Tax authorities carry out the tax declaration project in Hesse
Hesse Launches Innovative Tax Pilot Project
The state of Hesse has taken a significant step towards modernising tax administration with the launch of a pilot project that aims to streamline the income tax filing process. The project, announced by State Finance Minister Alexander Lorz in Wiesbaden, will see approximately 6,000 taxpayers in the Kassel tax office jurisdiction receive an automatic income tax assessment proposal.
The proposal, based on data such as wages, pensions, and insurance, will be sent to taxpayers who missed the deadline for filing their 2024 income tax returns. These taxpayers will not be required to submit a separate tax return; instead, they can either accept the proposal or modify it using the Elster software platform. If no action is taken within a four-week period, the tax office will issue the tax assessment.
The project is designed to be voluntary, giving taxpayers full control over any corrections. It is also open only to those who are obliged to file an income tax return and are not legally represented or advised. This includes individuals receiving replacement income such as unemployment benefits, parental benefits, or short-time work benefits of more than 410 euros per year, or those with multiple employers. Freelancers, self-employed individuals, and business owners in Hesse are also required to file a tax return.
The German Tax Union, represented by Florian Köbler, the federal chairman, views the Hessian pilot project as an important step towards a modern, citizen-friendly tax administration. Köbler believes that full digitalization could allow tax officials to focus on complex and important cases instead of manual processing of standard cases.
The chairman of the Federal Association of Taxpayers in Hesse, Joachim Papendick, also considers the Hessian pilot project a step in the right direction. He believes that the project has the potential to relieve citizens and increase the efficiency of the tax administration.
If successful, the Hessian pilot project may be expanded. However, for large-scale implementation, further joint steps by the federal government and other states are needed. The ultimate goal is to simplify the tax filing process, making it more accessible and user-friendly for all citizens.
Financial innovations are at the heart of the Hessian pilot project, as it aims to streamline the income tax filing process for businesses and individuals. In the upcoming days, approximately 6,000 taxpayers will receive an automatic income tax assessment proposal based on their wages, pensions, and insurance data, eliminating the need for a separate return in cases where they missed the deadline for the 2024 tax year. This voluntary project, open only to certain individuals, is one step towards a modern, digitalized, and citizen-friendly tax administration in Hesse.
