Tax Implications for Illegal LL Overcharges on RS Apts

[mjr203]

I know that LLs get Tax Breaks for owning rent stabilized apartments. These tax breaks are in part based on the premise that the LL keep the rent legal. If the LL overcharges shouldn't he lose the tax benefits gained by owning a RS apartment/building. He is cheating the system.

My basic question is then, if tenant takes legal or DHCR action and a LL is found to have been overcharging, are they then subsequently audited or fined or investigated?

-POINTER

[Phil Cohen]

Probably not--unless their tenants tell the IRS, which is an excellent idea.
I believe tax whistleblowers get financial rewards of some kind.