(202) 630-4095
If you owe back taxes to the Maryland Comptroller, you could face aggressive collection efforts that disrupt your finances, damage your credit, and even restrict your ability to drive or operate your business. The state has broad authority to collect unpaid taxes through liens, levies, and license holds, often leaving taxpayers feeling overwhelmed and unsure where to turn.
At Tax Relief Counsel, with a Maryland-licensed tax attorney representing clients nationwide and internationally, we help individuals and businesses resolve state tax debts, defend against collection actions, and protect their rights. In this blog, we’ll break down how the Maryland Comptroller enforces tax collections, what your options are, and how experienced legal counsel can help.
How the Maryland Comptroller Enforces Tax Collections
The Maryland Comptroller is responsible for collecting state taxes, including income taxes, sales and use taxes, and withholding taxes. When taxpayers fall behind or fail to address outstanding balances, the Comptroller can initiate several powerful collection tools to recover the debt.
1. Tax Liens
A tax lien is a legal claim against your property for unpaid taxes. If the Maryland Comptroller files a lien:
- It attaches to your real estate and personal property.
- It becomes public record, searchable by other parties.
- It can prevent the sale or refinancing of your home.
- It signals to creditors that the state has a priority claim on your assets.
Tax liens are often the first step in the collection process and serve as a warning that further action is imminent.
2. Bank Levies and Wage Garnishments
If you ignore tax notices or fail to resolve your debt, the Comptroller can issue a levy to seize funds directly from your bank account or garnish your wages. Here’s how it works:
- Your employer may be ordered to withhold a portion of your paycheck.
- Banks can be instructed to freeze and send funds from your account to the state.
- Levies can continue until the full tax debt is paid or an alternative resolution is reached.
A levy can cause immediate financial hardship by limiting your access to wages or bank funds.
3. MVA Holds and License Suspensions
The Maryland Comptroller has the authority to place a hold on your driver’s license, vehicle registration, or professional licenses through the Motor Vehicle Administration (MVA) if you owe back taxes. An MVA hold can:
- Prevent you from renewing your driver’s license.
- Block vehicle registration renewals.
- Impact your ability to legally drive.
- Affect professional or business licenses in certain industries.
License holds are a powerful incentive for taxpayers to address their outstanding tax obligations quickly.
What Triggers These Collection Actions?
The Maryland Comptroller typically resorts to liens, levies, and license holds after:
- Failure to file required tax returns.
- Accumulation of unpaid tax balances.
- Ignoring multiple tax notices or demands for payment.
- Defaulting on an existing payment plan.
- Failing to respond to a Notice of Intent to Offset or Withhold.
Once your case reaches this stage, immediate action is necessary to prevent further damage.
Options for Resolving Maryland Tax Debt
If you’re facing aggressive collection efforts from the Maryland Comptroller, you do have options. Working with a qualified tax law firm like Tax Relief Counsel can help you explore solutions, including:
Installment Payment Agreements
Set up a structured plan to pay off your tax debt over time. The Comptroller may agree to a payment arrangement that stops collection actions while you make monthly payments.
Offer in Compromise (OIC)
In limited cases, you may be able to settle your Maryland tax debt for less than the full amount owed if you demonstrate financial hardship and inability to pay. The state’s OIC process is complex and requires skilled legal representation.
Penalty Abatement
The state may agree to reduce or eliminate certain penalties if you show reasonable cause, such as illness, financial hardship, or other valid explanations for non-compliance.
Contesting the Tax Assessment
If you believe the tax debt is incorrect, you can challenge the assessment through administrative appeals or legal channels. This is often the best option if the Comptroller’s calculations are wrong or you’ve been assessed in error.
Resolving License Holds
In many cases, license holds can be lifted by negotiating a payment plan or resolving the tax debt. We work directly with the Comptroller’s Office and MVA to help restore driving privileges.
Why You Shouldn’t Ignore Maryland Tax Debt
Unpaid state tax debt can lead to escalating consequences:
- Seizure of bank accounts and wages.
- Damage to your credit and public record.
- Loss of your driver’s license or professional licenses.
- Additional penalties and interest.
- Legal action, including lawsuits and judgments.
The longer you wait, the more complicated and expensive the situation becomes.
How Tax Relief Counsel Can Help
Dealing with the Maryland Comptroller can be intimidating. At Tax Relief Counsel, we:
- Negotiate directly with the Comptroller’s Office to resolve liens, levies, and license holds.
- Defend against aggressive collection efforts, protecting your wages, assets, and legal rights.
- Challenge improper tax assessments, using our legal expertise to correct errors.
- Develop personalized resolution strategies, including payment plans and offers in compromise.
- Represent you in administrative hearings and appeals.
With experience handling Maryland tax matters and complex collection cases, our attorneys provide trusted legal representation that tax relief companies simply can’t match.
Maryland Tax Problems Require Immediate Attention
The Maryland Comptroller’s collection tools are powerful, but with experienced legal guidance, they can be addressed. Ignoring tax debt only worsens the situation. If you’ve received a lien notice, levy, or MVA hold, don’t wait.Contact Tax Relief Counsel today at (202) 630-4095 for a confidential consultation. Our legal team will review your situation and help you take the right steps to resolve your Maryland tax issues effectively.
