text: if you owe tax's,can you still get any license renewed? my husband lost his job he had for 25 years.we always paid our tax's with his vacation check but now that we owe, we have had alot of problems credit,etc. we have set up a payment plan but will take a while to pay off.someone told us we can not renew any license including our driver's license. until we pay all our tax's off (i live in indiana) thanks for any info. it will depend on what taxes you owe and how far behind you are. the irs does not stop the renewal of drivers licenses to enforce tax debts. you state or city might. normally they will inform you of an action like that by letter.  i can not stress how important it is to communicate with your creditors and tax people about what is going on. if you are completely overwhelmed by your bills, consumer credit counseling service can help you to reduce your monthly payments to keep on track. http://www.cccsintl.org/