- If a late-filing penalty was originally imposed as a mandatory decision under Section 152(2) AO, and the VAT assessment is later changed during litigation so that the taxpayer has a refund instead of a tax liability, a new penalty assessment can still become part of the ongoing lawsuit under Section 68 sentence 1 FGO.
- This applies even if the new penalty assessment is then based on Section 152(1) AO and is therefore a discretionary decision rather than a mandatory one.
- The BFH thus held that the later penalty notice remains procedurally connected to the original challenge.
Source: datenbank.nwb.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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