver’s license or registration?
YES! The Comptroller will decide whether or not to hold your driver’s license or vehicle registration if you have a tax debt. Individuals and businesses that are in an approved payment plan with the Comptroller’s Office will be allowed to renew a driver’s license and vehicle registration. If you do not have an approved plan the Comptroller may decide to flag your license. If your license is held the MVA may release the hold with a lump sum payment or approved payment plan.
What if the MVA flags me?
If your license or registration is flagged by the MVA, you should immediately contact an attorney to help. Do not wait until it is time to renew your license it could be too late. We recommend that you do not contact the agency directly and try make an arrangement. We have found often times taxpayers try and negotiate on their own and they end up making their situation worse. You have a right to representation always exercise that right.
Can a business have a hold?
Yes absolutely they can. Any business with outstanding tax debt or unemployment insurance obligations are subject to a hold on vehicle registration renewals.
What can I do if my license is flagged or held?
If you are unable to renew your driver’s license or vehicle registration due to an outstanding tax debt, you should contact a reputable tax attorney to help negotiate terms for the release of the hold.
What if I can’t pay what I owe?
If you can’t pay the full amount, there may be terms a tax attorney could negotiate to get your license or registration hold released. An IRS attorney can help negotiate payment arrangements or negotiate a waiver without an initial payment. Know your rights and don’t be bullied. If your transportation is your livelihood, if you need your car to get around and work, do not waive your right to council. Take control and seek out an experienced attorney supervised resolution.
Can I dispute a hold?
If you feel you have received notice of driver’s license or vehicle registration renewal hold in error, contact a reputable tax attorney. A tax attorney knows all the ins and outs of holds and flagged accounts. Don’t attempt to navigate the dangerous waters on your own. Always at the very least consult with an attorney, arm yourself with the knowledge to make a reasonable dispute.
What business taxes may cause a registration hold?
Unpaid sales and use tax, admissions and amusement tax, corporate income tax, withholding tax, pass-through entity tax, alcohol tax, tobacco tax, and motor fuel and motor carrier taxes can cause your vehicle registration renewal to be held by the Comptroller’s Office. Also Unpaid unemployment insurance contributions
How long does it take to release my hold?
A license hold release can have immediate results if negotiated by a knowledgeable and experienced tax attorney. There are situations where it may take longer to negotiate terms of a release, each case is different.
Other types of licenses that can be held due to tax liabilities
- Child Care
- Food Service
- Any business that is required to be licensed by the state of Maryland can have a hold imposed upon them