Tenant Amended Tax Returns for Valid Tax Reasons

Landlord applied for high-rent/high-income deregulation of tenant’s rent-stabilized apartment in 2012. The DRA ruled against landlord, finding that tenant’s household income was less than $200,000 in 2011. Landlord appealed and lost. Landlord pointed out that the State Department of Taxation and Finance (DTF) initially indicated that tenant’s annual household income was more than $200,000 in both 2010 and 2011. But tenant had challenged the accuracy and validity of DTF’s income finding and the DTF issued a corrected statement. Landlord claimed that tenant amended his tax returns while the high-rent/high-income deregulation application was pending to change the DHCR’s result, but tenant showed that he filed amended tax returns in February 2013 and that these were filed for legitimate, valid tax reasons. 

Oxford Towers Co., LLC: DHCR Adm. Rev. Docket No. DV410033RO (1/6/16) [7-pg. doc.]