IRS audit guides: Low-income housing credit

IRS audit guides: Low-income housing credit

The IRS has made available the low-income housing credit (LIHTC) audit techniques guides, provided to assist IRS examiners in identifying tax issues relating to low-income housing projects (generally held through partnerships).


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The LIHTC audit guides are nine separate documents that cover “high level” issues that arise at the project level, including:

  • The project’s eligible basis
  • Computation of the allowable credit
  • Applicable fraction
  • The project’s qualified basis, qualified percentage, and computation of the credit recapture amount

The guides also cover rules for auditing taxpayers who are partners in partnerships owning low-income housing projects.

Read the LIHTC audit guides on the IRS website (search terms: “IRC42 low income housing credit ATG” and “04-Aug-2015”)


For more information, contact a tax professional with KPMG’s Washington National Tax:

Susan Reaman | +1 (202)-533-3541 |

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