IRS Issues Updated Form 8609, Including ‘Income Average’ Option

The Internal Revenue Service (IRS) published a newly revised Form 8609, providing the option to choose “average income” as a minimum set-aside election for low-income housing tax credit (LIHTC) properties. As of Thursday, the instructions for the form had not been updated. Neither has the IRS released a revision to IRS Form 8823, which is used to notify the IRS of noncompliance with LIHTC provisions or any building disposition.

A Notes from Novogradac blog post explains the income averaging option and a Novogradac webinar on income averaging is available online.