Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has provided procedures for taxpayers on how to make the election to no longer maintain a surety bond or Treasury Direct Account (TDA) to avoid recapture of the low-income housing credit. The guidance is aimed at taxpayers who are maintaining a surety bond or TDA to satisfy the low-income housing tax credit recapture exception in Code Sec. 42(j)(6), as in effect on or before July 30, 2008. The procedures apply to all taxpayers that disposed of a qualified low-income building on or before July 30, 2008, for which the IRS has approved a Form 8693, Low-Income Housing Credit Disposition Bond. The election is allowed by section 3004(i)(2)((ii) of the Housing Tax Act of 2008 (P.L. 110-289).

  A taxpayer who seeks to make the election must submit a letter to the IRS containing the following information: (1) the taxpayer's name, address, and taxpayer identification number; (2) a statement affirming that the taxpayer reasonably expects that the building will continue to be operated as a qualified low-income building for the remainder of the building's compliance period; and (3) an "under penalties of perjury" declaration. The taxpayer must attach the signature page of an IRS-approved Form 8693 to the letter and mail to: Internal Revenue Service, Box 331, Attn: LIHC Unit, DP 607 South, Philadelphia Campus, Bensalem, Pa. 19020.

Rev. Proc. 2008-60, 2008FED ¶46,600

Other References:

 
Code Sec. 42

  CCH Reference - 2008FED ¶4385.72

  Tax Research Consultant

  CCH Reference - TRC BUSEXP: 54,222