Practice Test GeeksTCS - Tax Credit Specialist Practice Test
← All TCS Flashcard Decks

Annual Owner Certification and IRS Reporting Flashcards

7 cards from real TCS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Annual Owner Certification and IRS Reporting flashcards as text

  1. What IRS form is issued by the state housing credit agency to certify the Low-Income Housing Tax Credit allocation for a building?

    Answer: Form 8609

    Form 8609, the Low-Income Housing Credit Allocation and Certification, is issued by the state allocating agency to certify the credit amount for each qualified building.

  2. Which part of IRS Form 8609 is completed and signed by the state housing credit agency?

    Answer: Part I

    Part I of Form 8609 is completed and signed by the state allocating agency to certify the credit allocation amount and building information.

  3. What IRS form must a LIHTC building owner file annually with their tax return throughout the credit period to document ongoing compliance?

    Answer: Form 8609-A

    Form 8609-A, the Annual Statement for Low-Income Housing Credit, must be filed annually with the owner's tax return throughout the 15-year compliance period.

  4. Which entity is responsible for filing IRS Form 8823 when LIHTC noncompliance is identified?

    Answer: The state housing credit agency

    State housing credit agencies are required to file Form 8823 with the IRS whenever noncompliance is identified or when a building disposition occurs.

  5. IRS Form 8823 is titled the Low-Income Housing Credit Agencies Report of Noncompliance or what other triggering event?

    Answer: Building Disposition

    Form 8823 is used to report either noncompliance events or building dispositions (such as ownership transfers) to the IRS.

  6. What is the length of the initial compliance period for Low-Income Housing Tax Credit properties under Section 42?

    Answer: 15 years

    The LIHTC compliance period is 15 years, during which the owner must maintain income and rent restrictions or risk credit recapture.

  7. Including the extended use period, for how many total years from the placed-in-service date must most LIHTC properties maintain affordability restrictions?

    Answer: 30 years

    Most LIHTC properties must maintain affordability for 30 years: the initial 15-year compliance period plus an additional 15-year extended use period.