date | theme

08. November 2017 | Gift Tax & Gift Tax Declaration

12. October 2018 | Tax returns for companies

08. September 2021 | Audit: this is how you negotiate successfully with the tax office!

21. September 2021 | Separate determination according to § 180 AO: Requirements and legal consequences

04. October 2021 | Deadlines for tax returns: Is a change subsequently possible? (this contribution)

Time limits for tax returns are differentiated by taxpayer with advice from tax consultants and taxpayers without this assistance. Because tax consultants have much longer time for the preparation of the tax declarations, so that all mandates can be processed during this time. However, if other information arises in the case of a tax declaration, a change of the issued tax assessment according to § 173 AO can be requested. It should also be noted here that according to § 170 AO the fixing period and thus also the statute of limitations is regulated. Below, we look at the deadlines for tax returns in general and specifically for 2020, as well as the legal consequences of defaults.

If you as a taxpayer are obliged to file a tax return, then different deadlines apply regarding the submission depending on the status of the taxpayer. A distinction is made between taxpayers who submit their tax return according to § 149 Abs. 2 AO and taxpayers who submit their tax return according to § 149 Abs. 3 AO, but this is taken over by a tax consultant.

Accordingly, different filing periods apply for taxpayers. Although tax consultants are mostly absolute experts in their field, it would be disproportionate to require them to prepare all tax returns for their entire clients within seven or even five months. Thus, different standards apply here than for independent explainers.

Now in the specific case of the pending tax return for the 2020 financial year, a deadline for self-declaring taxpayers until 31 July 2021 applies. Until 2018, 31. May as the last deadline for filing the tax return, but this was postponed from the ... to the back starting from 2019. However, this new valid deadline for the 2019 and 2020 tax returns due to the Corona pandemic has been set at 30. October of the following year.

This is different due to Corona for the preparation of tax returns of tax consultants. For this, the legislature has the deadline for 31. May 2022.

It is essential to avoid missing the deadlines for filing tax returns. Because delay surcharges according to § 152 AO are logically made in the case of tax decisions submitted too late. The tax authorities have the power to distribute negligence surcharges. Since 2019, there has been a tougher penalty with at least 25 € or 0.25% of the tax payment per month, which the tax return is received too late. But beware: The delay surcharge can be increased up to a level of 25,000 € by the administrative authority. It becomes particularly critical for repeat offenders, as they face further interest and penalty payments.

These previously mentioned filing periods are only relevant for persons, if they must submit a tax return. This includes self-employed persons, persons who earn income from renting and leasing as well as pensioners who exceed the basic allowance for income tax of the respective year with their income. Now this basic allowance increases from year to year, for 2020 this was € 9,408. It also rises to €9,744 for 2021.

Furthermore, there are some additional criteria that entail an obligation to submit a tax return. For example, this includes the condition that an employee earns income of more than € 410 from self-employment. Because up to this amount their tax exemption applies. In addition, simultaneous employment obliges two employers to submit a tax return for this year. If you are unsure about your tax liability and your duty to submit a tax return, you are welcome to contact us.

If taxpayers are not able to submit their tax return in time, an extension of the deadline can provide a remedy. Because this can achieve a suspensive effect for the submission of the tax declaration of up to four months. However, a request for an extension of the deadline must be supported by good arguments, such as a move, a longer illness, missing documents from other institutions or stays abroad are necessary for this. When staying abroad, a dual residence should also be avoided. Since these reasons are more often relevant for private individuals, this is usually approved if the signs of an extension are given.

If, in turn, tax consultants want to obtain a deadline extension for their clients, this is sometimes more critical. Nevertheless, here too an informal letter to the tax office should suffice and need no special application. According to § 109 para 1 S. 2 AO, a subsequent extension of the deadline would also be a possible variant for circumventing delay surcharges, even if it is better not so far.

Now, in certain cases, it may come to the repeal or amendment of tax notices. It should be noted whether new facts or evidence are subsequently known and lead to a higher or lower tax levy. The former is logically always associated with a change in the tax assessment. Whereas the latter only leads to a change according to § 173 para. 1 no. 2 AO leads if the taxable person can not do anything for the delay in becoming aware of the new information. First of all, it is therefore necessary for cases of excessive taxation by the tax administration to check the decisions issued directly, so that objections can be raised within the 1-month period.

However, an important detail must be considered here, because if an objection is filed, the tax office can basically check the decision from top to bottom again and possibly come to a disadvantageous decision for you as a client. On the other hand, this is not possible in the case of a request to amend the adjustment notice. You can provide this if obvious calculation errors or clerical errors have been made, but this would only check the affected bodies by the tax office.

In cases of change of tax assessments, it is also important to note that there may also be a change block if the tax assessment has been issued after an external audit has been carried out. This prohibition can be in accordance with § 173 Abs. 2 AO can only be circumvented if there is a case of tax evasion or the taxpayer wanted to obtain a tax reduction lightly.

According to § 218 AO, the settlement decision is a means of the tax office, whereby the latter decides on tax claims within a tax liability relationship. Different results can be declared within the settlement notice, because both already settled and outstanding claims can be set out therein. In order for a billing notice to be issued in the first place, there must be disagreements between the tax office and the taxpayer, because then it is up to the applicant to present arguments for his point of view and to demand them. This may be necessary in the case of refund claims, default surcharges or even in the case of an expiration of the tax claim.

Finally, it is certainly the smartest to comply with the general deadlines for filing tax returns in order to avoid unpleasant conversations and thus possibly arising confrontations with the tax authorities. In addition, it is easy to save costs and prevent unnecessary surcharges. However, the most important reason for a timely submission is the predictability and legal certainty of an early received tax assessment. For this reason, sometimes large corporations submit their tax returns earlier, so that the financial resources can be secured and reinvested directly on a legally secure basis. If you would like to have your tax return, your accounting or your balance sheets prepared with us, you are happy to contact us.