Tenant Claimed Delay in Filing Tax Returns

Landlord applied for high-rent/high-income deregulation of tenant's rent-stabilized apartment in 2010. Tenant claimed that his annual household income was below the $175,000 deregulation threshold in both 2008 and 2009 but stated that he hadn't filed income tax returns for those years because he was waiting for "K1" information. The DRA ruled against landlord because the DTF couldn't match a tax return for tenant for either year in question. Landlord appealed, and the case was reopened. Landlord argued that the DHCR should have made further inquiries and taken additional steps to investigate tenant's income. The DHCR agreed. Since tenant hadn't filed tax returns for the two applicable years, and claimed that he was waiting for additional information to do so, the DRA should have asked tenant more about this and whether he had made valid extension requests to the DTF.

254 PAS Property LLC: DHCR Adm. Rev. Docket No. AT410065RO (5/10/13) [3-pg. doc.]