Instructions For Form 8609 - 2016 (Page 5 of 5) in pdf

and occupied by individuals whose income is 60% or less of

identifying number (SSN, EIN, or ITIN). We need this

the area median gross income (see section 142(d)(6)).

information to ensure that you are complying with the

revenue laws and to allow us to figure and collect the right

Once made, the election is irrevocable.

amount of tax. We may disclose this information to the

Rural projects. For purposes of the 20-50, 40-60, and

Department of Justice for civil or criminal litigation, and to

25-60 tests, “national non-metropolitan median income” will

cities, states, the District of Columbia, and U.S.

be used for determining income if it exceeds “area median

commonwealths and possessions for use in administering

gross income,” but only for determinations of income made

their tax laws. We may also disclose this information to other

after July 30, 2008, and buildings with an allocation of credit.

countries under a tax treaty, to federal and state agencies to

See section 42(i)(8) for details.

enforce federal nontax criminal laws, or to federal law

The minimum set-aside requirement is a

enforcement and intelligence agencies to combat terrorism.

project-based test and must be met by the close of

Failure to provide this information may delay or prevent

the first year of the credit period in order to claim any

processing your claim. Providing false information may

CAUTION

credit for the first year or for any subsequent years.

subject you to penalties.

You are not required to provide the information requested

Line 10d. The deep rent skewed 15-40 election is not an

on a form that is subject to the Paperwork Reduction Act

additional test for satisfying the minimum set-aside

unless the form displays a valid OMB control number. Books

requirements of section 42(g)(1). The 15-40 test is an

or records relating to a form or its instructions must be

election that relates to the determination of a low-income

retained as long as their contents may become material in

tenant's income. Generally, a continuing resident's income

the administration of any Internal Revenue law.

may increase up to 140% of the applicable income limit (50%

or less or 60% or less of the area median gross income (or,

The time needed to complete and file the form will vary

when applicable, national non-metropolitan median income)

depending on individual circumstances. The estimated

under the minimum set-aside rules described earlier in

average time is:

Line 10c). When the deep rent skewed election is made, the

income of a continuing resident may increase up to 170% of

Learning about the law or the form

4 hr., 10 min.

. . . . . . . .

the applicable income limit. If this election is made, at least

Recordkeeping

10 hr., 45 min.

. . . . . . . . . . . . . . . . . . . .

15% of all low-income units in the project must be occupied

Preparing and sending the form to the IRS

4 hr., 31 min.

. . .

at all times during the compliance period by tenants whose

income is 40% or less of the area median gross income (or,

when applicable, national non-metropolitan median income).

If you have comments concerning the accuracy of these

A deep rent skewed project itself must meet the requirements

time estimates or suggestions for making these forms

of section 142(d)(4)(B). Once made, the election is

simpler, we would be happy to hear from you. You can send

irrevocable.

your comments from Click on “More

Information” and then on “Give us feedback.” Or you can

Privacy Act and Paperwork Reduction Act Notice. We

send your comments to the Internal Revenue Service, Tax

ask for the information on this form to carry out the Internal

Forms and Publications, 1111 Constitution Ave. NW,

Revenue laws of the United States. Claiming this credit is

IR-6526, Washington, DC, 20224. Do not send the tax form

voluntary; however, if you do claim the credit, sections 42,

to this office. Instead, see Filing Requirement, earlier.

6001, and 6011 require you to provide this information.

Section 6109 requires you to provide your taxpayer

-5-

Instructions for Form 8609 (1-2016)

Instructions For Form 8609 - 2016 Page 5

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