TCS Annual Owner Certification and IRS Reporting

Question 1

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

Accepted Answer

Form 8609

Answer

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.

Question 2

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

Accepted Answer

Part I

Answer

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

Question 3

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

Accepted Answer

Form 8609-A

Answer

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.

Question 4

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

Accepted Answer

The state housing credit agency

Answer

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

Question 5

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

Accepted Answer

Building Disposition

Answer

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

TCS - Tax Credit Specialist Practice Test

TCS - Tax Credit Specialist Practice Test

TCS Annual Owner Certification and IRS Reporting