Oversight of the Low-Income Housing Tax Credit Program Can Be improved

The Commissioner, Small Business/Self-Employed Division, should ensure that additional system validity checks are implemented to improve the accuracy and reliability of the information in Housing Credit Agency (HCA) and building owner portions of the Low-Income Housing Tax Credit (LIHTC) database.

the Commissioner, Small Business/Self-Employed Division, should establish an effective quality review system for the processing of Low-Income Housing Tax Credit (LIHTC) forms received from the Housing Credit Agencies (HCAs) and building owners to identify areas requiring corrective action, employee training, or outreach.

The Commissioner, Small Business/Self-Employed Division, should establish an examination selection process for business owners submitting questionable Forms 8609-A that do not correspond to Forms 8609.

The Commissioner, Small Business/Self-Employed Division, should evaluate possible revisions to Form 3800, Form 8586, and Form 8609-A to remove the option to make a current-year LIHTC claim for a pre-2008 building.

The Commissioner, Small Business/Self-Employed Division, should determine the feasibility of establishing an examination selection process for taxpayers submitting questionable Low-Income Housing Tax Credit (LIHTC) claims on Forms 3800 that do not correspond to supporting Forms 8609-A or pass-through Schedules K-1.