DHCR Must Further Investigate Missing Tax Returns

Landlord applied for high-rent/high-income deregulation of tenant's rent-stabilized apartment in 2006. Tenant answered and claimed that her annual household income was less than $175,000 for both 2004 and 2005. Tenant also stated that she filed tax returns with the State of New York for these years. The DHCR asked the Department of Taxation and Finance (DTF) to verify that tenant had filed returns and that her household income was below the deregulation threshold. Because the DTF was unable to find tenant's tax returns on file, the DHCR ruled against landlord and dismissed the application. Landlord appealed and argued that the DHCR should investigate further.
The DHCR ruled for landlord and reopened the case. Because tenant stated that she had filed tax returns for the years in question, the DHCR should investigate further. In a prior case, a court similarly ruled that where the DTF was unable to make a match with its tax records, the DHCR should make additional efforts to verify tenant's tax information.

365 West End Avenue LLC: DHCR Adm. Rev. Docket No. XD410042RO (8/20/09) [4-pg. doc.]