German Tax Alert: Missing Your Tax Return Can Cost You Up to €25,000 in Fines!

The German tax authorities (Finanzamt) are sounding the alarm. Starting in October, they are sending out waves of reminder notices (Erinnerungen) to taxpayers who have failed to submit their mandatory tax declarations. If you are among those obliged to file but missed the July 31st deadline (or the extended deadline with a tax advisor), the Finanzamt is urging you to act immediately!

The initiative is designed to remind late filers that the declaration is compulsory and that failure to comply will result in severe financial penalties.

What are the stakes?

1. Late-Filing Surcharge (Verspätungszuschlag): The tax office may impose a monthly surcharge, starting at a minimum of €25 plus 0.25% of the tax due, for every month or partial month of delay following the deadline.
2. Penalties and Enforcement: If a taxpayer ignores the reminders and fails to submit the declaration, the tax office will proceed to a tax estimation (Schätzung), which is typically disadvantageous for the taxpayer. Furthermore, the Finanzamt can impose a compulsory fine (Zwangsgeld). The maximum penalty for persistent non-compliance can reach up to €25,000.

Do not wait for these drastic consequences! If you missed the deadline, contact the Finanzamt or a tax advisor to request an extension or submit your declaration as quickly as possible.

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