What to do if the German tax office asks for extra payment although you paid correctly

What to do if the German tax office (Finanzamt) demands extra tax payment? Learn the reasons, appeal options, and golden rules to protect your rights in Germany.

In Germany, it is not uncommon to receive a letter from the Finanzamt claiming that additional taxes are due even when your return was filed correctly and payments were made on time. This can be caused by processing delays, data mismatches between banks and the tax office, overlooked allowances, or simply clerical mistakes. For taxpayers, such notices are stressful because they often include interest warnings and formal language that suggests urgency. Before paying anything, you should verify the calculations in the Steuerbescheid (tax assessment) against your return and bank statements — in many cases, a short, well-documented objection resolves the issue. German law gives you clear tools: a formal Einspruch (objection) within one month and, where necessary, a request for Aussetzung der Vollziehung (suspension of collection). A step-by-step approach is outlined by G.business.

Why the Finanzamt might demand more

Even if your return was correct, the assessment can deviate because an allowance was not applied, a payment was recorded late, or an automated plausibility check flagged your case. For freelancers, discrepancies between estimated prepayments and actual profit figures often trigger additional demands. Employers’ wage tax data, insurance information, or investment income may arrive late, causing temporary gaps in the file. Technical updates can also generate provisional assessments that are later corrected. Understanding these mechanisms helps you answer the notice precisely instead of disputing it in general terms.
Typical triggers:

payment booked late or to a wrong reference,
unrecognized allowances (Kinderfreibetrag, Sonderausgaben, etc.),
automated system or data-entry errors,
discrepancies between declared and reported income,
mismatched prepayments vs. final assessment.

How to react to a demand notice — first steps

A demand letter is not a verdict; it is a call to clarify. First, read the Steuerbescheid carefully: identify the tax type, period, and the calculation that led to the extra amount. Then compare the figures with your ELSTER submission and bank statements, checking payment dates and transaction IDs. Note the one-month deadline to object; missing it usually makes the assessment final. If you already see the mistake (e.g., a missed allowance), draft a concise letter explaining the point and attach proof. If you need more time, you can submit a short Einspruch now and send detailed reasons later.
Immediate actions:

review the notice and highlight the disputed line items,
reconcile with your filed return and payment confirmations,
diarize the one-month Einspruch deadline,
submit a brief objection to stop the clock,
avoid paying until the matter is clarified.

Collecting persuasive evidence

The strength of your objection depends on documentation. For payments, provide bank statements and transfer confirmations showing the Verwendungszweck and value date. For allowances, attach contracts, invoices, or official certificates that justify deductions. If an employer or bank reported erroneous data, request a correction and include their written confirmation. Organize your appendix with numbered exhibits and a short mismatch list (“Finanzamt figure vs. correct figure — evidence no. X”). Businesses should keep tax-relevant records for up to ten years; private taxpayers benefit from similar discipline.
What to attach:

copy of the filed return and ELSTER submission receipt,
bank statements and transfer receipts with transaction IDs,
proof for deductions/allowances,
correspondence with the Finanzamt,
confirmations or corrections from third parties.

Where and how to appeal — objection, suspension, escalation

Germany provides a clear legal path: file an Einspruch with the issuing tax office within one month of notification; you may submit it online via ELSTER, by post, fax or even simple email (where accepted). In the same letter, ask for Aussetzung der Vollziehung (AdV) to suspend collection until the dispute is resolved if paying now would cause hardship or the assessment is likely wrong. If the objection is rejected, you can go to the Finanzgericht (tax court). Official portals confirm these routes and timelines, and §355 AO codifies the one-month period. Use the channel that gives you a send-and-receive proof.
Your options in Germany:

Einspruch within one month of the notice (AO §355),
electronic or written filing; ELSTER/“simple email” accepted per federal portal,
request AdV (suspension of collection) together with the objection,
if rejected, file suit with the Finanzgericht (tax court),
for minor, clear errors: consider schlichte Änderung (simple change),

Deadlines and practical timing

Deadlines in tax procedures are strict. The one-month period starts upon official notification of the assessment (rules for deemed service are set in the Fiscal Code). If you receive the letter late or electronically, special service rules apply, but assume one month unless proven otherwise. When cash-flow is tight or the claim seems clearly wrong, combine your objection with AdV to avoid enforced collection while the case is reviewed. If an objection fails, the court filing deadline is likewise short, so prepare your file early. Keeping a simple calendar of tax dates in ELSTER avoids expensive mistakes.
Key timing facts:

Einspruch: usually 1 month after notice service (AO §355)
service rules for letters/emails set in the Fiscal Code (disclosure presumptions),
file via ELSTER; keep electronic submission receipts,
consider AdV to suspend collection pending review,
court route (Finanzgericht) if the objection is rejected.

Golden rules to prevent overpayment disputes

Prevention is cheaper than litigation. Reconcile prepayments and bank references quarterly; many payment errors come from missing or wrong Steuernummer or Aktenzeichen in the reference field. Scan and archive all tax-relevant receipts, ELSTER acknowledgments, and letters in one folder. For freelancers, compare anticipated profits with the Finanzamt’s estimates and request adjustments proactively to avoid large year-end mismatches. Finally, when in doubt, call your Sachbearbeiter; short clarifications often defuse issues early.

Best practices:

keep confirmations and statements for at least the assessment period,
always include correct references in transfers,
check your ELSTER inbox monthly,
adjust prepayments proactively when income changes
ask for written confirmations after calls.

A demand for extra payment is not a defeat; it is an administrative checkpoint that can be corrected with facts and within the law. Acting within deadlines, presenting clear evidence, and using the formal tools (Einspruch, AdV) usually resolves the matter without financial damage. Germany’s tax procedure is formal, but predictable — well-prepared taxpayers routinely succeed in getting wrong assessments changed. Treat the notice as a project: define the issue, attach the proof, submit on time, and track the response. That mindset saves both time and money.

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