No High-Rent Deregulation Where No Tax Return Filed

Landlord applied in 2006 for high-rent/high-income deregulation of tenant's apartment and asked for verification of tenant's household income for 2004 and 2005. Tenant answered notice of landlord's application. He claimed that his annual household income was below $175,000 for each of the two years in question. He also stated that he didn't file income tax returns for those years because he was semi-retired and had little income. The DHCR couldn't verify tenant's income with the Department of Taxation and Finance (DTF) because there were no tax returns on file for tenant for 2004 or 2005. The DRA ruled against landlord based on the lack of a tax record match. Landlord appealed, arguing that tenant showed no proof that he wasn't required to file tax returns and that the DHCR should have investigated further. The DHCR ruled against landlord. Tenant isn't required to explain why the DTF can't match any information to its tax records. Tenant submitted a complete answer to landlord's application. The DHCR had no further duty to investigate, and had no authority to make an independent determination of what tenant's income was.

WM Wellington LLC: DHCR Adm. Rev. Docket No. VE410004RO (7/13/07) [5-pg. doc.]