Annual Owner Certification and IRS Reporting Flashcards
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Read the first 7 Annual Owner Certification and IRS Reporting flashcards as text
What is the minimum correction period that state housing agencies must provide to LIHTC owners after discovering noncompliance?
Answer: 60 days
IRS regulations under Treas. Reg. 1.42-5 require state agencies to provide building owners at least a 60-day correction period after discovering noncompliance.
State housing agencies may extend the noncompliance correction period for a maximum total of how long?
Answer: 6 months
While the minimum correction period is 60 days, state agencies have discretion to extend the total correction period up to 6 months.
After a correction period expires without the noncompliance being corrected, within how many days must the state agency file Form 8823 with the IRS?
Answer: 45 days
Once the correction period ends without the noncompliance being corrected, the state agency must file Form 8823 with the IRS within 45 days.
Annual owner certifications for LIHTC properties verify compliance for which time period?
Answer: The preceding calendar year
Annual owner certifications are required to verify that the property remained in compliance throughout the preceding calendar year.
Which of the following would NOT typically be required as part of an annual LIHTC owner certification?
Answer: Disclosure of individual tenant Social Security numbers
Annual owner certifications confirm income and rent compliance and report noncompliance events, but do not require disclosure of individual tenant Social Security numbers to the state agency.
Under Treasury Regulation 1.42-5, which party bears primary responsibility for compliance monitoring of LIHTC properties?
Answer: The state housing credit agency
Treasury Regulation 1.42-5 places the responsibility for compliance monitoring, including annual certifications and inspections, on the state housing credit agency.
What action must a property owner take upon discovering a noncompliance event before the state agency identifies it during monitoring?
Answer: Self-report it to the state housing credit agency
Property owners who discover noncompliance are required to self-report the issue to their state housing credit agency, which then manages the correction period and IRS reporting process.