Form 8823 - General Instructions
ADVERTISEMENT
12
Form 8823 (Rev. 2-2004)
Page
for occupany. In accordance with the
failure of low-income housing credit
General Instructions
requirements of Regulations section
properties to comply with the requirements of
Section references are to the Internal
1.42-5(e)(3), report to the IRS all inspection
the Fair Housing Act will result in the denial of
Revenue Code unless otherwise noted.
deficiencies whether or not the
the low-income housing tax credit on a
noncompliance or failure to certify is
per-unit basis.
Purpose of Form
corrected. Examples of major violations
Individuals with questions about the
include: HVAC does not function; pest
Housing credit agencies use Form 8823 to
accessibility requirements can obtain the Fair
infestation; missing/non-functional smoke
fulfill their responsibility under section
Housing Act Design Manual from HUD by
detectors, including missing batteries;
42(m)(1)(B)(iii) to notify the IRS of
calling 1-800-245-2691 and request item
blockages of fire exits or missing/not visible
noncompliance with the low-income housing
number HUD 11112.
exit signs; entry or fire doors that are not
tax credit provisions or any building
Item 10i. The owner must rent to low-income
functioning or cannot be locked because of
disposition.
tenants all comparable units that are available
damage; non-operable elevators; electrical
or that subsequently become available in the
hazards; excessive garbage and debris;
Who Must File
same building in order to continue treating
improperly stored flammable materials; air
the over-income unit(s) as a low-income unit.
Any authorized housing credit agency that
quality issues such as propane/natural
All units affected by a violation of the
becomes aware that a low-income housing
gas/sewer gas detected and mold or mildew;
available unit rule may not be included in
building was disposed of or is not in
and lavatory or kitchen sinks that are either
qualified basis. When the percentage of
compliance with the provisions of section 42
missing or not functioning.
low-income units in a building again equals
must file Form 8823.
Item 10c. This category is used to report
the percentage of low-income units on which
minor violations under the UPCS or local
When To File
the credit is based, the full availability of the
inspection standards. Examples of minor
credit is restored. Thus, only check the
File Form 8823 no later than 45 days after
violations include: HVAC system shows signs
“Noncompliance corrected” box when the
(a) the building was disposed of or (b) the
of abnormal vibrations, other noise, or leaks
percentage of low-income units in the
end of the time allowed the building owner to
when engaged but the system still provides
building equals the percentage on which the
correct the condition(s) that caused
enough heating or cooling to maintain a
credit is based.
noncompliance. For details, see Regulations
minimum temperature range in the living
Item 10q. Check this box for noncompliance
section 1.42-5(e).
areas; a window is not functioning but can be
events other than those listed in 10a through
secured; or a screen door or storm door is
10p. Attach an explanation. For example,
Where To File
damaged or is missing screens or glass.
report any decrease in qualified basis of a
Item 10d. Report the failure to provide annual
File Form 8823 with the Internal Revenue
building. For projects with allocations from
certifications or provided certifications that
Service Center, Philadelphia, PA 19255.
the nonprofit set-aside under section 42(h)(5),
are known to be incomplete or inaccurate as
report the lack of material participation by a
Specific Instructions
required by Regulations section 1.42-5(c). As
non-profit organization (i.e., regular,
examples, report a failure by the owner to
continuous, and substantial involvement) that
Items 2, 4, 12b, and 12d. If there is more
include a statement summarizing violations
the housing credit agency learns of during the
than one owner (other than as a member of a
(or copies of the violation reports) of local
compliance period.
pass-through entity), attach a schedule listing
health, safety, or building codes; report an
owner who provided inaccurate or incomplete
the owners, their addresses, and their
Paperwork Reduction Act Notice. We ask
statements concerning corrections of these
taxpayer identification numbers. Indicate
for the information on this form to carry out
violations.
whether each owner’s taxpayer identification
the Internal Revenue laws of the United
number is an employer identification number
Item 10e. Report any federal grant made with
States. You are required to give us the
(EIN) or a social security number (SSN).
respect to any building or the operation
information. We need it to ensure that you are
Both the EIN and the SSN have nine digits.
thereof during any taxable year in the
complying with these laws and to allow us to
An EIN has two digits, a hyphen, and seven
compliance period. Report changes in
figure and collect the right amount of tax.
digits. An SSN has three digits, a hyphen,
common areas which become commercial,
You are not required to provide the
two digits, a hyphen, and four digits and is
when fees are charged for facilities, etc. In
information requested on a form that is
issued only to individuals.
addition, report any below market Federal
subject to the Paperwork Reduction Act
loan or any obligation the interest on which is
Item 3. Enter the building identification
unless the form displays a valid OMB control
exempt from tax under section 103 that is or
number (BIN) assigned to the building by the
number. Books or records relating to a form
was used (directly or indirectly) with respect
housing credit agency as shown on Form
or its instructions must be retained as long as
to the building or its operation during the
8609.
their contents may become material in the
compliance period and that was not taken
Item 6d. “Reviewed by agency” includes
administration of any Internal Revenue law.
into account when determining eligible basis
physical inspection of the property, tenant file
Generally, tax returns and return information
at the close of the first year of the credit
inspection, or review of documentation
are confidential, as required by section 6103.
period.
submitted by the owner.
The time needed to complete and file this
Item 10f. Failure to satisfy the minimum
Item 7. Enter the date that the building
form will vary depending on individual
set-aside requirement in the first year of the
ceased to comply with the low-income
circumstances. The estimated average time
credit period results in the permanent loss of
housing credit provisions. If there are multiple
is:
the entire credit.
noncompliance issues, enter the date for the
Recordkeeping
7 hr., 39 min.
Failure to maintain the minimum set-aside
earliest discovered issue. Do not complete
requirement in any year after the first year of
Learning about the law
item 7 for a building disposition. Instead, skip
the credit period results in recapture of
or the form
30 min.
items 8 through 11, and complete item 12.
previously claimed credit and no future credit
Preparing and sending
Item 8. Enter the date that the
can be claimed. However, an owner who later
the form to the IRS
39 min.
noncompliance issue was corrected. If there
meets the minimum set-aside requirement
are multiple issues, enter the date the last
If you have comments concerning the
may resume claiming credit.
correction was made.
accuracy of these time estimates or
Item 10h. Low-income housing credit
suggestions for making this form simpler, we
Item 9. Do not check this box unless the sole
properties are subject to Title VIII of the Civil
would be happy to hear from you. You can
reason for filing the form is to indicate that
Rights Act of 1968, also known as the Fair
write to the Tax Products Coordinating
previously reported noncompliance problems
Housing Act. It prohibits discrimination in the
Committee, Western Area Distribution Center,
have been corrected.
sale, rental, and financing of dwellings based
Rancho Cordova, CA 95743- 0001. Do not
on race, color, religion, sex, national origin,
Item 10b. State housing credit agencies can
send Form 8823 to this address. Instead, see
familial status, and disability. See 42 U.S.C.
use either local health, safety and building
Where To File above.
sections 3601 through 3619.
codes or the standards contained in the
Uniform Physical Conditions Standards
It also mandates specific design and
(UPCS)(24 CFR section 5.703) to inspect the
construction requirements for multifamily
property (i.e., site, building exterior, building
housing built for first occupancy after March
systems, common area, and dwelling units) to
13, 1991, in order to provide accessible
determine whether the property is suitable
housing for individuals with disabilities. The
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial