Reminder Letters from the Tax Office – Don’t Ignore the Request!

If you do not deal with the income earned in Germany, the tax office sends reminder letters requesting the submission of a tax return. What should you do when such a letter arrives? This article describes how to respond to such a request.

Reminder letter from the German tax office – why has it arrived?

You receive a reminder letter if a tax return has not been filed within the deadline set by the tax office or if there is a delay in the payment of due taxes.

It’s good to know that reminders are usually expected in October of the year following the tax year for which no declaration was submitted. Thus, more reminder letters will likely be sent by the office in fall 2023 to all delinquent taxpayers for the year 2022.

What to do when a reminder letter arrives?

Upon receiving a letter from the office, you should react immediately, as hesitation only causes harm.

If it’s a reminder to submit the tax return and the deadline has already passed, action should be taken as soon as possible. Late fees have likely already been incurred and increase daily.

To quickly respond to a reminder letter, you should have your documents ready. A checklist of the documents needed for the tax return, helps you to prepare the tax return promptly. With complete documents, you can submit the return immediately and avoid further late fees.

If the letter concerns a payment demand, it’s best to settle the debt immediately. If you disagree with the office’s decision, you can appeal later.

What penalties are threatened for late tax returns?

As already mentioned, failure to submit within the deadline may lead to the obligation to pay interest. The tax office calculates 0.25% of the due tax amount for each month of delay. This is at least €25 per month, but the maximum interest amount can be €25,000.

Even if interest is paid, a tax return must still be submitted. The office will not refrain, and further reminder letters and thus financial penalties will follow. With frequent delays, tax authorities will show no leniency, and a fine of up to €500 may be imposed.

When does the deadline for the tax return in Germany end?

To avoid the need to pay interest and fines in the future, one should adhere to the deadlines set by the German office. These have not changed for many years – the declaration must be submitted by July 31 at the latest.

Who is obliged to submit a tax return in Germany?

Compared to many other countries, not all people who earn income in Germany must deregister with the tax office. People often ignore the matter altogether when they hear that filing a tax return is not mandatory. However, it might turn out that you meet the criteria that make deregistration necessary. For this reason, the tax office is often forced to follow up by

sending reminder letters.

The obligation to file a tax return applies to persons who:

• have tax class III,
• receive untaxed income over €410 from benefits that replace salary (e.g., sickness benefit, homelessness benefits, parental allowance, or for short-term work),
• had several employers in the tax year and received more than one salary (belonging to tax class VI),
• use the combination of tax classes (III/V or IV/IV) with their spouse,
• are self-employed in Germany,
• have a child from an informal relationship and are fighting for tax benefits,
• have income from investments for which no taxes have been paid,
• have a carried forward loss from previous years,
• have received a request to reconcile in the form of a letter from the office.
• People whose income during the year exceeded the sum of €12,096 (for singles) and €24,192 for couples are also required to file a tax return.

Do you have to submit a declaration? Then we recommend using our app Taxando for tax settlement in Germany. It’s a fast and convenient tool with which all formalities can be quickly completed, and the tax office’s deadline can be met.