Everything You Need to Know About Form 8823

What is Form 8823?

Form 8823, officially titled “Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition,” is used by state or local housing credit agencies to notify the IRS when a LIHTC property fails compliance requirements or undergoes a significant ownership or status change.

It ensures accurate reporting of noncompliance to maintain program integrity.

Who Should File Form 8823?

• Only state or local housing credit agencies monitoring LIHTC properties file this form.
• Property owners do not submit this form directly but must cooperate with agencies to resolve noncompliance issues.

Key Information Required

When completing Form 8823, agencies must include:

• Building name, address, and Building Identification Number (BIN)
• Owner’s name, contact information, and tax ID (EIN or SSN)
• Number of total, low-income, and noncompliant units
• Dates of noncompliance and correction (if resolved)
• Description of violations (e.g., rent overcharges, failed inspections, unqualified tenants)
• Disposition information if the building was sold, foreclosed, or destroyed

Why It Matters

Form 8823 is critical for maintaining compliance within the LIHTC program. Filing ensures:

• IRS can evaluate whether tax credits remain valid
• Noncompliance issues are tracked and corrected
• Potential credit recapture or disqualification is identified if violations persist
• Transparency and accountability in awarding housing tax credits