An objection (Einspruch) against an incorrect tax assessment notice (Steuerbescheid) can be lodged within one month of notification, as provided for in § 355 of the German Fiscal Code (Abgabenordnung, AO). Anyone who misses this deadline risks the notice becoming final and binding (bestandskräftig). Errors can then only be corrected under narrow conditions, for example obvious clerical or arithmetical errors under § 129 AO.
This guide explains when an objection makes sense, how the deadline is calculated, which form must be observed and what happens after the objection has been lodged. Using concrete examples, we show what matters in practice.
When is an objection against a tax assessment notice worthwhile?
An objection is always an option if the tax assessment notice (Steuerbescheid) deviates from the tax return submitted, the tax office (Finanzamt) has not recognised expenses or arithmetical errors have occurred. Common reasons include income-related expenses (Werbungskosten) not taken into account, rejected special expenses (Sonderausgaben), incorrect determinations of income or doubts about the tax treatment of a set of facts.
An objection can also make sense if test proceedings (Musterverfahren) on a disputed legal question are pending before the Court of Justice of the European Union, the Federal Constitutional Court (Bundesverfassungsgericht) or the Federal Fiscal Court (Bundesfinanzhof), in order to keep one's own proceedings open. If the objection is based on those proceedings, it is suspended by operation of law under § 363 Abs. 2 Satz 2 AO until the question has been resolved, unless the notice has in any case been issued provisionally in that respect.
However, not every objection leads to an improvement. The tax office re-examines the entire notice, so a higher tax assessment is also possible as a result. More on this below.
Which deadline applies to the objection?
Under § 355 Abs. 1 AO, the objection period is one month after notification of the tax assessment notice. For a notice sent by post, the fiction of notification under § 122 Abs. 2 Nr. 1 AO applies: since 1 January 2025, the notice is deemed to have been notified on the fourth day after it was posted (previously a three-day fiction applied), regardless of when it actually arrives in the letterbox. If the notice contains no information on legal remedies (Rechtsbehelfsbelehrung) or if this information is incorrect, the objection period is extended under § 356 Abs. 2 AO to one year from notification.
Example: a tax assessment notice is posted on Thursday, 3 September 2026. It is deemed notified on the fourth day thereafter, i.e. on Monday, 7 September 2026. The objection period then runs until Wednesday, 7 October 2026, 24:00. If the fourth day or the end of the period falls on a Saturday, Sunday or public holiday, the date is postponed to the next working day under § 108 Abs. 3 AO.
How is the objection lodged correctly?
Under § 357 Abs. 1 AO, the objection must be lodged with the tax office in writing, electronically or by declaration recorded in minutes (zur Niederschrift). It must be evident from it who is lodging the objection. In addition, under § 357 Abs. 3 AO, it should identify the contested notice, ideally with its date and tax number.
A statement of reasons is not strictly required at the time of lodging, but should be submitted as soon as possible so that the tax office can examine the matter. A complete letter of objection should contain the following information:
- Name, address and tax number of the taxpayer - Date and tax number of the contested notice - an express declaration that an objection is being lodged - where possible, brief reasons referring to the points complained of - signature if lodged in writing
What happens after the objection has been lodged?
The objection leads to a re-examination of the entire tax assessment notice, not just the point complained of. This means that, under § 367 Abs. 2 AO, the tax office can also correct errors to the detriment of the taxpayer, the so-called reformatio in peius (Verböserung). Before such a change for the worse, however, the tax office must point out this possibility, giving reasons, and provide an opportunity to comment. This leaves time to withdraw the objection.
As a rule, an objection does not suspend enforcement of the notice. Anyone who does not wish to pay the assessed tax for the time being must additionally apply for suspension of enforcement (Aussetzung der Vollziehung) under § 361 AO. This application is granted if there are serious doubts as to the lawfulness of the notice or if enforcement would cause undue hardship.
The tax office can remedy the objection in whole or in part or reject it. For important reasons, it can suspend the proceedings with the consent of the taxpayer. If test proceedings are pending before the Federal Fiscal Court (Bundesfinanzhof, BFH) and the objection is based on them, the proceedings are even suspended by operation of law (§ 363 Abs. 2 AO).
What happens if the deadline is missed?
If the objection period is missed, reinstatement to the previous position (Wiedereinsetzung in den vorigen Stand) under § 110 AO can be applied for under certain conditions. The prerequisite is that the deadline was missed through no fault of one's own, for example due to sudden serious illness or a demonstrable delivery error.
The application for reinstatement must be filed within one month of the obstacle ceasing to exist, and the omitted act, i.e. lodging the objection, must be made up for within this period. The reasons for the impediment must be substantiated (glaubhaft gemacht). Mere work overload or a mistake about the legal situation are generally not sufficient for reinstatement. After one year has elapsed since the end of the missed deadline, reinstatement is only possible in cases of force majeure (§ 110 Abs. 3 AO).
If the deadline has been definitively missed and there are no grounds for reinstatement, the tax assessment notice becomes final and binding. An amendment is then only possible under the narrow correction provisions, for example in the case of obvious inaccuracies under § 129 AO or new facts under § 173 AO, in each case only within the assessment period (Festsetzungsfrist).
How do things proceed after a decision on the objection?
If the tax office rejects the objection by means of a decision on the objection (Einspruchsentscheidung), the route to the fiscal court (Finanzgericht) remains open. Under § 47 of the Code of Procedure for Fiscal Courts (Finanzgerichtsordnung, FGO), the action must be filed with the competent fiscal court within one month of notification of the decision on the objection.
If the tax office does not deal with the objection at all for a longer period, an action for failure to act (Untätigkeitsklage) may be considered under the conditions of § 46 FGO, but as a rule only after six months have elapsed without a material reason for the delay.