What if i can't pay my taxes?

Debt is part of everyday life for many private individuals and entrepreneurs. Some have high tax debts. They know that paying taxes is a duty, tax evasion is punishable.

Not paying taxes - that can happen 

If you can't pay your taxes, you get it with the Tax office to do. The tax authorities are generally considered to be one of the most dangerous creditors. Not only that the authority is the first creditor to have access to money and assets. In contrast to other debts, tax debts may never expire (enforcement measures every five years).

• If you do not pay a required tax back payment simply and without comment, you should quickly get into trouble with the tax office. In principle, it does not matter whether you cannot or do not want to pay your taxes.
• After a reminder is ignored by the debtor, the tax office will threaten enforcement measures. Depending on the federal state, the duration and the amount of the arrears, you will quickly realize the threat of foreclosure. The debtor then has to face procedural fees or a blocked bank account
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  account and expect a visit from the bailiff.
• A late payment surcharge of one percent per month is added to the claim. That makes 12 percent a year. The surcharge is generally due in the event of a late payment of taxes or at the end of the due date.


When do tax debts expire at the tax office?

Sales tax, trade tax and income tax - everything should be paid on time ...

Problem with back tax payments - the tax office is the first point of contact

As a tax debtor, you should better notify the tax office of your situation immediately. The authorities are aware that taxpayers, regardless of whether they are private citizens or self-employed, can find themselves in financial difficulties.

• If you have the notification of tax back payment, check it for possible errors. Better to have the tax office's calculations checked by an independent tax expert. at Inconsistencies you can lodge an objection within four weeks of receipt of the tax assessment. This does not change the amount of the claim. A correspondingly amended notification is required for this.
• If you cannot pay your debts to the tax authorities for financial reasons (account empty, unemployed), you have to talk to the responsible tax office. Waiting won't get you anywhere.

Apply for deferment of tax debts

Under certain conditions, you will be granted a tax deferral. Then you can pay your tax debts in installments within an agreed period of time. To do this, you must submit an application to the tax office. This checks whether there is a need for deferral and whether it is worth deferral.

• You are deemed to be in need of deferral if the immediate payment is viewed as significant hardship because your material existence is too seriously endangered. That doesn't mean you can't expect one credit to include in debt settlement. You are worthy of deferral if you are innocent in financial distress. That would be the case with a long illness.
• The tax office will only agree to a deferral if the authority is convinced that the tax liability can and will be paid in this way. In the application, you must demonstrate that you are only temporarily in financial distress. In contrast to the normal late payment surcharge, the interest surcharge for deferral is 0.5 percent per month. The deferral is usually granted for a period of six months.

Work with the tax office to the best of your ability. If you show yourself uncooperative, you can end up in prison. The obligation to pay also remains, a Replacement custodial sentence as with unpaid administrative offenses, there is no here.