No High-Rent Deregulation Even Though Tenant Didn't File Tax Returns

Landlord applied for high-rent/high-income deregulation of tenant's apartment. Tenant claimed that his income was below the deregulation threshold. The DRA dismissed landlord's application after finding no matching income tax verification information with the New York State Department of Taxation and Finance (DTF). Tenant said he hadn't filed tax returns in either of the years in question, because he was retired and had no income. Landlord appealed and lost. Landlord argued that the DHCR should investigate further. The DHCR said that tenant wasn't required to explain why the DTF couldn't match his tax records, although he did so. The DHCR also had no further obligation to investigate the matter. Federal and state tax authorities had their own legal procedures and remedies for enforcing compliance with tax laws and regulations. The DHCR wasn't authorized to make an independent ruling on tenant's income.

40 Central Park S.: DHCR Adm. Rev. Docket No. UD410002RO (9/15/06) [4-pg. doc.]