Received a Reminder to File Your Tax Return? Act Quickly!

Received a Reminder to File Your Tax Return? Act Quickly!

Most tax offices send taxpayers a written reminder to file their income tax return on time. Similar reminder letters exist for other types of tax as well. What do these letters actually mean? Does every tax authority send them? What consequences are you risking if you do not file a tax return? We address these and other questions in the article below!

Tax authorities send these documents automatically when the following conditions are met:

- There is a compulsory assessment obligation (Pflichtveranlagung). This applies, for example, to all self-employed persons who have registered their activity with the tax office.

- The taxpayer has not yet submitted their tax return.

You will generally receive this letter shortly before the filing deadline expires. Treat it as a friendly reminder: if the deadline has not yet passed, there are no consequences to fear. Deal with the matter immediately. Submit your tax return, or send any missing data and documents to your tax adviser!

A reminder letter is different from a formal demand to file (Aufforderungsschreiben). The tax office sends a formal demand when no compulsory assessment obligation previously existed and this has now changed. This affects, for example, employees who received the short-time working allowance (Kurzarbeitergeld) in the previous year and are therefore required to file a tax return. Self-employed persons may encounter this in their founding year if they were in compulsorily insured employment the previous year.

The reminder letters sent by tax authorities are a courtesy service to which taxpayers have no legal entitlement. By sending the tax return reminder, the competent tax office aims to

prevent taxpayers from missing the filing deadline and potentially having to pay a late-filing surcharge.

The obligation to file and the applicable deadline exist independently of any reminder letter. Even if you do not receive a letter, you are responsible for ensuring your tax returns are filed on time!

In practice, most tax administrations do send these letters. There are, however, regional differences. Not every tax office sends a timely reminder to submit the income tax return and other tax returns. Do not rely on receiving one!

If you receive a reminder to file your tax return, you should take the necessary steps immediately. If you are working with a tax adviser, there are probably still data or documents missing. Send your tax adviser all the required information and documents so that they can complete your return!

Did you intend to complete your tax return yourself but lack the time or the know-how? Then contact a competent tax adviser at the latest upon receiving the reminder letter. They will explain how you can avoid potential penalties!

In exceptional cases, the tax office will agree to an extension of the deadline. You must submit a corresponding written application stating your reasons. There is no legal entitlement to an extension; you are dependent on the goodwill of the case officer.

Valid reasons for a deadline extension include, among others:

- missing documents

- a prolonged serious illness

- an extended period abroad

State the period of extension you require. The general rule here is: the shorter, the better!

Take the filing deadlines and a letter from the tax office as a reminder seriously! Missing the deadline on time can have serious consequences.

These include the late-filing surcharge, which amounts to 0.25% of the tax liability per month and a minimum of 25 euros. Fourteen months after the end of the tax year, your tax office is required to impose this surcharge; prior to that, it may waive it as a gesture of goodwill. Do not count on such leniency, however!

If you fail to respond to the tax office, the authority will also impose coercive measures. As a rule, it opts for a penalty payment (Zwangsgeld) designed to exert pressure. If you continue not to respond, a bank account or wage attachment may follow. In addition, your tax administration may issue a tax assessment based on an estimated tax liability. Bear in mind the risk of interest charges for late payment as well!

Tax offices have several sanctioning options at their disposal — all of these tools carry significant consequences. This applies, for example, to the penalty payment and the associated threat of enforcement action. Most tax authorities resort to this measure swiftly; a penalty payment may reach you within just a few days of the missed filing deadline!

Completing tax returns is a challenge for self-employed persons. Your best option is to instruct an established tax firm such as Guhr Steuerberatung: this will take an enormous burden off your shoulders! A further advantage is that you benefit from an extended filing deadline.

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