An administrative law judge has upheld a New York Department of Taxation decision to suspend the driver’s licenses of an elderly Orange County couple for not paying more than $1 million in personal income taxes.
Donald and Cecilia Hanson, of Tuxedo Park, protested the decision last year, claiming that they owed the state less money and that the loss of Mr. Hanson’s license would impair his ability to earn money to pay the taxes.
State tax law allows for suspension of a driver’s license to enforce past-due tax liabilities, according to Administrative Law Judge Osborne K. Jack, in an Aug. 14 ruling in the Hanson case.
The Department of Taxation notified the Hansons in July 2024 that they had 60 days to pay their taxes or face possible license suspensions. At that point, the state calculated, the Hansons owed $1,037,691 in personal income taxes, interest and penalty.
If they did not formally protest, the Hansons were told, the state would recommend that the Department of Motor Vehicles suspend their licenses.
The Hansons quickly responded, petitioning the Division of Tax Appeals to reject the Division of Taxation’ position. They claimed they owed $871,034, or $450,000 less than the state’s calculation. Donald Hanson also stated in an affidavit that suspension of his driver’s license would severely inhibit his ability to get around and earn the money to pay the liability.
Judge Jack did not decide how much the Hansons owe, because, he said, that question has no bearing on the issue of suspending driver’s licenses.
He noted that Donald Hanson could get a restricted use license for engaging in a business, trade, occupation or profession. “Thus, he failed to carry the burden of showing that the proposed driver’s license suspension would cause him undue economic hardship.”
The tax ruling does not identify Mr. Hanson’s occupation. But according to Federal Election Commission records, a Donald Hanson of Tuxedo Park was a real estate investor in 2008, and was retired by 2020.
The judge sustained the Department of Taxation’s proposed driver’s licenses suspensions.
In the 14 months since the original assessment, the Hansons’ personal income tax liability has increased by more than $130,000, according to a tax warrant. Now the state says they owe $1,167,407.
