IRS INVITES COMMENTS ON LIHTC COMPLIANCE REGULATIONS

Thursday, May 10, 2007 - 7:30AM

The Internal Revenue Service (IRS) today invited comments concerning existing final regulations, Treasury Decision (T.D.) 8430, T.D. 8521 and TD 8859. T.D. 8430 requires state low-income housing tax credit (LIHTC) allocation plans to provide a procedure for state and local LIHTC agencies to monitor for compliance with the requirements of Internal Revenue Code (IRC) Section 42 and report any noncompliance to the IRS. T.D. 8521 concerns the Secretary of the Treasury's authority to provide guidance under IRC Section 42 and allows state and local LIHTC agencies to correct administrative errors and omissions made in connection with allocations of LIHTC dollar amounts and recordkeeping within a reasonable period after their discovery. T.D. 8859 amends the procedures for state and local LIHTC agencies' compliance monitoring and the rules for state and local LIHTC agencies' correction of administrative errors or omissions. There is no change to these existing regulations at this time; the comments are invited part of the Treasury Department’s continuing effort to reduce paperwork and respondent burden required by the Paperwork Reduction Act of 1995. Comments should be received on or before July 9, 2007 to be assured of consideration.

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