The Massachusetts Department of Revenue (MDOR) announces they are increasing fees and penalties and will begin revoking/suspending driver’s licenses for failing to pay taxes.
Effective July 1 2008, the penalty for not paying state taxes (income, sales, meals, withholding, etc.) has doubled from ½% to 1% per month. The penalty accrues monthly on unpaid balances to a maximum of 25%. That was bad enough, but...
The one-time demand fee charge has also increased six-fold from $5 to "not more than $30". But wait, there's more...
Also effective July 1st the MDOR will be notifying the Registry of Motor Vehicles to revoke or suspend a driver’s license, learner’s permit (for those 16 year old tax scofflaws I guess) and/or motor vehicle registration for nonpayment of taxes.
Finally, for those taxpayers who did not have health insurance on 12/31/07 and appealed the penalty to the Commonwealth Health Connector will be receiving tax bills if they failed to provide the requested documentation or had their appeal dismissed. As a reminder, these penalties are tax debts. Unless they are paid in full or an installment agreement is made, the taxpayers will enjoy a sampling of the MDOR’s delinquent tax enforcement menu. What’s on the menu?
Hors d'oeuvre for Happy Hour: Paycheck garnishment
Early Bird Special: Bank account levy
Drive-thru Special: Loss of driver’s license/registration
Seriously though, as my client you know it does not have to come to this. If you are in over your head with a tax problem just call or email my office.
