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Form 8693 Low-Income Housing Credit Disposition Bond OMB No. 1545–1029
(Rev. February 1997) (For use by taxpayers posting bond under section 42(j)(6))
Department of the Treasury Attachment
Internal Revenue Service Attach to your return after receiving IRS approval. Sequence No. 91
Name of taxpayer making disposition Identifying number

Part I Bonding
1 Address of building as shown on Form 8609 (do not use P.O. box) 2 Building identification number

3 Date the 15-year compliance period ends

4 Check the box that applies: 5 Date property 6 Date bond issued
interest disposed of
This is an original bond, strengthening bond, or superseding bond.

7a Bond is given by ()
Principal Telephone number (optional)

Address
as principal and
Surety
as surety or sureties.
Address
7b As principal and surety, we are obligated to the United States in the amount of $ . We also
jointly and severally obligate our heirs, executors, administrators, successors, and assigns for the payment of this amount.
Part II Signatures
Under penalties of perjury, I declare that I have examined this form and any accompanying statements, and to the best of my knowledge and belief,
they are true, correct, and complete.

Signature of principal Name (please print) Date

Signature of surety Name and identifying number (please print) Date

Signature of surety Name and identifying number (please print) Date
Part III Certificate of Corporate Principal (corporations only)
I certify that the person above, who signed on behalf of the principal, was an authorized representative of the corporation.

Signature of secretary of the corporation Name (please print) Date
Part IV Approval by IRS (See instructions.)

Bond approved
Date Internal Revenue Service official

General Instructions number. Books or records relating to a form If you have comments concerning the
or its instructions must be retained as long as accuracy of these time estimates or
Section references are to the Internal their contents may become material in the suggestions for making this form simpler, we
Revenue Code. administration of any Internal Revenue law. would be happy to hear from you. You can
Paperwork Reduction Act Generally, tax returns and return information write to the Tax Forms Committee, Western
are confidential, as required by section 6103. Area Distribution Center, Rancho Cordova,
Notice The time needed to complete and file this CA 95743-0001. DO NOT send Form 8693 to
We ask for the information on this form to form will vary depending on individual this address. Instead, see When and Where
carry out the Internal Revenue laws of the circumstances. The estimated average time To File on page 2.
United States. You are required to give us the is: Purpose of Form
information. We need it to ensure that you are Recordkeeping 13 min. Use Form 8693 to post a bond under section
complying with these laws and to allow us to Learning about the 42(j)(6) to avoid recapture of the low-income
figure and collect the right amount of tax. law or the form 14 min. housing credit.
You are not required to provide the Preparing, copying,
information requested on a form that is assembling, and sending
subject to the Paperwork Reduction Act the form to the IRS 40 min.
unless the form displays a valid OMB control

Cat. No. 10298Y Form 8693 (Rev. 2-97)

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Form 8693 (Rev. 2-97) Page 2
The bond ensures payment of the Period of Bond When and Where To File
recapture tax imposed under section 42(j). The liability stated on the bond must be for Submit the original and one copy of Form
The conditions of the bond are that the the period of years remaining in the 15-year 8693 to the Internal Revenue Service Center,
principal (i.e., taxpayer): compliance period of the building plus an Philadelphia, PA 19255, within 60 days after
● Does not attempt to defraud the United additional 58 months. The compliance period the date of disposition of the building or
States of any tax under section 42(j); begins with the tax year the building was interest therein. The completed form may be
● Files all returns and statements as required placed in service or the succeeding tax year if submitted by either the taxpayer or the
by law or regulations; the election under section 42(f)(1) is made. surety.
● Pays all taxes including any penalties and When the IRS returns a copy of the
interest charges; and Recordkeeping approved form, attach a copy of it to your
● Complies with all other requirements of the Keep a copy of this Form 8693 together with income tax return for the year in which the
law and regulations under section 42. all Forms 8586, 8609, Schedule(s) A (Form disposition occurred. Write “FORM 8693
8609), and 8611 for 58 months after the ATTACHED” to the left of the entry space on
15-year compliance period ends. your income tax return for reporting the
Qualifying Sureties recapture of the low-income housing credit.
The company acting as surety must hold a Who Must File
Certificate of Authority from the Department Specific Instructions
of the Treasury, Financial Management Taxpayers who claimed a low-income
Service. These companies are listed in housing credit on a residential rental building Line 2. Building Identification Number
Treasury Circular 570. You may get a copy of and later (in a tax year during the 15-year (BIN).—This is the number assigned to the
this circular by writing to the Department of compliance period) disposed of the building building by the housing credit agency on Part
the Treasury, Financial Management Service, or an ownership interest in it must file this I, item E, of Form 8609, Low-Income Housing
Surety Bond Branch, 3700 East West Hwy., form to avoid recapture of the credit claimed. Credit Allocation Certification.
Hyattsville, MD 20782, or by calling (202) A de minimis rule may apply to certain Line 7b. Amount of Bond.—Use the
874-6850 (not a toll-free number). dispositions of interests in partnerships that worksheet below to calculate the bond
A taxpayer may not be a surety for itself, own buildings in which a credit was claimed. amount. See Rev. Rul. 90-60 for additional
nor may a member of a firm or a partner in a See Rev. Rul. 90-60, 1990-2 C.B. 3, for information on the methodology for
partnership be a surety for the firm or additional information. determining the bond amount.
partnership of which he or she is a member If the amount is not an even multiple of
or a partner. Partnerships $100, increase the bond amount to the next
Section 42(j)(5) partnerships.—Any person higher multiple of $100.
Surety Termination holding a power of attorney in a section Part III. Certificate of Corporate
If a surety’s certificate of authority is 42(j)(5) partnership (a partnership with 35 or Principal.—If the principal is a corporation,
terminated, the surety may be relieved of more partners that has not elected out of the the authority of the person posting the bond
liability under the bond provided it notifies the section 42(j)(5) provisions) may post bond as must be certified by the secretary of the
principal and the IRS by the date the principal on behalf of the partnership. A bond corporation by completing Part III. Or the
termination announcement is published in the posted on behalf of a partnership must be corporation may attach copies of records that
Federal Register. The notice must be sent by posted in the partnership’s name, with the will show the authority of the officer signing if
certified mail and must state that the principal name of the authorized representative of the the copies are certified by the secretary to be
has 60 days from the date the termination partnership posting the bond appearing true copies.
announcement is published in the Federal immediately below the partnership’s name. Part IV. Approval by the IRS.—The IRS will
Register to get an adequate strengthening or Partnerships that elected out of the section notify you of the approval or rejection of the
superseding bond with another surety listed 42(j)(5) provisions or have fewer than 35 bond. If approved, the IRS will send a copy of
in Treasury Circular 570. If notice is given, the partners.—If partners in partnerships to which the approved Form 8693 to the principal
principal’s rights under the bond will end 60 section 42(j)(5) does not apply want to post shown in Part I. If rejected, the owner must
days after the date the termination bond, the partners must post bond in their recapture the allowed low-income housing
announcement is published in the Federal individual capacity as principals. credit. Use Form 8611, Recapture of
Register. Low-Income Housing Credit.
A qualified surety (or coinsuring surety)
may terminate its liability on a bond only if
the surety notifies the principal and the IRS at Worksheet for Computing Bond Amount
least 60 days before the date the surety
wants to terminate its liability. The notice 1 Total credits taken by you in previous years and any additional credits
must state that the principal has 60 days you anticipate claiming for any year or portion thereof preceding the
from the termination date to obtain an date of disposition $
adequate superseding or strengthening bond
from another qualified surety (or coinsuring 2 Bond factor amount %
surety). 3 Percentage of taxpayer’s total interest in the qualified low-income
If the surety does not provide this notice, it building disposed of %
remains liable for the amount posted on the
bond. If the surety gives notice but does not 4 Bond amount required to be posted (line 1 3 line 2 3 line 3). Enter
meet the 60-day notification requirement or here and on line 7b $
fails to include a termination date in the
notice, the surety’s liability will terminate 60 Instructions for Worksheet Line 2. Bond Factor Amount.—Enter the
days after the postmark date on the notice. Line 1.—Enter the total amount of the credits bond factor amount corresponding to the
Send the IRS copy of the notice to the claimed on the building. See Part I of Forms month in the compliance period in which the
Internal Revenue Service Center, Philadelphia, 8586 you have filed. Include any additional disposition occurred and the first year of the
PA 19255. credits you anticipate claiming for any period building’s credit period. The IRS announces
If the principal fails to post a strengthening preceding the date of disposition. Do not the monthly bond factor amounts quarterly in
or superseding bond within 60 days from the include credit amounts previously recaptured, a revenue ruling published in the Internal
date (a) the termination announcement is credit amounts for which a bond was Revenue Bulletin.
previously posted, or credits claimed on Line 3.—Enter the ownership interest in the
published in the Federal Register or (b) on additions to qualified basis as determined qualified low-income building that you have
which a surety’s liability on a bond under section 42(f)(3). disposed of. Include ownership interests held
terminates, recapture under section 42(j) is both directly and indirectly (e.g., through a
required. partnership).

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