What To Do If My Landlord Is Not Reporting Rental Income

Landlord Protection What To Do If My Landlord Is Not Reporting Rental Income

Take Action Against a Landlord Who Is Not Reporting Income With DoNotPay

hat's designed to put cash back into the hands of paying tenants who are leaving at or just above the poverty threshold. These kickbacks are a great way for people to reclaim some of the money that they've paid throughout the year for leased properties. But what happens if you have a ? Failure on the part of landlords to report these monies can make it all but impossible for tax-paying tenants to get the relief they need.

As the world's very first robot lawyer, DoNotPay has ample experience in dealing with landlord issues like these. With DoNotPay, you can make sure that the monies your spend to lease an apartment, townhouse, condo, or home are duly reported to the IRS. You can also get the necessary documents for claiming your rent monies and qualifying for your tax credit.

What Is the Renter's Tax Credit?

There are currently 11 states that offer the . These are:

OregonConnecticutRhode Island

The renter's tax credit is a non-refundable tax credit that states provide to renters typically earning $45,000 less per year or less. Depending upon where you live and where you apply for this credit, it can be as high as $60 per person or $120 per household. In fact, in some states, this credit may even be higher. These are monies that are meant to limit the financial hardship of renting for low-income households by providing a small return at the end of the year. You can learn more about the renter's tax credit and what to do about a  by visiting the official website of the State Franchise Tax Board for the state in which you reside.

Why Does My Landlord Need to Report Rental Income?

When landlords don't report their rental income, tenants who are qualified to receive this credit may not be able to get it. Just as you need to submit several of your own documents to qualify for this credit, your landlord will have documents to submit as well. Landlords are legally required to report or claim rental income for their own tax purposes as well. Failing to do so is a tax crime.

What Are My Rights as a Tenant?

Renters' rights vary from location to location. If you live in one of the 11 states that offer the non-refundable renter's tax credit and your landlord isn't reporting rental income, you should take the time to research the rights that tenants have in your state and local jurisdiction. You can do this online using multiple resources, or you can collect the information you need from DoNotPay. With DoNotPay, you can quickly get answers to questions like:

You can also use DoNotPay to find out how to report a landlord not paying tax if your landlord's failure to report rental income is preventing you from getting the rental tax credit. Landlords who do not report rental income can also make it difficult for tenants to qualify for many social service programs, including rental assistance programs and long-term housing subsidization programs.

What Are the Consequences of Not Reporting Income on a Rental Property?

When landlords do not report the income they receive from tenants, it may it hard for renters to take advantage of things like the renter's tax credit and other forms of renter support. Penalties can be leveraged on landlords who fail to report rental income to the IRS. When failure to report income is an honest mistake, a 'Failure to Report" penalty of 0.05 percent per month will be applied. This penalty can be as much as 25 percent of the total amount of tax owed.

When landlords intentionally fail to report monies they've earned from renters, the consequences are far more severe. Intentionally failing to report rental income can result in landlords having to pay interest of 20 percent of the amount underpaid as well as a 75 percent penalty on all taxes due. To collect these monies, the IRS can:

  1. Collect tax refunds owed
  2. Seize bank accounts
  3. Place liens against properties
  4. Even garnish a landlord's wages

How to Report a Landlord Not Paying Tax

If you suspect that your landlord is guilty of tax fraud, you can fill out IRS Form 3949A and submit it to the IRS. You can also report suspected fraud to your State Franchise Tax Board by visiting its official website and looking for information on fraud reporting.

Next Steps if You Can’t Get the Documents You Need From Your Landlord on Your Own

Reporting Fraud to the IRS and to the State Franchise Tax Board will notify these entities of the taxes that they're owed, but it won't necessarily improve your immediate circumstances if you need tax documents from your landlord. It can take weeks or even months for either agency to respond to you. If you are waiting to file for a renter's tax credit or need tax information from your landlord to obtain rental assistance from a local social services agency, using DoNotPay is a far better choice. DoNotPay can help you report tax fraud, demand documents from your landlord, and take other timely legal actions.

Why Use DoNotPay to Take Action Against a Landlord Not Reporting Rental Income?

DoNotPay can help you avoid a number of landlord-related issues. With the Landlord Protection product from DoNotPay, you can:

  • Resolve disputes with your landlord concerning unit repairs
  • Get information on the eviction laws in your state or local jurisdiction
  • Resolve disputes with your roommates
  • Get your security deposit back

You can also use the Landlord Protection product to break your lease early.

If you want to break a lease in [state] but don't know where to start, DoNotPay has you covered in 4 easy steps:

1. Search for and open the Landlord Protection product on DoNotPay.


2. Select which issue applies to you.


3. Answer a simple set of questions so our chatbot can collect the necessary information to create your demand letter.


4. Choose whether you want DoNotPay to send the demand letter to your landlord or roommate on your behalf. If you already tried sending a demand letter and it didn't work, we can help you start the small claims court process.


Using DoNotPay to resolve landlord problems is always quick, easy, and successful. As the world's first robot lawyer, DoNotPay is the ideal tool to use whenever you're unsure about what your rights are, feel as though your rights are being violated, or need knowledgeable legal guidance and support.

What Else Can DoNotPay Help With?

DoNotPay can help you solve a vast range of problems with virtually no effort on your part. You can use DoNotPay to quickly and easily:

And access and complete standardized documents. If you want to take action against a  or taking care of any frustrating, complex task, sign up for DoNotPay today!

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