Time and again, taxpayers only approach us after receiving a tax assessment notice.
There are serious consequences, which are explained using the following typical example.
I. Initial situation
Whether through no fault of your own or consciously – if a due tax return is not submitted despite a reminder, sooner or later a tax assessment notice will arrive.
Since the tax office cannot know the actual tax situation, there are exactly two options: the assessment decision sets a tax that is too high or too low.
II. Scenarios
1. Tax assessment too low
Many taxpayers have happily welcomed a tax estimate that was too low and initially refrained from submitting the relevant tax return (late).
However, this procedure entails considerable risks, because even after the issuance of an assessment notification, the taxpayer remains obliged to submit a proper tax return and, through his behavior, also realizes criminal tax offenses according to. §§ 369 ff. AO.
The joy generally only lasts for a short time.
2. Too high a tax assessment
If the tax estimate is inappropriately high, this already has an accelerating effect on most taxpayers.
Time is of the essence in these cases, because the assessment decision threatens to become legally binding after the objection period of one month (Section 355 I AO) has expired.
Even if a proper tax return with a significantly lower tax liability is submitted after the objection period has expired, this does not change anything in the assessment notice.
An objection must therefore be lodged against the assessment notice within the deadline and the overdue tax return submitted.
Since a taxpayer has not fulfilled his duty to declare in time in this case too, there is a renewed threat of criminal tax sanctions as in the 1st scenario.
III. Recommended action
If it has come to the point that a tax assessment notice has been issued and the taxpayer has been informed, an experienced tax advisor (tax advisor, lawyer, auditor) should be contacted immediately.
If a tax advisor has already been commissioned, this must be consulted urgently.
In general, the following applies in such cases: the more time that passes, the greater the negative financial and possibly criminal consequences.
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