If you’re dealing with a tax problem, chances are that you owe the IRS and the Department of Revenue. And even though your Kentucky tax problem is a fraction of what you owe the IRS, it might surprise you to learn that the Kentucky Department of Revenue is your bigger problem.
The Dept. of Revenue Will Suspend Your License
In 2013, Kentucky enacted a law that allows the Department of Revenue to suspend or revoke your driver’s license if you owe Kentucky taxes or if you have unfiled tax returns that are past-due. It’s true. If you haven’t filed or receive a state tax bill that becomes delinquent, the Dept. of Revenue can (and will) suspend your Driver’s License with the push of a button.
The Kentucky Department of Revenue doesn’t like it when you owe the state money, and they like it even less if you don’t respond to those scary letters demanding that you call them to talk about your debt . . . or else. The “or else” now means you will lose your Driver’s License. So now you can’t drive, at least not legally. Your state tax problem has become a work problem, a health problem, a school problem, and if you get caught driving on a suspended license, a criminal problem.
But the law does not stop there. Revenue can also suspend your license to work. Doctors, lawyers, teachers, electricians, anyone who requires a license or certification to work in Kentucky can actually lose the ability to work because of a state tax problem.
So What Now?
What should you do if you’ve lost your Driver’s License because of a tax problem? Here are some tips:
Don’t ignore Revenue. They don’t like it when you “go dark” and suspending your license is an effective, sometimes cruel, attention-getter.
Be prepared to discuss your finances. By prepared, I mean that you know how much it costs for you to pay your bills every month. This is incredibly important and it leads me to the next rule, which is . . .
Don’t agree to make monthly payments that you can’t afford to pay. I know that sounds obvious, but it happens all the time. If you agree to a payment plan that you can’t afford it is doomed to fail and your situation with Revenue will only get worse.
Know your rights. The Kentucky Taxpayer Bill of Rights assures that you have a right to a payment plan.
Don’t talk to meanies. Most of the folks that work in Revenue’s Division of Collections are good people that are doing a hard job, and they actually do want to help you. But there are some rotten apples that seem to enjoy making you feel small. If you wind up on the phone with someone who does not sound like they want to help (you’ll be able to tell), then disengage. Politely tell them that you will have to call back and hang up the phone. It is better to do that than be bullied into something that you can’t afford.
Lastly, reach out for help that you can trust. I can help you get your license back. Click here to schedule your appointment with Commonwealth Tax Resolution today.