She complained to the city and we were forced to pay for oil as well as the citations/fees associated with her complaint.

Upon receipt, the county will send out the code enforcement officer to inspect that property, contact the owner, follow-up to ensure corrective action, and even pursue legal action/citation if the owner fails to comply. 

However, I received a citation from the city about non registration of my property which came as a shock to me. 

Which is likely the reason that lenders generally require profit and loss statements in addition to Tax Returns.I'd be pleased to learn more (like your citation of the expense reporting requirements to claim the EIC), but as it stands your position that it is generally wrong to purposely leave expenses off a federal tax return so that the filer seems more profitable to a bank is not established by the IRS code. 

Love the citations

@Mandee H.I don't remember the citation, but I'm fairly sure there is Pennslyvania caselaw stating that an email constitutes "written, signed" writing.

Are there any open permits or citations for the property?

She stopped answering my messages or my calls and not only that but she’s keeping the house in awful conditions and I’m getting many citations for improper trash storage. 

Could you please provide a citation of that so I can show it to my CPA?

If it was the AOAO, you may want to check with them if there are any fines or citations.