How are tax returns checked at the tax office? This is how the exam works.

How are tax returns checked at the tax office? This is how the exam works.

The deadline for submitting tax returns was October 2nd. Now it's the tax offices' turn to check the taxpayers' information. Software is used that checks the tax returns for various plausibility. If any discrepancies are noticed, the affected tax return will be presented to a clerk for inspection. The software already provides information about possible sources of error, such as high donation amounts or above-average advertising costs. The information in the tax return is also automatically compared with data from other departments, such as the employer's payroll tax data, health insurance contributions or pension payments.

This automation and digitalization of tax audits has an impact on the market and the financial industry. On the one hand, the work of the tax offices becomes more efficient and faster because the software takes over a large part of the checks. This allows tax officials to focus more on more complex cases and special audits. On the other hand, taxpayers should be aware that cheating when filing tax returns is increasingly likely to go undetected. By comparing the information with automated data and the software's instructions, discrepancies are quickly uncovered. This can lead to a higher number of additional charges and penalties.

Source: According to a report by www.merkur.de