No Deregulation Where No Tax Match Found

 Landlord applied in 2011 for high-rent/high-income deregulation of tenant’s rent-stabilized apartment. Tenant claimed that his annual household income was below $175,000 in both 2009 and 2010. The DRA ruled for tenant and dismissed landlord’s application after no tax match was found to verify tenant’s income on the State Department of Finance database. Landlord appealed and lost. Landlord argued that the DHCR should have investigated further. But tenant stated that he didn’t file tax returns for the years in question because he wasn’t required to do so. And the DHCR had no obligation to investigate further. In cases where courts have ruled that it was appropriate for the DHCR to look further, tenants had stated that they did file tax returns.

125 E 31st Street Realty LLC: DHCR Adm. Rev. Docket No. CU410039RO (5/26/14) [4-pg. doc.]