Hesse witnesses the execution of a tax declaration project by the local tax authority - Tax authorities initiate the tax declaration project in Hesse
Automated Income Tax Assessments to Be Tested in Hesse
In a significant move towards modernising tax administration, the Hesse region is set to launch an income tax pilot project. The initiative, named "Income Tax: The Tax Office Prepares the Tax Return," will see around 6,000 taxpayers in Kassel receive an automatic proposed income tax assessment from their local tax office in 2025 [1].
The proposal is based on data that the tax office already holds due to mandatory reporting laws, including information on wages, pensions, and insurance [1]. The taxpayers will receive the proposal by the end of August 2025, and if they agree with it, they will not need to submit a separate tax return. After four weeks, the proposed assessment will automatically become the official tax assessment [1].
However, it's important to note that if the proposal does not include all income for 2024, taxpayers must still file a full tax return [1]. The prerequisite for the pilot project is that the respective taxpayer is obligated to submit an income tax return and is not represented or advised in tax matters [1].
The project aims to simplify the tax filing process for citizens and improve administrative efficiency. Hessian Finance Minister, Alexander Lorz, sees this method as a next step towards a more citizen-friendly tax administration [1]. The project is currently in its initial rollout phase for the 2024 tax year, and the results will likely inform future broader implementation or adjustments [1].
If successful, the program could save resources for the tax office and relieve taxpayers. Joachim Papendick, chairman of the Bund der Steuerzahler Hessen, sees the project as a step in the right direction [1]. Florian Köbler, federal chairman of the German Tax Union, believes that the project could allow tax officials to focus on complex cases [1].
The project presentation was attended by Finance Minister Alexander Lorz (CDU) in Wiesbaden [1]. However, it's worth mentioning that not everyone in Germany is obligated to submit an income tax return [1]. It is still possible to submit a self-prepared income tax return.
More joint steps from the federal government and other states are needed to fully implement the agency's processing of tax returns on a large scale [1]. The German Tax Union welcomes the project as an important step towards a modern, citizen-friendly tax administration [1].
In conclusion, the income tax pilot project in Hesse represents a significant step towards a more efficient and user-friendly tax system. The results of the pilot project will be closely watched, with hopes that it could pave the way for broader implementation in the future.
References: [1] Source for the information provided in the article.
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