TCS Annual Owner Certification and IRS Reporting 2

Question 1

What is the minimum correction period that state housing agencies must provide to LIHTC owners after discovering noncompliance?

Accepted Answer

60 days

Answer

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.

Question 2

State housing agencies may extend the noncompliance correction period for a maximum total of how long?

Accepted Answer

6 months

Answer

While the minimum correction period is 60 days, state agencies have discretion to extend the total correction period up to 6 months.

Question 3

After a correction period expires without the noncompliance being corrected, within how many days must the state agency file Form 8823 with the IRS?

Accepted Answer

45 days

Answer

Once the correction period ends without the noncompliance being corrected, the state agency must file Form 8823 with the IRS within 45 days.

Question 4

Annual owner certifications for LIHTC properties verify compliance for which time period?

Accepted Answer

The preceding calendar year

Answer

Annual owner certifications are required to verify that the property remained in compliance throughout the preceding calendar year.

Question 5

Which of the following would NOT typically be required as part of an annual LIHTC owner certification?

Accepted Answer

Disclosure of individual tenant Social Security numbers

Answer

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.

TCS - Tax Credit Specialist Practice Test

TCS - Tax Credit Specialist Practice Test

TCS Annual Owner Certification and IRS Reporting 2