Objection to a Tax Assessment

The objection (Einspruch) is the out-of-court remedy against administrative acts of the tax office and thus the central means of having a tax assessment reviewed. Its legal basis is found in §§ 347 et seq. of the German Fiscal Code (Abgabenordnung, AO).

The objection must reach the competent tax office within one month of notification of the assessment. The so-called three-day rule for regular mail applies. A statement of grounds is not mandatory, but should be submitted promptly. Importantly, the objection does not suspend the obligation to pay – anyone wishing to suspend enforcement must additionally file a separate application for suspension of enforcement under § 361 AO.

During the objection procedure, the tax office re-examines the assessment in its entirety. This carries the risk of so-called Verböserung: the office may decide to the taxpayer's disadvantage if, after being warned of a possible worsening, the taxpayer maintains the objection. A careful assessment of the prospects of success and a well-drafted submission are therefore advisable in many cases.