Consumer Comeback Blog

California Revokes Driver’s, Professional Licenses From Tax Delinquents

We all know the consequences of accruing too much debt – constant collector calls, plummeting credit scores, garnishing wages. But those are nothing compared to unpaid tax debt. The IRS doesn’t mess around, and will happily put you in prison for not paying your federal taxes, but state taxes are a different story.

Failure to pay taxes will not only land you in bad legal standing, but it could also affect your ability to get around and even your ability to work. If you owe more than $100,000 in California, you could now lose your driver’s license and many professional licenses, reported the Modesto Bee.

Professional licenses that fall under the new law include medical, legal, real estate, hair styling, contractors and many more. Debtors on the top 500 list are also prohibited from working for or with any state agencies, including contract work.

Cracking down on tax debtors could significantly help the state coffers which are already stretched thin. The Modesto Bee reported that California has a $10 billion shortfall between taxes that are owed and what’s collected.

California began releasing the names of delinquent tax payers in 2007, but recently doubled the number of names from 250 to 500. Since state agencies began releasing names, the state has recovered more than $171 million in taxes.