A model notice of appeal for crypto cases
Almost every contested question in German crypto taxation is currently before a court. Anyone who lets their assessment become final shares in none of those decisions. An appeal costs one letter and a deadline of one month.
- The period is one month from notification and cannot be extended, section 355 AO.
- To preserve the deadline the appeal alone suffices; the reasons may follow.
- On a joint assessment, the appeal belongs expressly in the name of your spouse or partner as well.
- Where a case is pending before the Federal Fiscal Court the proceedings are stayed by operation of law — not so for tax courts.
- The appeal does not suspend enforcement. Suspension has to be applied for separately.
- Note: in the appeal procedure the tax office may also amend to your detriment, section 367(2) AO.
When an appeal is worthwhile
Not every assessment has to be challenged. On these six points, almost always.
| Point in dispute | What is at issue | Case |
|---|---|---|
| Lending | Classification of the income and the reach of the concept of money in section 20(1) no 7 EStG | BFH VIII R 22/25 |
| Airdrops | Whether merely holding a domain is a supply under section 22 no 3 EStG | FG Baden-Württemberg 4 K 2402/25 |
| Wallet separation | Whether the disposal sequence must be determined separately per wallet | FG Niedersachsen 10 K 165/23 |
| Disposal sequence | Which methods are permissible within a wallet | FG Berlin-Brandenburg 4 V 4039/26 |
| Staking accrual | Whether unclaimed rewards count as accrued at the end of the year | unresolved so far |
| Estimates | Acquisition costs entered at zero where documents are missing | case by case |
The heading of this section is cautiously put. Our actual advice is blunter: lodge an appeal if your case touches one of the open questions — and it does so more often than it looks when you read the assessment.
The lending case shows why. At first sight it is only about a rate of tax. In fact far more turns on whether a crypto asset is money or an asset of another kind: the offset pool for losses, the deductibility of expenses, the reach of the holding period — and indirectly even the extended trade tax deduction for property companies. We set this out in several places.
Anyone who sees these connections at the moment the assessment arrives is the exception. The appeal itself costs no fee at the tax office and, where a test case is pending, no litigation risk. Finality, by contrast, is permanent.
The four points in dispute · The lending case · The offset pools
An appeal documents that a position was seriously in dispute. That matters well beyond the amount of tax: what is contested before a court can hardly have been evaded intentionally. If a position drops out of the amount evaded, the surcharge under section 398a AO falls — possibly below a band. Our article on limitation and the surcharge
Deadlines and form
The part on which most appeals fail — not on the substance.
The appeal period is one month from notification of the assessment, section 355(1) of the Fiscal Code. Where it is sent by ordinary post, the assessment is deemed notified on the third day after posting, section 122(2) no 1. Where that third day falls on a Saturday, Sunday or public holiday, the start moves accordingly.
German is the official language of the tax authorities, section 87(1) of the Fiscal Code. That does not make a foreign-language appeal invalid. Section 87(2) gives the authority a discretion to request a translation, and section 87(4) then protects you: the appeal counts as submitted on the day it arrived, provided you supply the translation within the reasonable period the authority sets. It must point out that consequence when setting the period. In practice English is often simply accepted without any request at all.
The residual risk sits in that second deadline. If the translation is not supplied in time, the date the translation arrives governs — and by then the month for appealing has usually run. You would be relying on restoration under section 110, which is a far weaker position than not needing it.
So the wording further down is given in German: not because English would fail, but because German removes an extra step, an extra deadline and any argument about it. The English beneath each block tells you what you are signing.
It must be apparent who is lodging it and which administrative act it is directed against. Section 357 of the Fiscal Code requires no more — describing it as an "Einspruch" is not even essential where the intention is apparent. Written form is satisfied by letter, fax or electronic transmission through the procedure provided for that purpose.
An email to a general inbox at the tax office is risky. Anyone using it should be able to evidence receipt — or better, choose the route that documents itself.
Where the deadline has already run
- Restoration under section 110 of the Fiscal Code, where you were prevented without fault. The application must be made within one month of the impediment falling away, and the omitted act made good.
- Subject to review: where the assessment is issued subject to review under section 164, an amendment is possible at any time until the assessment period expires — an appeal is then not needed at all.
- Provisional under section 165: where the assessment is declared provisional on a point, that point stays open anyway.
- New facts under section 173, or an obvious inaccuracy under section 129, can support an amendment even after finality.
The structure of an appeal
Four parts every appeal should have — in this order.
Tax number, type of assessment, tax year, date of the assessment. Then the sentence that an appeal is lodged. That part alone already preserves the deadline.
What is to happen? Amendment on a particular point, a stay of proceedings, and where appropriate suspension of enforcement. Applications belong before the reasons, so that the officer sees immediately what is being asked.
The facts briefly, then the legal question with its source and — this is the decisive point — the case number of the pending proceedings. Without a case number there is no ground for a stay.
Only what is needed. A complete transaction history does not belong in an appeal unasked — it widens the scope of the review without serving the legal question.
- Sec. 355 AOone month from notification
- Sec. 122(2) AOnotification on the third day after posting
- Sec. 357 AOform and minimum content
- Sec. 87(1) AOGerman is the official language
- Sec. 87(4) AOa foreign-language filing keeps its date if a translation follows on request
- Sec. 361 AOno suspensive effect
- Sec. 363(2) s. 2stay by operation of law where a BFH case is pending
- Sec. 367(2) AOamendment to your detriment possible, with notice
- Sec. 110 AOrestoration where the default was not your fault
The wording in the next section is deliberately short. An appeal convinces not by length but by the right authority in the right place.
Wording, by point in dispute
To adapt to your own case. The German text is what we would send; the case number and the facts must be checked before use.
Where the deadline is pressing and the case is not yet thought through, this one sentence suffices. Everything else may follow.
Betreff: Einspruch gegen den Einkommensteuerbescheid [Jahr] vom [Datum], Steuernummer [Nummer].
„Gegen den oben bezeichneten Bescheid lege ich form- und fristgerecht – auch im Namen meiner Ehepartnerin beziehungsweise meines Ehepartners – Einspruch ein. Die Begründung folgt."
In English: subject line naming the income tax assessment for [year] dated [date] and your tax number; then: I hereby lodge an appeal against the above assessment in due form and within the deadline, also in the name of my spouse. The reasons will follow.
The reference to your spouse matters on a joint assessment: the assessment is addressed to both of you, and an appeal in your own name alone does not necessarily preserve the deadline for the other person. The same applies to registered civil partnerships.
Betreff: Einspruch gegen den Einkommensteuerbescheid [Jahr] vom [Datum], Steuernummer [Nummer].
„Gegen den oben bezeichneten Bescheid lege ich hiermit fristgerecht Einspruch ein. Ich beantrage, den Bescheid dahingehend zu ändern, dass [Antrag]. Ferner beantrage ich, das Verfahren nach § 363 Abs. 2 AO ruhend zu stellen, bis über das nachstehend bezeichnete Verfahren entschieden ist. Die Begründung folgt."
In English: an appeal is lodged within the deadline; an application is made to amend the assessment so that [application]; a further application is made to stay the proceedings under section 363(2) AO until the case named below has been decided; the reasons will follow.
„Die Ermittlung des Veräußerungsgewinns beruht auf einer walletbezogenen Betrachtung nach Rn. 62 des BMF-Schreibens vom 6. März 2025. § 23 EStG enthält keine Regelung zur Verbrauchsfolge und knüpft die Zuordnung nicht an den Aufbewahrungsort der Schlüssel. Zu dieser Frage ist beim Finanzgericht Niedersachsen das Verfahren 10 K 165/23 anhängig."
In English: the gain has been computed on a wallet-by-wallet approach under paragraph 62 of the ministry circular of 6 March 2025. Section 23 EStG contains no rule on the disposal sequence and does not tie attribution to where the keys are stored. Case 10 K 165/23 on this question is pending before the Lower Saxony Tax Court.
„Die Zuteilung wurde als sonstige Einkünfte aus Leistungen erfasst. Eine Leistung im Sinne des § 22 Nr. 3 EStG liegt nicht vor: Die Zuteilungsbedingungen wurden erst nach dem maßgeblichen Stichtag veröffentlicht, sodass das Verhalten nicht um des Entgelts willen erbracht wurde. Nach Rn. 72 des BMF-Schreibens wird der Zurechnungszusammenhang zudem durch das Zufallselement unterbrochen. Zu dieser Frage ist beim Finanzgericht Baden-Württemberg das Verfahren 4 K 2402/25 anhängig."
In English: the allocation was recorded as other income from supplies. There is no supply within section 22 no 3 EStG: the allocation terms were only published after the relevant date, so the conduct was not undertaken for the sake of a consideration. Under paragraph 72 of the circular the attribution is additionally interrupted by the element of chance. Case 4 K 2402/25 on this question is pending before the Baden-Württemberg Tax Court.
„Die Erträge aus der Überlassung von Kryptowerten wurden als sonstige Einkünfte erfasst. Die zutreffende Einordnung und die Reichweite des Geldbegriffs in § 20 Abs. 1 Nr. 7 EStG sind Gegenstand des beim Bundesfinanzhof anhängigen Verfahrens VIII R 22/25. Ich berufe mich auf § 363 Abs. 2 Satz 2 AO; das Verfahren ruht damit kraft Gesetzes."
In English: the income from transferring crypto assets for use was recorded as other income. The correct classification and the reach of the concept of money in section 20(1) no 7 EStG are the subject of case VIII R 22/25 pending before the Federal Fiscal Court. I rely on section 363(2) sentence 2 AO; the proceedings are therefore stayed by operation of law.
„Die Anschaffungskosten wurden mit null angesetzt. Nach Rn. 92 des BMF-Schreibens ist Ziel der Schätzung, den tatsächlichen Verhältnissen möglichst nahe zu kommen; sie darf nicht dazu dienen, Steuerpflichtige zu sanktionieren. Fehlen nur vereinzelte Angaben, sind die im Übrigen vorgelegten Unterlagen im Rahmen der Schätzung zu würdigen. Beigefügt sind [Unterlagen], aus denen sich ein realitätsnäherer Ansatz ergibt."
In English: the acquisition costs were entered at zero. Under paragraph 92 of the circular the aim of an estimate is to come as close as possible to the actual circumstances; it must not serve to penalise taxpayers. Where only isolated details are missing, the other documents produced are to be taken into account in the estimate. Enclosed are [documents], from which a more realistic figure follows.
Where a case is pending before the Federal Fiscal Court, the Federal Constitutional Court or the European Court of Justice, the appeal is stayed under section 363(2) sentence 2 AO by operation of law as soon as you rely on it. The tax office has no discretion.
Where the case is before a tax court, that does not apply. There only a stay on grounds of expediency under sentence 1 comes into question, and that requires the tax office's consent. If consent is refused, the appeal has to be argued on its substance — so the application should in the alternative seek a decision on the merits.
Suspension of enforcement
The appeal alone does not hold off the demand for payment.
Under section 361(1) of the Fiscal Code the appeal does not suspend enforcement. The tax assessed falls due on the date stated, regardless of whether the appeal has been decided. Anyone who does not want to pay, or cannot, must apply separately for suspension of enforcement.
Suspension is granted where there are serious doubts about the legality of the assessment, or where enforcement would be an unreasonable hardship. Serious doubts are close at hand where a case on the same question is pending — which is regularly so with the crypto questions.
„Ich beantrage, die Vollziehung des angefochtenen Bescheids in Höhe von [Betrag] bis zum Abschluss des Einspruchsverfahrens auszusetzen. An der Rechtmäßigkeit bestehen ernstliche Zweifel, weil die zugrunde liegende Rechtsfrage Gegenstand des Verfahrens [Aktenzeichen] ist."
In English: I apply for enforcement of the contested assessment to be suspended in the amount of [amount] until the appeal procedure is concluded. There are serious doubts about its legality, because the underlying legal question is the subject of case [case number].
If the appeal is ultimately unsuccessful, interest on the suspended amount runs at 0.5 per cent for each full month, section 237 together with section 238 of the Fiscal Code. Over a suspension lasting three years that is 18 per cent.
Suspension is therefore not a matter of course but a calculation: anyone with liquid funds who does not rate the prospects highly does better to pay and be refunded later. Conversely, with solid prospects and tight liquidity, suspension can be the right choice.
On the disposal sequence, the Berlin-Brandenburg Tax Court granted suspension by order of 12 June 2026 (4 V 4039/26). Orders of that kind are a strong argument in comparable cases. All our cases
What can go wrong
Four points to weigh before sending.
Amendment to your detriment
The tax office reviews the whole assessment, not only the point challenged, section 367(2) sentence 1 AO. It may also amend to your detriment, but must give notice of this and an opportunity to respond. After that notice the appeal can be withdrawn — the original assessment then stands.
The appeal as an opening
Enclosing a complete transaction history unasked supplies material for questions nobody put. Enclose what supports the legal question — no more. That is not concealment but confining yourself to the matter in dispute.
A missing case number
An application for a stay that does not name the pending case goes nowhere. Check the case number before sending — cases conclude, and lower courts and appeals get confused.
Voluntary disclosure and appeal at once
Where undeclared matters stand alongside the legal question, the order is decisive. An appeal that reveals new facts can trigger the statutory bar. Here both belong in one pair of hands. Voluntary disclosure
- The date of the assessment is noted, the deadline calculated, a reminder set
- Type of assessment, tax year and tax number appear in the subject line
- On a joint assessment, the spouse or partner is expressly named
- The applications come before the reasons
- The case number of the pending proceedings has been checked and named
- For a case before the Federal Fiscal Court, section 363(2) sentence 2 AO is relied on
- A deliberate decision has been taken on suspension of enforcement
- Only the enclosures needed for the legal question are attached
- Preferably drafted in German, and the route of dispatch documented
Questions and answers
How long do I have to appeal?
Does the appeal have to be reasoned already?
Must the appeal be written in German?
What does a stay of proceedings mean?
Do I still have to pay while the appeal runs?
Can an appeal increase my tax?
Is an appeal worth it if I will probably lose the legal point?
Legal position: 25 August 2026. Sources: sections 87(1), 87(2), 87(4), 110, 122(2), 129, 164, 165, 173, 237, 238, 355, 357, 361, 363(2) and 367(2) of the Fiscal Code; Federal Ministry of Finance circular of 6 March 2025, paragraphs 62, 72 and 92.
Cases: BFH VIII R 22/25; FG Baden-Württemberg 4 K 2402/25; FG Niedersachsen 10 K 165/23; FG Berlin-Brandenburg 4 V 4039/26 (suspension granted by order of 12 June 2026).
The German passages are suggested wording and do not replace an examination of the individual case. Case numbers and deadlines must be checked independently before use; pending cases may have concluded. The English renderings are given for understanding; the recommendation to file in German is a practical one, not a condition of validity. This article is not advice on an individual case. Where this English text and the German version differ, the German version governs.