Tenant Amended Tax Return Before High-Rent Deregulation Application Filed

(Decision submitted by David Hershey-Webb of the Manhattan law firm of Himmelstein, McConnell, Gribben, Donoghue & Joseph, attorneys for the tenants.) Landlord applied for high-rent deregulation of tenant's apartment in 2005. Tenant claimed that his total annual household income in 2003 and 2004 was less than $175,000. The DRA ruled for landlord based on information received from the Department of Taxation and Finance (DTF) indicating that tenant's household income was more than $175,000 for each of those years. Tenant appealed and won. Tenant claimed that he had filed amended tax returns for 2003 that stated that the total household income for that year was not more than $175,000. The DHCR sent the case back for further fact-finding. Tenant submitted copies of the amended tax returns and showed that he had filed them before landlord applied for high-rent deregulation. Tenant submitted sufficient proof to question whether the DTF's tax data in this case was accurate. The DHCR must ask the DTF to verify whether tenant filed an amended return, as claimed.

Nessen: DHCR Adm. Rev. Docket No. UH420023RT (1/18/07) [5-pg. doc.]