A loan for back tax payments is not always easy to get. The main reason for this is that an additional tax payment primarily affects the self-employed and freelancers who do not have a fixed income. However, for most banks, a fixed income is the most important requirement for lending.
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Anyone who comes to the conclusion after checking all the documents that they urgently need a loan for the additional tax payment should first get an overview of which banks offer such a loan. In certain circumstances it may also be possible to apply for a normal installment loan and use this loan as a loan for the additional tax payments.
Unlike many other loans, the loans for back tax payments are very unpopular. Nobody can make bigger wishes come true, they just have to pass the money on to the tax office. When looking for a suitable loan, many freelancers and the self-employed will find that it is primarily offered by regional Volksbanks or savings banks. However, this only applies if the applicant has no negative Credit Bureau entries. Otherwise lending would almost always be impossible.
Payment in installments by the tax office
Any person who has to make a large additional payment to the tax office and for some reason cannot receive a loan for the additional tax payment should have this certified in writing. Only then will the tax office be ready to agree to an installment payment agreement for the taxes. Depending on how high the additional tax payment is, this installment payment agreement can extend from 6 to 12 months. This requires an informal application with a detailed explanation of why the taxpayer is unable to take out a loan for the additional tax payment. If the financial situation is particularly precarious, the tax office could even agree to temporarily defer the additional tax payment.
However, nobody should act on their own initiative and simply refrain from paying to the tax office. This could have serious consequences, such as seizure of wages, salaries, property or fees. For this reason, the conversation with the responsible tax office should always be sought and an amicable solution sought.