Tenant Didn't File Tax Returns

Landlord applied for high-rent/high-income destabilization of tenants' apartment in 1995, claiming that the legal rent for the apartment was $2,000 or more per month and asking for verification that tenants' annual household income was greater than $250,000 for the prior two years. Tenants claimed that their income was below the threshold and stated that they didn't file New York State tax returns for the years in question because their income was so low that they didn't have to. The DRA ruled against landlord since the Department of Taxation and Finance (DTF) couldn't match a tax return for tenants. Landlord appealed and lost. Tenants had advised the DHCR that no tax returns were filed and this explained why the DTF couldn't make a match with its tax records. The DHCR had no further responsibility to investigate tenants' income. If DTF can't verify the income, the DHCR can't deregulate the apartment.

64th Street - 3rd Avenue Assocs.: DHCR Adm. Rev. Dckt. No. KK410033RO (3/26/98) [3-page document]