A letter from the Finanzamt — what now?

You open the mailbox, pull out an official envelope, and there it is at the top: Finanzamt. Take a breath. Most letters from the German tax office are less scary than they look. But almost all of them carry a deadline. Here's how to handle yours.

What kind of letter is this?

The Finanzamt writes to you for a handful of reasons. Usually one of these five:

• Steuerbescheid (tax assessment). The result of your tax return — either a refund or a back-payment.
• Mahnung (reminder). You owe the tax office money and haven't paid yet.
• Auskunftsersuchen (information request). They need documents or an explanation from you.
• Vorauszahlungsbescheid (advance payment notice). Common for freelancers and landlords — you're being asked to prepay tax in quarterly instalments.
• Verspätungszuschlag (late filing penalty). A fine because you filed your tax return after the deadline.

The type is in the subject line, top left. Something like "Bescheid für 2024 über Einkommensteuer" or just "Mahnung".

How the letter is typically structured

Every Finanzamt letter has more or less the same fields. Once you recognise them, you don't need a translator:

Typical next steps to consider

Five steps. Work through them and the letter is sorted:

1. Write the deadline down. Letter date + 3 days + 1 month. Pop it into your phone calendar with a reminder a week before.
2. Check the details. Right name, right address, right tax number? Does the amount match what you expected? Have all your deductions been counted?
3. Decide: agree or not? If it all looks right, just pay (or wait for the refund). If something is missing, wrong, or just feels off — file an objection.
4. File an Einspruch (objection), if needed. It's informal. One sentence is enough: "Hiermit lege ich Einspruch gegen den Bescheid vom [date] ein, Steuernummer [...]." By letter, fax, or via ELSTER. The full justification can come within the next two weeks.
5. Pay, or ask for time. If you owe money and have it: transfer it, done. If you can't manage it right now, write a short informal letter asking for Stundung (deferment) or Ratenzahlung (instalments). The tax office almost always says yes if you ask early.

What can typically happen if there is no response

Ignoring it is the expensive option. What happens depends on the type of letter:

• Tax assessment ignored → after one month it becomes bestandskräftig (final). Even if it's wrong, you can't undo it (rare exceptions aside).
• Back-payment unpaid → from the due date onwards, the tax office adds 1% late-payment surcharge per started month. On €2,000 that's €20 a month, just like that.
• Reminder ignored → the Finanzamt does not send another. It goes straight to enforcement: bailiff, account or wage garnishment are all options.
• Information request ignored → the tax office estimates your income. These estimates are almost always higher than your real figures. You end up paying tax on the estimate.

When is a Steuerberater worth it?

For a simple objection or a normal reminder, you don't need one. When it does make sense:

• The amount is larger amounts.
• You have foreign income, are self-employed, or rent out property.
• The tax office has announced an audit (Außenprüfung).
• You've read the letter three times and still don't know what it wants.

An initial consultation costs €100–200. Usually cheaper than signing something wrong.