Tenant Didn't File Tax Returns

Landlord applied for high-rent/high-income deregulation of rent-stabilized tenant’s apartment in 2008 when tenant’s monthly rent was $2,000 or more. Tenant claimed that her household income for 2006 and 2007 was less than $175,000 for each year. Tenant also said she didn’t file income tax returns either year because she was 71, blind, and unable to read or walk. In response to follow-up notices, tenant advised the DRA that she still hadn’t filed tax returns for those years. The DRA then ruled for landlord based on tenant’s failure to provide all required income verification information.

Tenant appealed and the case was reopened. Tenant’s apartment should be deregulated due to default in this case because tenant showed good cause. Tenant responded to the DRA’s notices and adequately explained her failure to file her tax returns. She stated that she wouldn’t be filing income tax returns for 2006 and 2007 because she didn’t work. Therefore, tenant shouldn’t be held in default for not filing tax returns. Enforcement for any improper failure to file tax returns is left to federal and state tax authorities. The case was sent back to the DRA to make a ruling on the merits.

Moor-Jankowski: DHCR Adm. Rev. Docket No. DU410015RT (8/4/16) [7-pg. doc.]