The long-awaited updated version of the IRS’s Guide for Completing Form 8823 has been released. The Guide was first released in 2007 to provide guidelines for preparing Form 8823, the Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition. It was revised in 2009 and 2011, and last year, senior officials at the IRS announced that an updated Guide had been drafted and submitted for review.
While the Guide is not a legal authority, many in the Low-Income Housing Tax Credit (LIHTC) industry look to its contents for guidelines and examples when evaluating the compliance status of LIHTC units, buildings, and projects. The IRS reminds us that the Guide is current through its revision date, and any updates to the underlying authority may not be reflected in its contents. Housing professionals are strongly encouraged to consult the state housing finance agency responsible for compliance monitoring for up-to-date and agency-specific guidance.