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Form 8823 (Rev. 6-2023) Page 3
General Instructions a common area, then the number of units identified on
line 7c should be -0-.
Section references are to the Internal Revenue Code
unless otherwise noted. Line 8. Enter the date that the building ceased to comply
with the low-income housing credit provisions. If there are
Future developments. For the latest information about multiple noncompliance issues, enter the date for the
developments related to Form 8823 and its instructions, earliest discovered issue. Do not complete line 8 for a
such as legislation enacted after they were published, go building disposition. Instead, skip lines 9 through 12, and
to www.irs.gov/Form8823. complete line 13.
Purpose of Form Line 9. Enter the date that the noncompliance issue was
Housing credit agencies use Form 8823 as part of their corrected. If there are multiple issues, enter the date the
compliance monitoring responsibilities under section last correction was made.
42(m)(1)(B)(iii) to notify the IRS of any building disposition Line 10. Do not check this box unless the sole reason for
or noncompliance with the low-income housing tax credit filing the form is to indicate that previously reported
provisions. noncompliance problems have been corrected.
The housing credit agency should also give a copy of Lines 11a through 11p. Check only the “Out of
Form 8823 to the owner(s). compliance” box if the issue causing the noncompliance
Who Must File remains uncorrected at the end of the correction period.
Check both the “Out of compliance” and “Noncompliance
Any authorized housing credit agency that becomes corrected” boxes if the noncompliance was corrected
aware that a low-income housing building was disposed within the correction period. Check only the
of or is not in compliance with the provisions of section 42 “Noncompliance corrected” box if the noncompliance was
must file Form 8823. previously reported to the IRS on a separate Form 8823.
When To File Line 11c. Housing credit agencies must use either (a) the
File Form 8823 no later than 45 days after (a) the building local health, safety, and building codes (or other
was disposed of, or (b) the end of the time allowed the habitability standards); or (b) the Uniform Physical
building owner to correct the condition(s) that caused Condition Standards (UPCS) (24 C.F.R. section 5.703) to
noncompliance. For details, see Regulations section inspect the project, but not in combination. The UPCS
1.42-5(e). does not supersede or preempt local codes. Thus, if a
housing credit agency using the UPCS becomes aware of
Where To File any violation of local codes, the agency must report the
File Form 8823 with the: violation. Attach a statement describing either (a) the
Department of the Treasury deficiency and its severity under the UPCS (that is, minor
Internal Revenue Service Center (level 1), major (level 2), and severe (level 3)); or (b) the
Philadelphia, PA 19255-0549 health, safety, or building violation under the local codes.
The Department of Housing and Urban Development’s
Specific Instructions Real Estate Assessment Center has developed a
comprehensive description of the types and severities of
Amended return. If you are filing an amended return to
deficiencies entitled “Revised Dictionary of Deficiency
correct previously reported information, check the box at
Definitions” found at www.hud.gov. Under Regulations
the top of page 1.
section 1.42-5(e)(3), report all deficiencies to the IRS
Line 2. Enter the building identification number (BIN) whether or not the noncompliance or failure to certify is
assigned to the building by the housing credit agency as corrected at the time of inspection. Physical damage to
shown on Form 8609. low-income housing credit projects caused by casualty
Lines 3, 4, 13c, and 13d. If there is more than one owner events and that render residential rental units or buildings,
(other than as a member of a pass-through entity), attach a or common areas associated with the property,
schedule listing the owners, their addresses, and their unsuitable for occupancy is reported as noncompliance
taxpayer identification numbers. Indicate whether each with the UPCS or local standards. While no credit is
owner’s taxpayer identification number is an employer allowable during the time the property is being restored
identification number (EIN) or a social security number (SSN). by reconstruction or replacement, section 42(j)(4)(E)
Both the EIN and the SSN have nine digits. An EIN has provides relief from the credit recapture provisions; that
two digits, a hyphen, and seven digits. An SSN has three is, the recapture provisions are not applied when there is
digits, a hyphen, two digits, a hyphen, and four digits, and a reduction in qualified basis by reason of a casualty loss
is issued only to individuals. to the extent such loss is restored by reconstruction or
replacement within a reasonable period.
Line 7d. “Reviewed by agency” includes physical
inspection of the property, tenant file inspection, or Line 11d. Report the failure to provide annual
review of documentation submitted by the owner. certifications or the provision of certifications that are
Regulations section 1.42-5(c)(2)(iii)(B) provides that a known to be incomplete or inaccurate as required by
housing credit agency must conduct on-site inspections Regulations section 1.42-5(c). As examples, report a
and low-income certification review of not fewer than the failure by the owner to include a statement summarizing
minimum number of low-income units set forth in the violations (or copies of the violation reports) of local
table found in Regulations section 1.42-5(c)(2)(iii). health, safety, or building codes; report an owner who
provided inaccurate or incomplete statements concerning
Note: If the only noncompliance issue identified by the corrections of these violations.
physical inspection of the property on line 11c relates to
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