UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-K


(Mark One)

[X]  ANNUAL REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE  SECURITIES  EXCHANGE
     ACT OF 1934

For the fiscal year ended March 31, 2007

                                       OR

[ ]  TRANSITION  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
     EXCHANGE ACT OF 1934


                         COMMISSION FILE NUMBER 0-17015

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


                    Delaware                                      13-3809869
------------------------------------------------             -------------------
(State or other jurisdiction of incorporation or               (I.R.S. Employer
                 organization)                               Identification No.)

     625 Madison Avenue, New York, New York                         10022
------------------------------------------------             -------------------
    (Address of principal executive offices)                      (Zip Code)


Registrant's telephone number, including area code (212) 317-5700

Securities registered pursuant to Section 12(b) of the Act:

     None

Securities registered pursuant to Section 12(g) of the Act:

     Limited Partnership Interests and Beneficial Assignment Certificates

     (Title of Class)

     Indicate by check mark if the registrant is a well-known  seasoned  issuer,
as defined in Rule 405 of the Securities Act. Yes [ ] No [X]

     Indicate by check mark if the  registrant  is not  required to file reports
pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [X]

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]

       Indicate by check mark if  disclosure of  delinquent  filers  pursuant to
Item 405 of Regulation S-K (ss.229.405 of this chapter) is not contained herein,
and will not be contained,  to the best of registrant's knowledge, in definitive
proxy or information  statements  incorporated  by reference in Part III of this
Form 10-K or any amendment to this Form 10-K. [X]

     Indicate by check mark whether the registrant is a large accelerated filer,
an accelerated filer, or a non-accelerated filer. See definition of "accelerated
filer and large  accelerated  filer" in Rule 12b-2 of the Exchange  Act.  (Check
one):

Large accelerated filer [ ]   Accelerated filer [ ]    Non-accelerated filer [X]

     Indicate  by check mark  whether  the  registrant  is a shell  company  (as
defined in Rule 12b-2 of the Act). Yes [ ] No [X]

     The  approximate  aggregate book value of the voting and non-voting  common
equity held by  non-affiliates  of the  Registrant  as of September 30, 2006 was
$15,056,000, based on Limited Partner equity as of such date.


                       DOCUMENTS INCORPORATED BY REFERENCE

     None

<PAGE>

                                     PART I


Item 1.  Business

General
-------

Independence  Tax  Credit  Plus  L.P.  IV  (the   "Partnership")  is  a  limited
partnership which was formed under the laws of the State of Delaware on February
22, 1995. The general partner of the Partnership is Related Independence L.L.C.,
a Delaware limited liability company (the "General Partner").

On November 17, 2003, Centerline Holding Company ("Centerline")  (formerly known
as CharterMac)  acquired  Centerline  Affordable  Housing Advisors LLC (formerly
known as CharterMac  Capital LLC), which is the parent of Centerline Manager LLC
(formerly know as RCC Manager LLC), the managing member of the General  Partner.
Pursuant to the acquisition,  Centerline acquired  controlling  interests in the
General  Partner.  This  acquisition  did  not  affect  the  Partnership  or its
day-to-day operations,  as the majority of the General Partner's management team
remained unchanged.

On March 15, 2007,  Centerline  announced  the  retirement  of Alan P. Hirmes as
Chief Financial Officer of Centerline. Upon his retirement, he also retired from
his  position  as Chief  Executive  Officer and Chief  Financial  Officer of the
General Partner.  Centerline has named Robert L. Levy as Chief Financial Officer
and Andrew J. Weil as Chief Executive Officer to replace Alan P. Hirmes.

On July 6, 1995, the Partnership commenced a public offering (the "Offering") of
Beneficial Assignment Certificates ("BACs") representing  assignments of limited
partnership  interests in the  Partnership  ("Limited  Partnership  Interests"),
managed by Related Equities  Corporation (the "Dealer  Manager"),  pursuant to a
prospectus dated July 6, 1995 (the "Prospectus").

The  Partnership  has received  $45,844,000 of aggregate  purchase price of BACs
excluding selling  commissions,  discounts or organization and offering expenses
("Gross  Proceeds") of the Offering from 2,759 investors ("BACs  holders").  The
solicitation  for the subscription of BACs was terminated as of May 22, 1996 and
the final closing occurred on August 15, 1996.

The Partnership's  business is primarily to invest in other partnerships ("Local
Partnerships",  "subsidiaries"  or "subsidiary  partnerships")  owning leveraged
apartment  complexes  ("Apartment  Complexes" or "Properties") that are eligible
for the low-income  housing tax credit ("Tax Credit")  enacted in the Tax Reform
Act of 1986, some of which may also be eligible for the historic  rehabilitation
tax credit.  As of March 31, 2007, the  Partnership  has acquired an interest in
fourteen  Local  Partnerships,   all  of  which  have  been  consolidated.   The
Partnership's  investments in Local Partnerships represent from 98.99% to 99.89%
interests except for one investment which is a 58.12% interest.  As of March 31,
2007,  the  Partnership  has  invested   approximately   $37,555,000  (including
approximately  $902,000  classified as a loan  repayable  from  sale/refinancing
proceeds  in  accordance  with  the  contribution  agreement  and not  including
acquisition  fees  of  approximately  $1,771,000)  of the  net  proceeds  of the
Offering  in  fourteen  Local  Partnerships  of which  approximately  $1,039,000
remains to be paid to the Local Partnerships  (including  approximately $500,000
being held in  escrow)  as certain  benchmarks,  such as  occupancy  level,  are
attained prior to the release of the funds.  The Partnership  does not intend to
acquire interests in additional Local  Partnerships,  but the Partnership may be
required  to fund  potential  purchase  price  adjustments  based on tax  credit
adjustor clauses. See Item 2, Properties, below.

The investment objectives of the Partnership are described below:

1.  Entitle  qualified  BACs  holders  to Tax  Credits  over the  period  of the
Partnership's entitlement to claim Tax Credits (for each Property, generally ten
years from the date of investment or, if later,  the date the Property is leased
to qualified tenants; referred to herein as the "Credit Period") with respect to
each Apartment Complex.

2. Preserve and protect the Partnership's capital.

3.  Participate in any capital  appreciation  in the value of the Properties and
provide  distributions  of Sale or Refinancing  Proceeds upon the disposition of
the Properties.

4. Allocate  passive losses to individual  BACs holders to offset passive income
that they may realize  from rental real  estate  investments  and other  passive
activities,  and allocate  passive  losses to  corporate  BACs holders to offset
business income.

One of the Partnership's  objectives is to entitle qualified BACs holders to Tax
Credits  over the Credit  Period.  Each of the Local  Partnerships  in which the
Partnership  has acquired an interest has been  allocated by the relevant  state
credit  agencies the authority to recognize Tax Credits during the Credit Period
provided  that the Local  Partnership  satisfies the rent  restriction,  minimum
set-aside and other requirements for recognition of the Tax Credits at all times
during such period.  Once a Local  Partnership  has become eligible to recognize
Tax Credits,  it may lose such eligibility and suffer an event of "recapture" if
its Property  fails to remain in  compliance  with the Tax Credit  requirements.
None of the Local Partnerships in which the Partnership has acquired an interest
has  suffered  an  event  of  recapture.  Due to  increased  market  demand  for
investments in properties  that were eligible to receive Tax Credits at the time
the  Partnership  was  investing  its  capital and  limitations  on the types of
investments  which may be obtained by the  Partnership  the  purchase  price for
interests  in  Local  Partnerships  which  are  qualified  for  purchase  by the
Partnership  have increased.  As a result of these changes,  management does not
believe that the Partnership has been able to invest the proceeds  available for
investment in a manner which will enable the  Partnership to achieve Tax Credits
in  originally  anticipated  range of $140-150  for each $1,000 BAC each year in
which the  Partnership  is receiving its full  entitlement  of Tax Credits.  The
anticipated tax credits for 2007,  2008 and 2009 are $4,562,159,  $2,986,779 and
$401,932, respectively.

There can be no  assurance  that the  Partnership  will  achieve its  investment
objectives as described above.

The  Partnership  is subject to the risks  incident to potential  losses arising
from the  management  and  ownership of improved  real estate and poor  economic
conditions.

                                       2
<PAGE>

The Tax Credits are attached to a subsidiary  partnership for the 10 year Credit
Period and are  transferable  with the Property  during the entirety of such ten
year  period.  If  trends  in the real  estate  market  warranted  the sale of a
Property,  the remaining Tax Credits  would  transfer to the new owner,  thereby
adding value to the property on the market.  However,  such value  declines each
year and is not included in the financial  statement carrying amount. The Credit
Periods are scheduled to expire at various times through  December 31, 2010 with
respect  to the  Local  Partnerships  depending  upon  when  the  Credit  Period
commenced.

A loss on  impairment of assets is recorded when  management  estimates  amounts
recoverable   through  future   operations  and  sale  of  the  Property  on  an
undiscounted  basis  are  below  depreciated  cost.  At that  time the  Property
investments  themselves are reduced to estimated fair value (generally using the
discounted cash flow valuation method).  Through March 31, 2007, the Partnership
has not recorded any loss on impairment of assets or reduction to estimated fair
value.

While the value of the  remaining Tax Credits are a factor in  calculating  fair
value,  the  expiration of the Tax Credit Period,  in and of itself,  is not the
only factor in determining whether there is an impairment and generally does not
have any adverse impact on the fair value of the Local Partnerships.

Segments
--------

The Partnership operates in one segment, which is the investment in multi-family
residential  property.  Financial information about this segment is set forth in
Item 8 hereto.

Competition
-----------

The real estate  business is highly  competitive  and  substantially  all of the
properties  acquired by the Partnership are expected to have active  competition
from similar  properties in their respective  vicinities.  In addition,  various
other limited  partnerships may, in the future, be formed by the General Partner
and/or its affiliates to engage in businesses  which may be competitive with the
Partnership.

Employees
---------

The Partnership does not have any direct  employees.  All services are performed
for the  Partnership  by the  General  Partner and its  affiliates.  The General
Partner  receives  compensation  in the connection  with such  activities as set
forth in Items 11 and 13. In addition,  the  Partnership  reimburses the General
Partner and certain of its affiliates for expenses  incurred in connection  with
the performance by their employees of services for the Partnership in accordance
with the  Partnership's  Amended and Restated  Agreement of Limited  Partnership
(the "Partnership Agreement").

Item 1A.  Risk Factors

The Partnership's  investment as a limited partner in the Local  Partnerships is
subject to the risks of potential  losses arising from  management and ownership
of improved real estate.  The Partnership's  investments also could be adversely
affected by poor economic  conditions  generally,  which could increase  vacancy
levels and rental payment defaults,  and by increased operating expenses, any or
all of which could threaten the financial  viability of one or more of the Local
Partnerships.

There also are  substantial  risks  associated  with the  operation of Apartment
Complexes   receiving   government   assistance.   These  include   governmental
regulations  concerning tenant eligibility,  which may make it more difficult to
rent apartments in the Apartment Complexes; difficulties in obtaining government
approval for rent  increases;  limitations on the percentage of income which low
and moderate income tenants may pay as rent; the  possibility  that Congress may
not appropriate  funds to enable the Department of Housing and Urban Development
("HUD") to make the rental  assistance  payments it has  contracted to make; and
that when the rental assistance  contracts expire there may not be market demand
for apartments at full market rents in a Local Partnership's Apartment Complex.

Item 1B.  Unresolved Staff Comments

Not applicable

                                       3
<PAGE>

Item 2.  Properties

As of March 31, 2007, the Partnership has acquired an interest in fourteen Local
Partnerships,  all of which have been  consolidated.  Except for the interest in
New Zion Apartments,  L.P. ("New Zion"),  the  Partnership's  investment in each
Local Partnership  represents  98.99% or 99.89% of the partnership  interests in
the Local  Partnership.  The  Partnership's  investment  in New Zion  represents
58.12% of the  partnership  interest in the  subsidiary  partnership  (the other
41.86% limited partnership interest is owned by an affiliate of the Partnership,
with the same  management).  Through  the  rights of the  Partnership  and/or an
affiliate of the General Partner,  which affiliate has a contractual  obligation
to act on behalf  of the  Partnership,  to remove  the  general  partner  and to
approve certain major operating and financial  decisions,  the Partnership has a
controlling financial interest in all of the Local Partnerships it has invested.
Set forth  below is a  schedule  of the  Local  Partnerships  including  certain
information   concerning  their  respective   Apartment  Complexes  (the  "Local
Partnership  Schedule").  Further information  concerning the Local Partnerships
and their properties, including any encumbrances affecting the properties may be
found in Item 15. Schedule III .
<TABLE>
<CAPTION>
                           Local Partnership Schedule
                           --------------------------

                                                                    Percentage of Units Occupied at May 1,
             Name and Location                                    ------------------------------------------
             (Number of Units)                    Date Acquired    2007     2006     2005     2004     2003
----------------------------------------------   --------------   ------   ------   ------   ------   ------
<S>                                              <C>                <C>      <C>      <C>      <C>       <C>
BX-8A Team Associates, L.P.
  Bronx, NY (41)                                 October 1995        98%     100%     100%      98%       93%

Westminster Park Plaza
  (a California Limited Partnership)
  Los Angeles, CA (130)                          June 1996           94%      91%      94%      98%       98%

Fawcett Street Limited Partnership
  Tacoma, WA (60)                                June 1996           93%      97%     100%      97%      100%

Figueroa Senior Housing Limited Partnership
  Los Angeles, CA (66)                           November 1996       91%      97%      97%      98%       98%

NNPHI Senior Housing Limited Partnership
  Los Angeles, CA (75)                           December 1996      100%     100%     100%      97%       99%

Belmont/McBride Apartments Limited Partnership
  Paterson, NJ (42)                              January 1997       100%      98%      95%     100%       98%

Sojourner Douglass, L.P.
  Paterson, NJ (20)                              February 1997      100%     100%     100%     100%      100%

New Zion Apartments Limited Partnership
  Shreveport, LA (100)                           October 1997       100%     100%      94%      96%       95%

Bakery Village Urban Renewal Associates, L.P.
  Montclair, NJ (125)                            December 1997       97%      98%      98%      98%       99%

Marlton Housing Partnership, L.P.
  (a Pennsylvania limited partnership)
  Philadelphia, PA (25)                          May 1998            84%     100%      96%      96%       92%

GP Kaneohe Limited Partnership
  Kaneohe, HI (44)                               July 1999          100%      96%     100%     100%      100%

KSD Village Apartments, Phase II, Ltd.
  Danville, KY (16)                              July 1999           94%     100%      94%     100%       94%

Kanisa Apartments, Ltd.
  Fayette County, KY (59)                        October 1999        78%      86%      92%      86%       88%

Guymon Housing Partners, L.P.
  Guymon, OK (92)                                December 1999       91%      95%      96%      96%      100%
</TABLE>

Leases are generally for periods not greater than one to two years and no tenant
occupies  more than 10% of the  total  rentable  square  footage  in any  single
Apartment Complex.

Management  continuously  reviews  the  physical  state  of the  properties  and
suggests to general partner of the respective Local Partnership  ("Local General
Partners")  budget  improvements  which are generally funded from cash flow from
operations or release of replacement reserve escrows.

Management  periodically  reviews the insurance  coverage of the  properties and
believes such coverage is adequate.

                                       4
<PAGE>

See Item 1, Business,  above for the general competitive conditions to which the
Properties described above are subject.

Real estate taxes are calculated using rates and assessed valuations  determined
by the  township  or city in which the  Property  is  located.  Such  taxes have
approximated  less than 1% of the aggregate  cost of the  Properties as shown in
Schedule III included herein.

Tax  Credits  with  respect to a given  Apartment  Complex are  available  for a
ten-year period that commences when the Property is rented to qualified tenants.
However,  the annual Tax Credits  available  in the year in which the  Apartment
Complex is placed in service must be prorated based upon the months remaining in
the year.  The amount of the annual Tax Credit not  available  in the first year
will be  available in the  eleventh  year.  In certain  cases,  the  Partnership
acquired its interest in a Local  Partnership  after the Local  Partnership  had
placed its Apartment Complex in service.  In these cases, the Partnership may be
allocated Tax Credits only  beginning in the month  following the month in which
it acquired its  interest and Tax Credits  allocated in any prior period are not
available to the Partnership.

Item 3.  Legal Proceedings

None

Item 4.  Submission of Matters to a Vote of Security Holders

None.


                                       5
<PAGE>

                                     PART II


Item 5. Market for Registrant's  Common Equity,  Related Security Holder Matters
and Issuer Purchases of Equity Securities

As of March 31, 2007, the Partnership had issued and outstanding  45,844 Limited
Partnership  Interests,  each representing a $1,000 capital  contribution to the
Partnership,  or an aggregate  capital  contribution of $45,844,000.  All of the
issued  and  outstanding  Limited  Partnership  Interests  have  been  issued to
Independence  Assignor Inc. (the "Assignor Limited Partner"),  which has in turn
issued 45,844 BACs to the purchasers  thereof for an aggregate purchase price of
$45,844,000.  Each BAC  represents  all of the economic and virtually all of the
ownership  rights  attributable  to a Limited  Partnership  Interest held by the
Assignor  Limited  Partner.  BACs  may be  converted  into  Limited  Partnership
Interests at no cost to the holder (other than the payment of transfer costs not
to  exceed  $100),  but  Limited  Partnership  Interests  so  acquired  are  not
thereafter convertible into BACs.

Neither  the  BACs nor the  Limited  Partnership  Interests  are  traded  on any
established  trading market. The Partnership does not intend to include the BACs
for  quotation  on NASDAQ or for  listing  on any  national  or  regional  stock
exchange or any other  established  securities  market.  The Revenue Act of 1987
contained  provisions  which have an adverse  impact on  investors  in "publicly
traded  partnerships."  Accordingly,  the General  Partner  has imposed  limited
restrictions  on the  transferability  of the BACs and the  Limited  Partnership
Interests in secondary market  transactions.  Implementation of the restrictions
should prevent a public trading market from developing and may adversely  affect
the ability of an investor to liquidate  his or her  investment  quickly.  It is
expected that such procedures will remain in effect until such time, if ever, as
further revision of the Revenue Act of 1987 may permit the Partnership to lessen
the scope of the restrictions.

As of May 25, 2007, the Partnership has approximately  2,539 registered  holders
of an aggregate of 45,844 BACs.

All  of  the  Partnership's  general  partnership  interests,   representing  an
aggregate capital contribution of $1,000, are held by the General Partner.

There are no material legal  restrictions  in the  Partnership  Agreement on the
ability of the Partnership to make distributions.

The  Partnership has made no  distributions  to the BACs holders as of March 31,
2007. The Partnership  does not anticipate  providing cash  distributions to its
BACs holders other than from net refinancing or sales proceeds.

Transfer Procedures
-------------------
The Partnership  from time to time receives  requests by unit holders and others
to transfer BACs and/or limited partnership  interests.  Such requests may occur
in connection  with tender  offers for the  Partnership's  units.  Such requests
implicate  the  Partnership's   policies  and  procedures  concerning  transfers
generally and tender offers in particular, which were adopted by the Partnership
pursuant to the terms of its Partnership  Agreement,  to ensure  compliance with
applicable  law,  avoid adverse tax  consequences  for the  Partnership  and its
investors, and preserve the Partnership's advantageous tax status.

In prior years,  the  Partnership  relied on the 5% safe harbor  established  by
Internal Revenue Service ("IRS")  regulations to avoid being  characterized as a
"publicly-traded  partnership"  that  is  taxed  as a  corporation.  The 5% safe
harbor,  however,  expired and is no longer  available  as of December 31, 2005.
Accordingly,  the  Partnership  now relies on a 2% safe  harbor  established  by
another  IRS  regulation  to avoid  being  characterized  as a  "publicly-traded
partnership" that is taxed as a corporation.

A brief  summary of certain of the  Partnership's  key  policies,  practices and
requirements with respect to transfers and tender offers is as follows:

     o    No transfer  (whether for  substitution,  assignment  or otherwise) is
          effective  or  binding  on the  Partnership  unless  and  until  it is
          approved by the General Partner.

     o    No transfer  will be approved  unless the  transferor  and  transferee
          submit complete and properly  executed forms of the  Partnership's own
          transfer  documentation.  The  Partnership  does not  accept  forms of
          transfer  documentation  other  than  its  own  and  does  not  accept
          signatures made by power of attorney in lieu of original signatures by
          each of the transferors and transferees.

     o    The  Partnership  will not approve  transfers  that in the  cumulative
          aggregate  for any tax year  exceed the IRS 2% safe  harbor,  unless a
          financially  responsible  person  provides  the  Partnership  and  its
          partners  with (i) an  indemnity  (in form and  substance  in all ways
          acceptable  to the  General  Partner)  for all  liability  (including,
          without  limitation,  any adverse tax  consequences)  arising  from or
          relating to exceeding  the 2% safe harbor and (ii) a legal opinion (in
          form and substance in all ways acceptable to the General Partner) that
          there will be no adverse tax  consequences  to the Partnership and its
          partners from exceeding the 2% safe harbor.

     o    It order to avoid  the  undesirable  situation  of one or more  tender
          offers  consuming the entire safe harbor  limitation  early in the tax
          year  and  leaving  the  Partnership's  remaining  investors  with  no
          liquidity  opportunity  for the rest of that tax year, the Partnership
          restricts the cumulative aggregate total of transfers made pursuant to
          all tender offers to 1.5% of its  outstanding  units in each tax year,
          unless a financially  responsible  person conducting such tender offer
          provides  the  Partnership  with an  acceptable  indemnity  and  legal
          opinion of the type described  above. At the end of each tax year, the
          General  Partner,  in its discretion,  may allow the cumulative  total
          number of transfers  (including those by tender offer) to reach the 2%
          safe harbor limit.

     o    The  Partnership  requires  that all  tender  offers  for its units be
          conducted in accordance  with all applicable  law  including,  without
          limitation, the federal securities laws.

The foregoing is solely a summary of the  Partnership's  policies,  requirements
and  practices  with  respect to  transfers  and tender  offers.  More  complete
information,  including  a copy  of  the  Partnership's  transfer  documentation
package, may be obtained from the Partnership.

                                       6
<PAGE>

Item 6.  Selected Financial Data

The  information  set  forth  below  presents  selected  financial  data  of the
Partnership.  Additional  financial  information  is set  forth  in the  audited
financial statements in Item 8 hereof.
<TABLE>
<CAPTION>
                                                                 Year Ended March 31,
                                     ----------------------------------------------------------------------------
            OPERATIONS                   2007           2006           2005            2004             2003
----------------------------------   -------------  -------------   -------------  -------------   --------------
<S>                                  <C>            <C>            <C>             <C>             <C>
 Revenues                            $  6,275,039   $  6,145,225   $   5,968,825   $   5,869,146   $    5,799,931

 Operating expenses                    (9,295,073)    (9,205,626)     (9,234,871)     (8,956,621)      (9,213,437)
                                     -------------  -------------   -------------  -------------   --------------

 Loss before minority interest         (3,020,034)    (3,060,401)     (3,266,046)     (3,087,475)      (3,413,506)

 Minority interest in loss of
  subsidiary partnerships                   16,845         14,225          29,336          26,201           34,355
                                     -------------  -------------   -------------  -------------   --------------

 Net loss                            $ (3,003,189)  $ (3,046,176)  $  (3,236,710)  $  (3,061,274)  $   (3,379,151)
                                     =============  =============   =============  =============   ==============

 Net loss per weighted average BAC   $     (64.85)  $     (65.78)  $      (69.90)  $      (66.11)  $       (72.97)
                                     =============  =============   =============  =============   ==============
<CAPTION>

                                                                 Year Ended March 31,
                                     ----------------------------------------------------------------------------
        FINANCIAL POSITION               2007           2006*            2005*          2004*           2003*
----------------------------------   -------------  -------------   -------------  -------------   --------------
<S>                                  <C>            <C>            <C>             <C>             <C>
 Total assets                        $ 66,020,451   $ 68,494,315   $   71,011,719  $  73,413,762   $   75,697,110
                                     =============  =============   =============  =============   ==============

 Total liabilities                   $  50,914,576  $ 50,352,846   $   49,809,849  $  48,933,879   $   48,129,752
                                     =============  =============   =============  =============   ==============

 Minority interest                   $  1,837,730   $  1,870,135   $    1,884,360  $   1,925,663   $    1,951,864
                                     =============  =============   =============  =============   ==============

 Total partners' capital             $ 13,268,145   $ 16,271,334   $   19,317,510  $  22,554,220   $   25,615,494
                                     =============  =============   =============  =============   ==============
</TABLE>
*  Reclassified for comparative purposes.

At March 31,  2007,  total  assets  decreased  approximately  $2,455,000  due to
depreciation  and  amortization  and a  reduction  in cash and cash  equivalents
offset by an increase in cash held in escrow.  At March 31, 2006,  2005 2004 and
2003, total assets decreased approximately  $2,571,000,  $2,477,000,  $2,369,000
and $3,104,000 due to depreciation  and amortization and a reduction in cash and
cash  equivalents.  At March 31, 2007, 2006,  2005, 2004 and 2003,  property and
equipment decreased approximately $2,456,000, $2,296,000, $2,353,000, $2,358,000
and $2,532,000  primarily due to depreciation  expense. At March 31, 2007, 2006,
2005, 2004 and 2003, mortgage notes decreased approximately $498,000,  $549,000,
$214,000, $89,000 and $399,000, respectively.

                                       7
<PAGE>

Item 7. Management's  Discussion and Analysis of Financial Condition and Results
of Operations

Liquidity and Capital Resources
-------------------------------

As of March 31, 2007, the  Partnership  has invested  approximately  $37,555,000
(including   approximately   $902,000   classified  as  a  loan  repayable  from
sale/refinancing  proceeds in accordance with the contribution agreement and not
including  acquisition fees of approximately  $1,771,000) of the net proceeds of
the Offering in fourteen Local Partnerships,  of which approximately  $1,039,000
remains to be paid to the Local Partnerships  (including  approximately $500,000
being held in  escrow)  as certain  benchmarks,  such as  occupancy  level,  are
attained  prior to the  release  of the funds.  During the year ended  March 31,
2007, approximately $39,000 was paid to Local Partnerships. The Partnership does
not anticipate  acquiring  additional  properties,  but the  Partnership  may be
required  to fund  potential  purchase  price  adjustments  based on tax  credit
adjustor  clauses.  There were no such  adjustments  made  during the year ended
March 31, 2007.

The Partnership has received  $45,844,000 in gross proceeds for BACs pursuant to
the Offering,  which closed in August 1996,  resulting in net proceeds available
for investment of approximately  $36,653,000 after volume discounts,  payment of
sales  commissions,  acquisition  fees and expenses,  organization  and offering
expenses and establishment of a working capital reserve.

Short-Term
----------

The  Partnership's  primary source of funds include (i) interest earned on Gross
Proceeds  which are  invested in  tax-exempt  money market  instruments  pending
purchase  price  adjustments  of Local  Partnerships  and (ii)  working  capital
reserve  and  interest  thereon.   All  these  sources  are  available  to  meet
obligations of the Partnership.

As of March 31,  2007,  cash and cash  equivalents  of the  Partnership  and its
fourteen consolidated Local Partnerships decreased approximately $110,000 due to
an increase of cash held in escrow relating to investing activities of $109,000,
repayments of mortgage notes of $498,000, a net decrease in due to local general
partners and affiliates relating to investing activities of $80,000, an increase
in deferred costs of $12,000 and a decrease in  capitalization  of  consolidated
subsidiaries  attributable  to minority  interest of $16,000 which exceeded cash
provided by operating  activities of $535,000 and a net decrease in property and
equipment of $70,000.  Included in the  adjustments to reconcile the net loss to
net  cash  provided  by  operations  is   depreciation   and   amortization   of
approximately $2,511,000.

Total  expenses  for the years ended  March 31,  2007,  2006 and 2005  excluding
depreciation and amortization, interest and general and administrative - related
parties, totaled $4,172,466, $3,998,978 and $4,062,712,  respectively.  Accounts
payable and other liabilities totaled $10,360,182 and $9,675,759,  respectively,
which are comprised of the following amounts:
<TABLE>
<CAPTION>
                                                               March 31,
                                                      --------------------------
                                                         2007            2006
                                                      -----------    -----------
<S>                                                   <C>            <C>
Accounts payable                                      $   451,390    $   481,944
Accrued interest payable                                9,493,633      8,791,745
Security deposits payable                                 415,159        402,070
                                                      -----------    -----------

  Total accounts payable and other liabilities        $10,360,182    $ 9,675,759
                                                      ===========    ===========
</TABLE>


Accounts payable are short term  liabilities  which are expected to be paid from
operating cash flows,  working capital balances at the Local Partnership  level,
local general partner  advances and in certain  circumstances  advances from the
Partnership.  Because the provisions of the secondary loans defer the payment of
accrued interest of the respective Local Partnerships,  the Partnership believes
it (and the applicable Local Partnerships) has sufficient  liquidity and ability
to generate cash and to meet existing and known or reasonably likely future cash
requirements over both the short and long term.

As  indicated  in  the  above  table,   accrued   interest   payable   comprised
approximately  92% and 91% of the total accounts  payable and other  liabilities
amount at March 31,  2007 and 2006,  respectively.  Such amount  represents  the
accrued  interest on all mortgage  loans,  which  include  primary and secondary
loans. Certain secondary loans have provisions such that interest is accrued but
not payable  until a future date.  The  Partnership  anticipates  the payment of
accrued  interest on the  secondary  loans  (which  make up the  majority of the
accrued interest payable amount indicated in the above table and which have been
accumulating  since  the  Partnership's   investment  in  the  respective  Local
Partnership)  will be made from  future  refinancings  or sales  proceeds of the
respective Local Partnerships.  In addition,  each Local Partnership's  mortgage
notes are  collateralized  by the land and  buildings  of the  respective  Local
Partnership, and are without further recourse to the Partnership.

Security  deposits payable are offset by cash held in security  deposits,  which
are included in "Cash held in escrow" on the financial statements.

Partnership   management  fees  owed  to  the  General   Partner   amounting  to
approximately  $2,641,000 and $2,304,000 were accrued and unpaid as of March 31,
2007 and 2006, respectively

A working  capital  reserve has been  designated  from the  Partnership's  funds
available  for  investment,  which  includes  amounts  which may be required for
potential  purchase price adjustments  based on tax credit adjustor clauses.  At
March 31, 2007,  approximately  $112,000 of this reserve  remained  unused.  The
General  Partner  believes  that  these  reserves,  plus any cash  distributions
received from the  operations of the Local  Partnerships,  will be sufficient to
fund the  Partnership's  ongoing  operations for the  foreseeable  future.  Cash
distributions received from the Local Partnerships remain relatively immaterial.
During the years ended March 31, 2007, 2006 and 2005, the  Partnership  received
distributions  from  operations  of the Local  Partnerships  in the  amounts  of
$15,561, $0 and $0, respectively. Management anticipates receiving distributions
in the future,  although  not to a level  sufficient  to permit  providing  cash
distributions to the BACs holders.

                                       8
<PAGE>

The Partnership had negotiated  Operating  Deficit Guaranty  Agreements with the
development stage Local Partnerships by which the general partners of such Local
Partnerships  and/or their affiliates have agreed to fund operating deficits for
a  specified  period  of time.  The  terms  of the  Operating  Deficit  Guaranty
Agreements  vary for each of  these  Local  Partnerships,  with  maximum  dollar
amounts to be funded for a  specified  period of time,  generally  three  years,
commencing on the break-even date. As of both March 31, 2007 and 2006, the gross
amount of the Operating Deficit Guarantees aggregate  approximately  $1,897,000.
As of both  March 31,  2007 and 2006,  $0 has been  funded  under the  Operating
Deficit  Guaranty  Agreements.  Amounts  funded  under such  agreements  will be
treated as  non-interest  bearing  loans,  which will be paid only out of 50% of
available cash flow or out of available net sale or refinancing proceeds.

Long-Term
---------

The Partnership has invested all of the net proceeds available for investment in
fourteen Local Partnerships, all of which will generate Tax Credits in 2007. Due
to increased  market demand for  investments in properties that were eligible to
receive Tax Credits at the time the  Partnership  was  investing its capital and
limitations on the types of investments which may be obtained by the Partnership
the purchase price for interests in Local  Partnerships  which are qualified for
purchase  by the  Partnership  have  increased.  As a result  of these  changes,
management  does not believe  that the  Partnership  has been able to invest the
proceeds  available for investment in a manner which will enable the Partnership
to achieve  Tax Credits in  originally  anticipated  range of $140-150  for each
$1,000 BAC each year in which the Partnership is receiving its full  entitlement
of Tax  Credits.  The  anticipated  tax  credits  for  2007,  2008  and 2009 are
$4,562,159, $2,986,779 and $401,932, respectively.

Management is not aware of any trends or events,  commitments or  uncertainties,
which  have not  otherwise  been  disclosed  that  will or are  likely to impact
liquidity in a material way.  Management  believes the only impact would be from
laws  that  have not yet been  adopted.  The  portfolio  is  diversified  by the
location of the  Properties  around the United States so that if one area of the
country is experiencing  downturns in the economy,  the remaining  Properties in
the   portfolio   may  be   experiencing   upswings.   However  the   geographic
diversification  of the portfolio may not protect against a general  downturn in
the national economy. Tax Credits will be attached to a Property for a period of
ten years,  and will be  transferable  with the Property during the remainder of
such ten-year period.  If trends in the real estate market warranted the sale of
a Property,  the remaining tax credits would transfer to the new owner,  thereby
adding value to the Property on the market.  However,  such value  declines each
year and is not included in the financial  statement carrying amount. The Credit
Periods are scheduled to expire at various times through  December 31, 2010 with
respect  to the  Local  Partnerships  depending  upon  when the  Credit  Periods
commenced.

Tabular Disclosure of Contractual Obligations
---------------------------------------------

The following  table  summarizes the  Partnership's  commitments as of March 31,
2007, to make future  payments under its debt  agreements and other  contractual
obligations.
<TABLE>
<CAPTION>
                                            Less than        1-3           3-5        More than
                                Total         1 Year        Years         Years        5 Years
                             -----------   -----------   -----------   -----------   -----------
<S>                          <C>           <C>           <C>           <C>           <C>
Mortgage notes payable (a)   $35,051,752   $   476,592   $ 1,151,514   $ 1,145,828   $32,277,818
                             ===========   ===========   ===========   ===========   ===========
</TABLE>

(a)  The  mortgage  loans are  payable  in  aggregate  monthly  installments  of
     approximately  $119,000 including principal and interest with rates varying
     from 0% to 9.11%  per  annum  and have  maturity  dates  ranging  from 2008
     through 2051. The loans are collateralized by the land and buildings of the
     subsidiary partnerships, the assignment of certain subsidiary partnerships'
     rents and leases, and are without further recourse.


Off Balance Sheet Arrangements
------------------------------

The Partnership has no off-balance sheet arrangements.

Critical Accounting Policies
----------------------------

In  preparing  the  consolidated  financial  statements,   management  has  made
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  at the  date  of the  consolidated  financial  statements  and  the
reported amounts of revenues and expenses during the reporting  periods.  Actual
results could differ from those  estimates.  Set forth below is a summary of the
accounting  policies that management believes are critical to the preparation of
the consolidated financial statements.

a) Property and Equipment/Valuation of Long-Lived Assets

Property and  equipment  to be held and used are carried at cost which  includes
the purchase price,  acquisition fees and expenses, and any other costs incurred
in acquiring the  Properties.  The cost of property and equipment is depreciated
over their estimated useful lives using accelerated and  straight-line  methods.
Expenditures  for repairs and  maintenance  are charged to expense as  incurred;
major  renewals  and  betterments  are  capitalized.  At the time  property  and
equipment  are  retired  or  otherwise  disposed  of,  the cost and  accumulated
depreciation  are  eliminated  from  the  assets  and  accumulated  depreciation
accounts  and the profit or loss on such  disposition  is reflected in earnings.
The  Partnership  complies  with  Statement  of Financial  Accounting  Standards
("SFAS")  No. 144  "Accounting  for the  Impairment  or Disposal  of  Long-Lived
Assets".  A loss on impairment of assets is recorded when  management  estimates
amounts  recoverable  through  future  operations and sale of the Property on an
undiscounted basis are below depreciated cost. At that time Property investments
themselves are reduced to estimated fair value  (generally using discounted cash
flows) when the Property is considered to be impaired and the  depreciated  cost
exceeds estimated fair value.

Through March 31, 2007, the  Partnership has not recorded any loss on impairment
of assets or reductions to estimated fair value.

                                       9
<PAGE>

b)  Revenue Recognition

Rental  income is earned  under  standard  residential  operating  leases and is
typically  due the first day of each month,  but can vary by property due to the
terms of the tenant leases.  Rental income is recognized when earned and charged
to tenants' accounts receivable if not received by the due date. Rental payments
received in advance of the due date are deferred until earned.  Rental subsidies
are recognized as rental income during the month in which it is earned.

Other  revenues are  recorded  when earned and consist of the  following  items:
Interest  income  earned on cash and cash  equivalent  balances and cash held in
escrow balances,  income from forfeited security deposits, late charges, laundry
and vending income and other rental related items.

Other revenues  include the following  amounts at both the Partnership and Local
Partnership level:
<TABLE>
<CAPTION>
                                              Years Ended March 31,
                                -----------------------------------------------
                                    2007             2006             2005
                                -------------    -------------    -------------
<S>                             <C>              <C>              <C>
Interest                        $      98,315    $      68,739    $      34,738
Other                                 237,597          199,907          249,548
                                -------------    -------------    -------------
  Total other revenue           $     335,912    $     268,646    $     284,286
                                =============    =============    =============
</TABLE>


c)  Related Parties

Under the terms of the Partnership  Agreement,  the Partnership has entered into
certain arrangements with the General Partner and its affiliates,  which provide
for  compensation  to be paid to the General  Partner and its  affiliates.  Such
arrangements  include (but are not limited to)  agreements  to pay  nonrecurring
acquisition fees, a nonaccountable acquisition expense allowance, an accountable
expense  reimbursement and subordinated  disposition fees to the General Partner
and/or its  affiliates.  In  addition,  the  General  Partner is  entitled  to a
subordinated  interest in cash from sales or  refinancings  and a 1% interest in
net income,  net loss,  distributions  of adjusted cash from operations and cash
from sales or refinancings.  Certain members and officers of the General Partner
receive  compensation  from the General  Partner and its affiliates for services
performed for various  affiliated  entities which may include services performed
for the Partnership.  The maximum annual partnership  management fee paid to the
General  Partner  is 0.5% of  invested  assets.  See Note 8 in Item 8,  which is
incorporated herein by reference.

Results of Operations
---------------------

The net loss  for the  years  ended  March  31,  2007,  2006  and  2005  totaled
$3,003,189, $3,046,176 and $3,236,710, respectively.

The Partnership and BACs holders began recognizing Tax Credits with respect to a
Property when the Credit Period for such Property commenced. Because of the time
required for the acquisition,  completion and rent-up of Properties,  the amount
of Tax Credits per BAC has gradually increased over the first three years of the
Partnership.  Tax  Credits  not  recognized  in the first  three  years  will be
recognized in the 11th through 13th years. The Partnership generated $5,058,701,
$5,292,899 and $5,356,768 of Tax Credits during each of the 2006,  2005 and 2004
tax years, respectively.

The Partnership's results of operations for the years ended March 31, 2007, 2006
and 2005 consisted  primarily of the results of the Partnership's  investment in
fourteen  consolidated  Local  Partnerships.  The majority of Local  Partnership
income  continues  to be in the form of  rental  income  with the  corresponding
expenses being divided among operations, depreciation and mortgage interest.

2007 vs. 2006
-------------

Rental income  increased  approximately  1% for the year ended March 31, 2007 as
compared to the  corresponding  period  ended March 31, 2006,  primarily  due to
rental rate  increases at several  Local  Partnerships  as well as a decrease in
vacancies at one Local  Partnership  offset by an increase in vacancies at three
additional Local Partnerships.

Other income increased  approximately  $67,000 for the year ended March 31, 2007
as compared to the corresponding  period ended March 31, 2006,  primarily due to
increases  in  interest  income due to higher  interest  rates at several  Local
Partnerships  as  well  as the  Partnership  level,  the  write-off  of  accrued
administrative  fees  that had  been  accrued  for  several  years at one  Local
Partnership and the receipt of insurance  proceeds for damages caused by a storm
at a second Local Partnership.

Total expenses,  excluding general and  administrative-related  parties, repairs
and maintenance,  and taxes, remained fairly consistent with an increase of less
than 1% for the year  ended  March 31,  2007 as  compared  to the  corresponding
period ended March 31, 2006.

General and administrative-related  parties decreased approximately $105,000 for
the year ended March 31,  2007,  as compared to the  corresponding  period ended
March 31, 2006,  primarily  due to decreases  in expense  reimbursements  at the
Partnership level.

Repairs and  maintenance  increased  approximately  $134,000  for the year ended
March 31, 2007 as compared to the corresponding  period ended March 31, 2006 due
to increases in painting and decorating, maintenance payroll and security at one
Local  Partnership,  an increase in repairs due to a HUD  inspection at a second
Local  Partnership  and increases in roofing and stucco repairs at a third Local
Partnership.

Taxes  increased  approximately  $36,000  for the year ended  March 31,  2007 as
compared to the corresponding  period ended March 31, 2006 due to an increase in
taxes in 2006 that was retroactive to the 2005 tax year at one Local Partnership
offset by a refund received and a reversal of accruals in 2006 at a second Local
Partnership.

                                       10
<PAGE>

2006 vs. 2005
-------------

Rental income  increased  approximately  3% for the year ended March 31, 2006 as
compared to the corresponding  period ended March 31, 2005, primarily due to HUD
increasing  rents  approximately  20% at one Local  Partnership,  an increase in
occupancy at a second Local  Partnership  and rental rate increases at the other
Local Partnerships.

Total expenses,  excluding general and administrative-related  parties, remained
fairly  consistent with a decrease of  approximately 2% for the year ended March
31, 2006 as compared to the corresponding period ended March 31, 2005.

General and administrative-related  parties increased approximately $102,000 for
the year ended March 31,  2006,  as compared to the  corresponding  period ended
March 31, 2005,  primarily due to an increase in expense  reimbursements  at the
Partnership level and a one time adjustment to local  administrative fees due to
underaccruals of prior years' fees at one Local Partnership.

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

Mortgage notes are payable in aggregate monthly installments including principal
and interest at rates varying from 0% to 9.11% per annum.  The Partnership  does
not believe there is a material risk associated with the various  interest rates
associated  with the  mortgage  notes as the  majority of the Local  Partnership
mortgage notes have fixed rates. The Partnership  currently discloses in Item 8,
Note 3 of the Notes to Consolidated Financial Statements,  the fair value of the
mortgage notes payable.

The Partnership's  investment as a limited partner in the Local  Partnerships is
subject to the risks of potential  losses arising from  management and ownership
of improved real estate.  The Partnership's  investments also could be adversely
affected by poor economic  conditions  generally,  which could increase  vacancy
levels and rental payment defaults and by increased operating  expenses,  any or
all of which could threaten the financial  viability of one or more of the Local
Partnerships.

There also are  substantial  risks  associated  with the  operation of Apartment
Complexes   receiving   government   assistance.   These  include   governmental
regulations  concerning tenant eligibility,  which may make it more difficult to
rent apartments in the Apartment Complexes; difficulties in obtaining government
approval for rent  increases;  limitations on the percentage of income which low
and moderate income tenants may pay as rent; the  possibility  that Congress may
not appropriate  funds to enable HUD to make the rental  assistance  payments it
has contracted to make;  and that when the rental  assistance  contracts  expire
there may not be market  demand for  apartments  at full market rents in a Local
Partnership's Apartment Complex.

The Local  Partnerships  are impacted by inflation  in several  ways.  Inflation
allows for  increases in rental rates  generally to reflect the impact of higher
operating and  replacement  costs.  Furthermore,  inflation  generally  does not
impact the fixed long-term financing under which real property  investments were
purchased. Inflation also affects the Local Partnerships adversely by increasing
operating  costs as, for example,  for such items as fuel,  utilities and labor.
However,  continued  inflation  may  result in  appreciated  values of the Local
Partnership's  apartment  complexes over a period of time as rental revenues and
replacement cost continue to increase.

The Partnership does not have any other market risk sensitive instruments.

                                       11
<PAGE>

Item 8. Financial Statements and Supplementary Data
                                                                      Sequential
                                                                         Page
                                                                      ----------

(a) 1.  Consolidated Financial Statements

        Report of Independent Registered Public Accounting Firm          13

        Consolidated Balance Sheets at March 31, 2007 and 2006           26

        Consolidated Statements of Operations for the years
          ended March 31, 2007, 2006 and 2005                            27

        Consolidated Statements of Changes in Partners' Capital
          (Deficit) for the years ended March 31, 2007, 2006
           and 2005                                                      28

        Consolidated  Statements  of Cash Flows for the years
          ended March 31, 2007, 2006 and 2005                            29

        Notes to Consolidated Financial Statements                       30


                                       12
<PAGE>



             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To the Partners
Independence Tax Credit Plus L.P. IV and Subsidiaries


We have audited the accompanying consolidated balance sheets of Independence Tax
Credit Plus L.P. IV and  Subsidiaries  (a Delaware  limited  partnership)  as of
March 31, 2007 and 2006, and the related consolidated  statements of operations,
changes in partners'  capital  (deficit) and cash flows for each of the years in
the  three-year  period  ended  March 31,  2007.  These  consolidated  financial
statements  are  the  responsibility  of  the  Partnership's   management.   Our
responsibility  is to express an opinion on these financial  statements based on
our audits.  We did not audit the  consolidated  financial  statements of twelve
subsidiary  partnerships,  whose losses aggregated $2,207,851 for the year ended
March 31, 2007 and whose assets constituted 88% of consolidated  assets at March
31, 2007.  Those  statements  were audited by other  auditors whose reports have
been  furnished  to us, and our  opinion,  insofar as it relates to the  amounts
included for these  subsidiary  partnerships,  is based solely on the reports of
the other auditors.

We  conducted  our  audits  in  accordance  with  the  standards  of the  Public
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial statements presentation. We believe that our audits and the reports of
the other auditors provide a reasonable basis for our opinion.

In our opinion,  based on our audits and the reports of the other auditors,  the
consolidated  financial  statements  referred to above  present  fairly,  in all
material  respects,  the financial position of Independence Tax Credit Plus L.P.
IV and  Subsidiaries  as of March 31,  2007 and 2006,  and the  results of their
operations  and their cash flows for each of the years  ended in the  three-year
period ended March 31, 2007, in conformity with accounting  principles generally
accepted in the United States of America.






/s/Friedman LLP

New York, New York
June 14, 2007

                                       13
<PAGE>

[Letterhead of REZNICK GROUP, P.C.]

INDEPENDENT AUDITORS' REPORT

To the Partners
BX 8A Team Associates, L.P.

We have audited the accompanying  balance sheet of BX 8A Team  Associates,  L.P.
for the year ended  December 31, 2006 and the related  statement of  operations,
changes in partners'  equity  (deficit)  and cash flows for the year then ended.
These  financial   statements  are  the   responsibility  of  the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audit.

We conducted  our audit in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material  misstatement.  The  Partnership  has determined
that it is not required to have, nor we were engaged to perform, an audit of its
internal control over financial reporting.  Our audit included  consideration of
internal  control  over  financial  reporting  as a basis  for  designing  audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Partnership's internal control
over  financial  reporting.  Accordingly,  we express no such opinion.  An audit
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the financial  statements.  An audit also includes  assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation.  We believe that our
audit provides a reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of BX 8A Team Associates,  L.P. as
of December 31, 2006,  and the results of its  operations and cash flows for the
year then ended, in conformity with accounting  principles generally accepted in
the United States of America.

The  accompanying  financial  statements  have been  prepared  assuming that the
Partnership  will  continue as a going  concern.  As discussed in Note 14 to the
financial  statements,  the  Partnership  has  suffered  recurring  losses  from
operations and has a net capital  deficiency that raises substantial doubt about
its ability to continue as a going concern. Management's plan in regard to these
opinion  matters are also described in Note 14. The financial  statements do not
include any adjustments that might result from the outcome of this uncertainty.

/s/ Reznick Group, P.C.
Atlanta, Georgia
May 7, 2007

                                       14
<PAGE>

[Letterhead of REZNICK GROUP, P.C.]

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners
Westminster Park Plaza, L.P.

We have audited the accompanying  balance sheet of Westminster Park Plaza,  L.P.
as of December 31, 2006,  and the related  statement of  operations,  changes in
partners'  deficit,  and cash  flows for the year then  ended.  These  financial
statements  are  the  responsibility  of  the  Partnership's   management.   Our
responsibility  is to express an opinion on these financial  statements based on
our audit.

We conducted  our audit in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. The Partnership is not required to
have,  nor were we engaged to perform,  an audit of its  internal  control  over
financial reporting.  Our audit included  consideration of internal control over
financial  reporting  as  a  basis  for  designing  audit  procedures  that  are
appropriate  in the  circumstances,  but not for the  purpose of  expressing  an
opinion  on  the  effectiveness  of  the  Partnership's  internal  control  over
financial  reporting.  Accordingly,  we express no such  opinion.  An audit also
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the financial  statements,  assessing the  accounting  principles
used and  significant  estimates made by  management,  as well as evaluating the
overall financial statement  presentation.  We believe that our audit provides a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of Westminster Park Plaza, L.P. as
of December 31, 2006 and the results of its operations, the changes in partners'
deficit,  and its cash  flows  for the  year  then  ended,  in  conformity  with
accounting principles generally accepted in the United States of America.

/s/ REZNICK GROUP
Sacramento, California
April 13, 2007

                                       15
<PAGE>

[LETTERHEAD OF MCDANIEL & HALLSTROM, CPA's]

To the Partners
FAWCETT STREET LIMITED PARTNERSHIP
Tacoma, Washington

INDEPENDENT AUDITOR'S REPORT

We have  audited  the  accompanying  balance  sheets of FAWCETT  STREET  LIMITED
PARTNERSHIP  as of December  31, 2006 and 2005,  and the related  statements  of
operations,  partners'  equity and cash flows for the years  then  ended.  These
financial statements are the responsibility of the Partnership's management. Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and  perform  the  audits to  obtain  reasonable  assurance  about  whether  the
financial  statements are free of material  misstatement.  The  Partnership  has
determined  that it is not required to have, nor were we engaged to perform,  an
audit of its  internal  control over  financial  reporting.  Our audit  included
consideration  of  internal  control  over  financial  reporting  as a basis for
designing audit  procedures that are appropriate in the  circumstances,  but not
for  the  purpose  of  expressing  an  opinion  on  the   effectiveness  of  the
Partnership's internal control over financial reporting. Accordingly, we express
no  such  opinion.  An  audit  includes  examining,  on a test  basis,  evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audits  provide a  reasonable  basis for our
opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all  material  respects,  the  financial  position  of  FAWCETT  STREET  LIMITED
PARTNERSHIP  as of December 31, 2006 and 2005, and the results of its operations
and its cash  flows for the  years  then  ended in  conformity  with  accounting
principles generally accepted in the United States of America.

/s/ McDaniel & Hallstrom, CPA's
Belfair, Washington
February 10, 2007

                                       16
<PAGE>

[LETTERHEAD OF CLIFFORD R. BENN, CPA]

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

General Partner
Figueroa Senior Housing Limited Partnership
Los Angeles, California

I have audited the balance sheet of Figueroa Senior Housing Limited  Partnership
at December 31, 2006, and the related  statements of loss,  changes in partners'
capital,  and cash flow for the year then ended. These financial  statements are
the responsibility of Figueroa Senior Housing Limited Partnership's  management.
My responsibility  is to express an opinion on these financial  statements based
on my audit.

I conducted my audit in  accordance  with the  standards  of the Public  Company
Accounting  Oversight Board. Those standards require that I plan and perform the
audit to obtain reasonable  assurance about whether the financial statements are
free of material  misstatement.  The  Partnership  has determined that it is not
required to have, nor was I engaged to perform, an audit of its internal control
over financial  reporting.  My audit included  consideration of internal control
over  financial  reporting as a basis for designing  audit  procedures  that are
appropriate  in the  circumstances,  but not for the  purpose of  expressing  an
opinion  on  the  effectiveness  of  the  Partnership's  internal  control  over
financial  reporting.  Accordingly,  I express  no such  opinion.  An audit also
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the financial  statements.  An audit also includes  assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial  statement  presentation.  I believe that my
audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all
material  respects,  the financial  position of Figueroa  Senior Housing Limited
Partnership  at December 31, 2006 and the results of its operations for the year
then ended in conformity with generally accepted  accounting  principles used in
the United States of America.

/s/ Clifford Benn, CPA
January 25, 2007
Carson, California

                                       17
<PAGE>

[LETTERHEAD OF CLIFFORD R. BENN, CPA]

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

General Partner
NNPHI Senior Housing, L.P.
Los Angeles, California

I have audited the balance sheet of NNPHI Senior  Housing,  L.P. at December 31,
2006, and the related statements of loss, changes in partners' capital, and cash
flow for the year then ended. These financial  statements are the responsibility
of NNPHI Senior Housing,  L.P.'s management.  My responsibility is to express an
opinion on these financial statements based on my audit.

I conducted my audit in  accordance  with the  standards  of the Public  Company
Accounting  Oversight Board. Those standards require that I plan and perform the
audit to obtain reasonable  assurance about whether the financial statements are
free of material  misstatement.  The  Partnership  has determined that it is not
required to have, nor was I engaged to perform, an audit of its internal control
over financial  reporting.  My audit included  consideration of internal control
over  financial  reporting as a basis for designing  audit  procedures  that are
appropriate  in the  circumstances,  but not for the  purpose of  expressing  an
opinion  on  the  effectiveness  of  the  Partnership's  internal  control  over
financial  reporting.  Accordingly,  I express  no such  opinion.  An audit also
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the financial  statements.  An audit also includes  assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial  statement  presentation.  I believe that my
audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all
material  respects,  the  financial  position of NNPHI Senior  Housing,  L.P. at
December 31, 2006,  and the results of its operations for the year then ended in
conformity  with generally  accepted  accounting  principles  used in the United
States of America.

/s/ Clifford Benn, CPA
January 25, 2007
Carson, California

                                       18
<PAGE>

[Letterhead of Favors Rettig, CPA's, P.S.]

INDEPENDENT AUDITOR'S REPORT

To the Partners
Belmont/McBride Apartments Urban Renewal Associates, L.P.

We have audited the  accompanying  balance sheet of  Belmont/McBride  Apartments
Urban  Renewal  Associates,  L.P.  as of  December  31,  2006,  and the  related
statements of operations,  partners'  equity  (deficit),  and cash flows for the
year then  ended.  These  financial  statements  are the  responsibility  of the
entity's  management.  Our  responsibility  is to  express  an  opinion on these
financial   statements  based  on  our  audit.   The  financial   statements  of
Belmont/McBride  Apartments  Urban Renewal  Associates,  L.P. as of December 31,
2005,  were  audited by other  auditors  whose  report  dated  January  13, 2006
expressed an unqualified opinion on those statements.

We conducted  our audit in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material  misstatement.  The  partnership  has determined
that it is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting.  Our audit included  consideration of
internal  control  over  financial  reporting  as a basis  for  designing  audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Partnership's internal control
over  financial  reporting.  Accordingly,  we express no such opinion.  An audit
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the financial  statements.  An audit also includes  assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation.  We believe that our
audit provides a reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial  position of  Belmont/McBride  Apartments
Urban Renewal  Associates,  L.P. as of December 31, 2006, and the results of its
operations and cash flows for the year then ended in conformity  with accounting
principles generally accepted in the United States of America.

/s/ Favors Rettig, CPA's, P.S.
Fircrest, Washington
February 16, 2007

                                       19
<PAGE>

[Letterhead of KOCH GROUP & COMPANY, LLP]

INDEPENDENT AUDITOR'S REPORT

To the Partners
Sojourner Douglas Urban Renewal Partnership, L.P.

We have  audited the  accompanying  balance  sheets of Sojourner  Douglas  Urban
Renewal  Partnership,  L.P. (A Limited  Partnership) as of December 31, 2006 and
2005 and the related  statements of operations,  changes in partners' equity and
cash  flows  for the  years  then  ended.  These  financial  statements  are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material  misstatement.  The  Partnership  has determined
that it is not required to have, nor we were engaged to perform, an audit of its
internal control over financial reporting.  Our audits included consideration of
internal  control  over  financial  reporting  as a basis  for  designing  audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Partnership's internal control
over  financial  reporting.  Accordingly,  we express no such opinion.  An audit
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the financial  statements.  An audit also includes  assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation.  We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly in all
material  respects,  the financial  position of Sojourner  Douglas Urban Renewal
Partnership,  L.P. (A Limited  Partnership) as of December 31, 2006 and 2005 and
the  results of its  operations,  changes in its  partners'  equity and its cash
flows  for the  years  then  ended  in  conformity  with  accounting  principles
generally accepted in the United States of America.

/s/ KOCH GROUP & COMPANY, LLP
New York, New York
January 26, 2007

                                       20
<PAGE>

[Letterhead of REZNICK GROUP, P.C.]

INDEPENDENT AUDITORS' REPORT

To the Partners
New Zion Apartments Limited Partnership
Shreveport, Louisiana

We have audited the  accompanying  balance sheet of New Zion Apartments  Limited
Partnership,  HUD Project No. LA48E000011, at December 31, 2006, and the related
statement  of income  partners',  capital and cash flow for the year then ended.
These  financial   statements  are  the   responsibility  of  the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audit.

We  conducted  our audit in  accordance  with  generally  accepted  standards as
established  by the Auditing  Standards  Board  (United  States),  the standards
applicable to financial audits contained in Government Auditing Standards issued
by the Comptroller General of the United States, and the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain  reasonable  assurance about whether the
financial statements are free of material  misstatement.  The Partnership is not
required  to have,  nor were we engaged  to  perform,  an audit of its  internal
control over financial reporting.  Our audit included  consideration of internal
control over financial  reporting as a basis for designing audit procedures that
are appropriate in the  circumstances,  but not for the purpose of expressing an
opinion  on  the  effectiveness  of  the  Partnership's  internal  control  over
financial  reporting.  Accordingly,  we express no such  opinion.  An audit also
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the financial  statements,  assessing the  accounting  principles
used and  significant  estimates made by  management,  as well as evaluating the
overall financial statement  presentation.  We believe that our audit provides a
reasonable basis for our opinion.

In our opinion,  the  financial  statements  referred to in the first  paragraph
above present fairly, in all material  respects,  the financial  position of New
Zion Apartments Limited Partnership at December 31, 2006, and the results of its
operations,  changes in  capital,  and its cash flows for the year then ended in
conformity with U.S. generally accepted accounting principles.

In accordance with Government Auditing Standards,  we have also issued a report,
dated  February  9, 2007 on our  consideration  of New Zion  Apartments  Limited
Partnership's  internal  control over financial  reporting.  The purpose of that
report  is to  describe  the  scope of our  testing  of  internal  control  over
financial  reporting  and the  results  of that  testing  and not to  provide an
opinion on the internal  control over financial  reporting.  In accordance  with
Government Auditing Standards, we have also issued an opinion dated February 19,
2007,  on New Zion  Apartments  Limited  Partnership's  compliance  with certain
provisions of laws,  regulations,  contracts,  and grant  agreements,  and other
matters  that could have a direct and  material  effect on a major  HUD-assisted
program.  Those reports are an integral part of an audit performed in accordance
with  Government  Auditing  Standards  and should be considered in assessing the
results of our audit.

Our audit was  conducted  for the  purpose  of  forming  an opinion on the basic
financial statements taken as a whole. The accompanying supplemental information
on pages 22 through 33 is presented for purposes of  additional  analysis and is
not a required part of the basic financial  statements of the partnership.  Such
information has been subjected to the auditing  procedures applied in the audits
of the basic financial  statements and, in our opinion,  is fairly stated in all
material  respects  in  relation to the basic  financial  statements  taken as a
whole.

/s/ Reznick Group, P.C.
Taxpayer Identification Number:
72-0506596
Atlanta, Georgia
February 23, 2007
Lead Auditor:  Joshua D. Northcutt, CPA

                                       21
<PAGE>

[Letterhead of REZNICK GROUP, P.C.]

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners
Bakery Village Urban Renewal Associates, L.P.

We have audited the  accompanying  balance sheet of Bakery Village Urban Renewal
Associates,  L.P.  as of  December  31,  2006,  and the  related  statements  of
operations,  changes in partners'  equity  (deficit) and cash flows for the year
then  ended.   These  financial   statements  are  the   responsibility  of  the
Partnership's  management.  Our responsibility is to express an opinion on these
financial statements based on our audit.

We conducted  our audit in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material  misstatement.  The  Partnership  has determined
that it is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting.  Our audit included  consideration of
internal  control  over  financial  reporting  as a basis  for  designing  audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Partnership's internal control
over financial reporting. Accordingly, we express no such opinion. An audit also
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the financial  statements,  assessing the  accounting  principles
used and  significant  estimates made by  management,  as well as evaluating the
overall financial statement  presentation.  We believe that our audit provides a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial  position of Bakery Village Urban Renewal
Associates,  L.P. as of December  31, 2006,  and the results of its  operations,
changes  in  partners'  equity  (deficit)  and its cash  flows for the year then
ended, in conformity with accounting principles generally accepted in the United
States of America.

/s/ REZNICK GROUP, P.C.
Baltimore, Maryland
April 11, 2007

                                       22
<PAGE>

[Letterhead of REZNICK GROUP, P.C.]

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners
Marlton Housing Partnership, L.P.

We have audited the accompanying  balance sheet of Marlton Housing  Partnership,
L.P. as of December 31, 2006, and the related statements of operations,  changes
in  partners'  equity  (deficit)  and cash flows for the year then ended.  These
financial statements are the responsibility of the partnership's management. Our
responsibility  is to express an opinion on these financial  statements based on
our audit.

We conducted  our audit in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material  misstatement.  The  Partnership  has determined
that it is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting.  Our audit included  consideration of
internal  control  over  financial  reporting  as a basis  for  designing  audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Partnership's internal control
over financial reporting. Accordingly, we express no such opinion. An audit also
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the financial  statements,  assessing the  accounting  principles
used and  significant  estimates made by  management,  as well as evaluating the
overall financial statement  presentation.  We believe that our audit provides a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects,  the financial  position of Marlton Housing  Partnership,
L.P. as of December  31,  2006,  and the results of its  operations,  changes in
partners'  equity  (deficit)  and its cash  flows  for the year then  ended,  in
conformity with accounting principles generally accepted in the United States of
America.

/s/ REZNICK GROUP
Baltimore, Maryland
March 28, 2007

                                       23
<PAGE>

[LETTERHEAD OF FAVORS & ASSOCIATES, CPA's, P.S.]

INDEPENDENT AUDITORS' REPORT

To the Partners
GP Kaneohe Limited Partnership

We  have  audited  the  accompanying   balance  sheets  of  GP  Kaneohe  Limited
Partnership  as of December  31, 2006 and 2005,  and the related  statements  of
operations, changes in partners' capital (deficit), and cash flows for the years
then ended.  These financial  statements are the  responsibility of the entity's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audits.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material  misstatement.  The  Partnership  has determined
that it is not required to have, nor we were engaged to perform, an audit of its
internal control over financial reporting.  Our audit included  consideration of
internal  control  over  financial  reporting  as a basis  for  designing  audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Partnership's internal control
over  financial  reporting.  Accordingly,  we express no such opinion.  An audit
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the financial  statements.  An audit also includes  assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation.  We believe that our
audits provide a reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects,  the financial position of GP Kaneohe Limited Partnership
as of December  31, 2006 and 2005,  and the results of its  operations  and cash
flows  for the  years  then  ended  in  conformity  with  accounting  principles
generally accepted in the United States of America.

/s/ Favors & Associates, CPA's, P.S.
Fircrest, Washington
February 16, 2007

                                       24
<PAGE>

[LETTERHEAD OF HANKINS & COMPANY]

INDEPENDENT AUDITOR'S REPORT

Partners
Guymon Housing Partners Limited Partnership
Fort Smith, Arkansas

We have  audited the  accompanying  balance  sheets of Guymon  Housing  Partners
Limited Partnership as of December 31, 2006 and 2005, and the related statements
of  operations,  changes in partners'  equity  (deficit)  and cash flows for the
years then ended.  These  financial  statements  are the  responsibility  of the
Partnership's  management.  Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing standards
as established by the Auditing Standards Board (United States) and in accordance
with the  standards of the Public  Company  Accounting  Oversight  Board (United
States).  Those  standards  require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  The  Partnership  has determined that it is not required to have,
nor were we engaged to perform,  an audit of its internal control over financial
reporting.  Our audit included  consideration of internal control over financial
reporting as a basis for designing audit  procedures that are appropriate in the
circumstances,  but  not  for  the  purpose  of  expressing  an  opinion  on the
effectiveness of the  Partnership's  internal control over financial  reporting.
Accordingly,  we express no such opinion. An audit includes examining, on a test
basis,  evidence  supporting  the  amounts  and  disclosures  in  the  financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of Guymon Housing Partners Limited
Partnership  as of December 31, 2006 and 2005, and the results of its operations
and its cash flows for the years  then  ended,  in  conformity  with  accounting
principles generally accepted in the United States of America.

/s/ Hankins & Company
February 26, 2007
Fort Smith, Arkansas

                                       25
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                     ASSETS

                                                                                         March 31,
                                                                               ----------------------------
                                                                                   2007            2006*
                                                                               ------------    ------------
<S>                                                                            <C>             <C>
Property and equipment - at cost, less accumulated depreciation
  (Notes 2 and 4)                                                              $ 59,929,615    $ 62,385,207
Cash and cash equivalents (Notes 2 and 10)                                        1,375,669       1,486,123
Cash held in escrow (Note 5)                                                      3,400,368       3,231,430
Deferred costs, less accumulated amortization (Notes 2 and 6)                       486,343         599,913
Due from local general partners and affiliates (Note 8)                             231,589         250,946
Other assets                                                                        596,867         540,696
                                                                               ------------    ------------

Total assets                                                                   $ 66,020,451    $ 68,494,315
                                                                               ============    ============


                                 LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)


Liabilities:
  Mortgage notes payable (Note 7)                                              $ 35,051,752    $ 35,549,933
  Accounts payable and other liabilities                                         10,360,182       9,675,759
  Due to local general partners and affiliates (Note 8)                           1,775,063       1,865,722
  Due to general partner and affiliates (Note 8)                                  3,727,579       3,261,432
                                                                               ------------    ------------

Total liabilities                                                                50,914,576      50,352,846
                                                                               ------------    ------------

Minority interest                                                                 1,837,730       1,870,135
                                                                               ------------    ------------

Commitments and contingencies (Note 10)

Partners' capital (deficit):
  Limited partners (100,000 BACs authorized; 45,844 issued
    and outstanding) (Note 1)                                                    13,542,999      16,516,156
  General partner                                                                  (274,854)       (244,822)
                                                                               ------------    ------------

Total partners' capital (deficit)                                                13,268,145      16,271,334
                                                                               ------------    ------------

Total liabilities and partners' capital (deficit)                              $ 66,020,451    $ 68,494,315
                                                                               ============    ============
</TABLE>
*  Reclassifed for comparative purposes.

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

                                       26
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                                 Years Ended March 31,
                                                       -----------------------------------------
                                                           2007           2006           2005
                                                       -----------    -----------    -----------
<S>                                                    <C>            <C>            <C>
Revenues
Rental income                                          $ 5,939,127    $ 5,876,579    $ 5,684,539
Other income                                               335,912        268,646        284,286
                                                       -----------    -----------    -----------

Total revenue                                            6,275,039      6,145,225      5,968,825
                                                       -----------    -----------    -----------

Expenses
General and administrative                               1,509,159      1,542,418      1,559,770
General and administrative-related parties (Note 8)        721,541        826,965        725,342
Repairs and maintenance                                  1,154,214      1,020,706      1,115,171
Operating and other                                        942,599        885,608        825,660
Taxes                                                      203,852        167,482        166,518
Insurance                                                  362,642        382,764        395,593
Interest                                                 1,889,711      1,946,664      1,998,814
Depreciation and amortization                            2,511,355      2,433,019      2,448,003
                                                       -----------    -----------    -----------

Total expenses                                           9,295,073      9,205,626      9,234,871
                                                       -----------    -----------    -----------

Loss before minority interest                           (3,020,034)    (3,060,401)    (3,266,046)

Minority interest in loss of subsidiary partnerships        16,845         14,225         29,336
                                                       -----------    -----------    -----------


Net loss                                               $(3,003,189)   $(3,046,176)   $(3,236,710)
                                                       ===========    ===========    ===========


Net loss - limited partners                            $(2,973,157)   $(3,015,714)   $(3,204,343)
                                                       ===========    ===========    ===========

Number of BACs outstanding                                  45,844         45,844         45,844
                                                       ===========    ===========    ===========

Net loss per weighted average BAC                      $    (64.85)   $    (65.78)   $    (69.90)
                                                       ===========    ===========    ===========
</TABLE>

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

                                       27
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
        CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
                    YEARS ENDED MARCH 31, 2007, 2006 and 2005
<TABLE>
<CAPTION>
                                                                 Limited         General
                                                   Total         Partners        Partners
                                               ------------    ------------    ------------
<S>                                            <C>             <C>             <C>
Partners' capital (deficit) - April 1, 2004    $ 22,554,220    $ 22,736,212    $   (181,992)

Net loss                                         (3,236,710)     (3,204,342)        (32,368)
                                               ------------    ------------    ------------
                                                 19,317,510      19,531,870        (214,360)
Partners' capital (deficit) - March 31, 2005

Net Loss                                         (3,046,176)     (3,015,714)        (30,462)
                                               ------------    ------------    ------------
                                                 16,271,334      16,516,156        (244,822)
Partners' capital (deficit) - March 31, 2006

Net Loss                                         (3,003,189)     (2,973,157)        (30,032)
                                               ------------    ------------    ------------

Partners' capital (deficit) - March 31, 2007   $ 13,268,145    $ 13,542,999    $   (274,854)
                                               ============    ============    ============
</TABLE>

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

                                       28
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                      Years Ended March 31,
                                                            -----------------------------------------
                                                                2007          2006*          2005*
                                                            -----------    -----------    -----------
<S>                                                         <C>            <C>            <C>
Cash flows from operating activities:
Net loss                                                    $(3,003,189)   $(3,046,176)   $(3,236,710)
                                                            -----------    -----------    -----------
Adjustments to reconcile net loss to net cash provided by
  operating activities:
Depreciation and amortization                                 2,511,355      2,433,019      2,448,003
Minority interest in loss of subsidiary partnerships            (16,845)       (14,225)       (29,336)
(Increase) decrease in cash held in escrow                      (59,537)        71,578         54,158
(Increase) decrease in other assets                             (56,171)       (28,780)        15,857
Increase in accounts payable and other liabilities              684,423        600,203        835,700
Increase in due to local general partners and affiliates         25,291            269         17,379
Decrease in due to local general partners and affiliates        (16,984)       (58,753)             0
Increase in due to general partner and affiliates               466,147        581,844        536,175
                                                            -----------    -----------    -----------
Total adjustments                                             3,537,679      3,585,155      3,877,936
                                                            -----------    -----------    -----------

Net cash provided by operating activities                       534,490        538,979        641,226
                                                            -----------    -----------    -----------

Cash flows from investing activities:
Disposal (acquisition) of property and equipment                 70,029        (82,448)       (37,758)
(Increase) decrease in cash held in escrow                     (109,401)           227        (64,456)
(Decrease) increase in due to local general partners
  and affiliates                                                (98,996)        31,938       (299,624)
Decrease (increase) in due from local general partners
  and affiliates                                                 19,357        (54,000)       (75,433)
                                                            -----------    -----------    -----------

Net cash used in investing activities                          (118,981)      (168,159)      (477,271)
                                                            -----------    -----------    -----------

Cash flows from financing activities:
Proceeds from mortgage notes                                          0              0        240,694
Repayments of mortgage notes                                   (498,181)      (548,628)      (454,265)
Increase in deferred costs                                      (12,222)             0         (5,383)
Decrease in capitalization of consolidated subsidiaries
  attributable to minority interest                             (15,560)             0        (11,967)
                                                            -----------    -----------    -----------

Net cash used in financing activities                          (525,963)      (548,628)      (230,921)
                                                            -----------    -----------    -----------

Net decrease in cash and cash equivalents                      (110,454)      (177,808)       (66,966)

Cash and cash equivalents at beginning of year                1,486,123      1,663,931      1,730,897
                                                            -----------    -----------    -----------

Cash and cash equivalents at end of year                    $ 1,375,669    $ 1,486,123    $ 1,663,931
                                                            ===========    ===========    ===========

Supplemental disclosure of cash flow information:
Cash paid during the year for interest                      $ 1,187,823    $ 1,391,100    $ 1,081,553
                                                            ===========    ===========    ===========
</TABLE>
* Reclassified for comparative purposes.

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

                                       29
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2007


NOTE 1 - General

Independence  Tax Credit  Plus L.P.  IV (a Delaware  limited  partnership)  (the
"Partnership")  was  organized  on  February  22,  1995 and  commenced  a public
offering on July 6, 1995.  The  general  partner of the  Partnership  is Related
Independence   L.L.C.,  a  Delaware  limited  liability  company  (the  "General
Partner").

On November 17, 2003, Centerline Holding Company ("Centerline")  (formerly known
as CharterMac)  acquired  Centerline  Affordable  Housing Advisors LLC (formerly
known as CharterMac  Capital LLC), which is the parent of Centerline Manager LLC
(formerly know as RCC Manager LLC), the managing member of the General  Partner.
Pursuant to the acquisition,  Centerline acquired  controlling  interests in the
General  Partner.  This  acquisition  did  not  affect  the  Partnership  or its
day-to-day operations,  as the majority of the General Partner's management team
remained unchanged.

On March 15, 2007,  Centerline  announced  the  retirement  of Alan P. Hirmes as
Chief Financial Officer of Centerline. Upon his retirement, he also retired from
his  position  as Chief  Executive  Officer and Chief  Financial  Officer of the
General  Partner.  Centerline's  Board of Trustees named Robert L. Levy as Chief
Financial  Officer and Andrew J. Weil Executive as Chief Officer to replace Alan
P. Hirmes.

The Partnership's  business is primarily to invest in other partnerships ("Local
Partnerships,"  "subsidiaries"  or "subsidiary  partnerships")  owning leveraged
apartment  complexes  ("Apartment  Complexes" or "Properties") that are eligible
for the low-income  housing tax credit ("Tax Credit")  enacted in the Tax Reform
Act of 1986, some of which may also be eligible for the historic  rehabilitation
tax credit.  Qualified Beneficial  Assignment  Certificates ("BACs") holders are
entitled  to Tax Credits  over the period of the  Partnership's  entitlement  to
claim Tax  Credits  (for each  Property,  generally  ten years  from the date of
investment or, if later, the date the Property is placed in service; referred to
herein as the "Credit Period") with respect to each Apartment Complex.

As of March 31, 2007, the Partnership has acquired limited partnership interests
in fourteen subsidiary  partnerships,  all of which have been consolidated.  The
Partnership  does not  anticipate  acquiring  limited  partnership  interests in
additional  subsidiary  partnerships.  The  Partnership's  investments  in Local
Partnerships  represent  from  98.99%  to  99.89%  interests,   except  for  one
investment which is a 58.12% interest.

The  Partnership  was  authorized  to  issue a total of  100,000  ($100,000,000)
Beneficial Assignment  Certificates ("BACs") which have been registered with the
Securities and Exchange  Commission for sale to the public.  Each BAC represents
all of the economic and virtually all of the ownership rights  attributable to a
limited partnership interest.  The solicitation for the subscription of BACs was
terminated as of May 22, 1996 and the final closing occurred on August 15, 1996.
The Partnership had raised a total of $45,844,000 representing 45,844 BACs.


NOTE 2 - Summary of Significant Accounting Policies

a)  Basis of Accounting

For financial  reporting purposes,  the Partnership's  fiscal year ends on March
31. All  subsidiaries  have fiscal  years ending  December  31.  Accounts of the
subsidiaries  have been adjusted for  intercompany  transactions  from January 1
through March 31. The Partnership's  fiscal year ends March 31 in order to allow
adequate  time for the  subsidiaries'  financial  statements  to be prepared and
consolidated.  The books and records of the  Partnership  are  maintained on the
accrual  basis  of  accounting,  in  accordance  with  U.S.  generally  accepted
accounting principles ("GAAP").

b)  Basis of Consolidation

The consolidated  financial  statements  include the accounts of the Partnership
and fourteen  subsidiary  partnerships  for the years ended March 31, 2007, 2006
and 2005,  respectively,  in which the Partnership is a limited partner. Through
the rights of the Partnership and/or an affiliate of the General Partner,  which
affiliate has a contractual  obligation to act on behalf of the Partnership,  to
remove the general partner of the subsidiary  local  partnerships and to approve
certain  major  operating  and  financial  decisions,   the  Partnership  has  a
controlling financial interest in the subsidiary partnerships.  All intercompany
accounts and transactions with the subsidiary  partnerships have been eliminated
in consolidation.

Increases  (decreases) in the  capitalization  of the consolidated  subsidiaries
attributable to minority  interests arise from cash  contributions from and cash
distributions to the minority interest partners.

Losses  attributable to minority interests which exceed the minority  interests'
investment  in a subsidiary  have been charged to the  Partnership.  Such losses
aggregated  approximately $11,000,  $10,000 and $8,000 for the years ended March
31, 2007,  2006 and 2005,  respectively.  The  Partnership's  investment in each
subsidiary  is  equal  to the  respective  subsidiary's  partners'  equity  less
minority interest capital, if any. In consolidation,  all subsidiary partnership
losses are  included  in the  Partnership's  capital  account  except for losses
allocated to minority interest capital.

c)  Cash and Cash Equivalents

Cash and cash  equivalents  include cash on hand, cash in banks, and investments
in short-term highly liquid  investments  purchased with original  maturities of
three months or less.

                                       30
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2007


d)  Property and Equipment

Property and  equipment  to be held and used are carried at cost which  includes
the purchase price, acquisition fees and expenses,  construction period interest
and any other costs incurred in acquiring the  properties.  The cost of property
and equipment is depreciated over their estimated useful lives using accelerated
and straight-line methods.  Expenditures for repairs and maintenance are charged
to expense as incurred;  major renewals and betterments are capitalized.  At the
time property and  equipment are retired or otherwise  disposed of, the cost and
accumulated   depreciation  are  eliminated  from  the  assets  and  accumulated
depreciation accounts and the profit or loss on such disposition is reflected in
earnings.  The  Partnership  complies  with  Statement of  Financial  Accounting
Standards  ("SFAS")  No. 144  "Accounting  for the  Impairment  or  Disposal  of
Long-Lived  Assets".  A loss on impairment of assets is recorded when management
estimates amounts recoverable through future operations and sale of the property
on an  undiscounted  basis are below  depreciated  cost.  At that time  property
investments  themselves  are reduced to estimated  fair value  (generally  using
estimated  future  discounted net cash flows) when the property is considered to
be impaired and the depreciated cost exceeds estimated fair value.

At the time management  commits to a plan to dispose of assets,  said assets are
adjusted to the lower of carrying amount or fair value less costs to sell. These
assets  are  classified  as  property  and  equipment-held  for sale and are not
depreciated.  There are no assets classified as property and  equipment-held for
sale through March 31, 2007.

Through March 31, 2007, the  Partnership has not recorded any loss on impairment
of assets or reductions to estimated fair value.

e)  Revenue Recognition

Rental  income is earned  under  standard  residential  operating  leases and is
typically  due the first day of each month,  but can vary by property due to the
terms of the tenant leases.  Rental income is recognized when earned and charged
to tenants' accounts receivable if not received by the due date. Rental payments
received in advance of the due date are deferred until earned.  Rental subsidies
are recognized as rental income during the month in which it is earned.

Other  revenues are  recorded  when earned and consist of the  following  items:
Interest  income  earned on cash and cash  equivalent  balances and cash held in
escrow balances,  income from forfeited security deposits, late charges, laundry
and vending income and other rental related items.

Other revenues  include the following  amounts at both the Partnership and Local
Partnership level:
<TABLE>
<CAPTION>
                              Years Ended March 31,
                         ------------------------------
                           2007       2006       2005
                         --------   --------   --------
<S>                      <C>        <C>        <C>
Interest                 $ 98,315   $ 68,739   $ 34,738
Other                     237,597    199,907    249,548
                         --------   --------   --------

   Total other revenue   $335,912   $268,646   $284,286
                         ========   ========   ========
</TABLE>


f)  Income Taxes

The  Partnership  is not  required to provide  for, or pay,  any federal  income
taxes.  Net income or loss generated by the Partnership is passed through to the
partners and is required to be reported by them. The  Partnership may be subject
to state and local taxes in jurisdictions  in which it operates.  For income tax
purposes, the Partnership has a fiscal year ending December 31 (Note 9).

In prior years,  the  Partnership  relied on the 5% safe harbor  established  by
Internal Revenue Service ("IRS")  regulations to avoid being  characterized as a
"publicly-traded  partnership"  that  is  taxed  as a  corporation.  The 5% safe
harbor,  however,  expired and is no longer  available  as of December 31, 2005.
Accordingly,  the  Partnership  now relies on a 2% safe  harbor  established  by
another  IRS  regulation  to avoid  being  characterized  as a  "publicly-traded
partnership" that is taxed as a corporation.

g)  Mortgage Financing and Offering Costs

Costs incurred in connection  with obtaining  permanent  mortgage  financing are
capitalized and amortized over the lives of the related  mortgage  notes.  Costs
incurred to sell BACs,  including brokerage fees and the nonaccountable  expense
allowance, are considered selling and offering expenses. These costs are charged
directly to limited partners' capital.

h)  Deferred Costs

Deferred costs and fees incurred in connection with the purchase of interests in
certain subsidiary  partnerships have been capitalized as property costs and are
being amortized over the lives of the related properties.

                                       31
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2007


i)  Loss Contingencies

The  Partnership   records  loss  contingencies  as  a  charge  to  income  when
information  becomes available which indicates that it is probable that an asset
has  been  impaired  or a  liability  has  been  incurred  as of the date of the
consolidated  financial  statements  and the  amount  of loss can be  reasonably
estimated.

j)  Use of Estimates

The  preparation of  consolidated  financial  statements in conformity with GAAP
requires  management  to make  estimates  and  assumptions  that affect  certain
reported amounts and disclosures.  Accordingly, actual results could differ from
those estimates.


NOTE 3 - Fair Value of Financial Instruments

The following  methods and  assumptions  were used to estimate the fair value of
each class of financial instruments for which it is practicable to estimate that
value:

Cash and Cash Equivalents and Cash Held in Escrow
-------------------------------------------------
The carrying amount  approximates  fair value due to the short-term  maturity of
the instruments.

Mortgage Notes Payable
----------------------
The fair value of mortgage notes payable is estimated, where practicable,  based
on the borrowing rate currently available for similar loans.

The estimated  fair values of the  Partnership's  mortgage  notes payable are as
follows:
<TABLE>
<CAPTION>
                                                March 31, 2007             March 31, 2006
                                          -------------------------   -------------------------
                                           Carrying                    Carrying
                                            Amount      Fair Value      Amount      Fair Value
                                          -----------   -----------   -----------   -----------
<S>                                       <C>           <C>           <C>           <C>
Mortgage notes payable for which it is:
Practicable to estimate fair value        $26,267,763   $27,213,707   $26,749,817   $27,444,099
Not practicable                           $ 8,783,989           (a)   $ 8,800,116           (a)
</TABLE>


(a)  Management  believes it is not  practicable  to estimate  the fair value of
certain   mortgage  notes  payable  because   mortgage   programs  with  similar
characteristics   are  not  currently   available  to  each  of  the  subsidiary
partnerships.

The carrying amount of other assets and liabilities reported on the consolidated
balance sheets that require such disclosure approximates fair value.

Due to General  Partner and  Affiliates  and Due to Local  General  Partners and
--------------------------------------------------------------------------------
Affiliates
----------
Management  believes it is not  practical  to estimate  the fair value of due to
general partner and affiliates and due to local general  partners and affiliates
because market information on such unique loans are not currently available.


NOTE 4 - Property and Equipment

The components of property and equipment and their estimated useful lives are as
follows:
<TABLE>
<CAPTION>
                                           March 31,                Estimated
                                  -----------------------------    Useful Lives
                                      2007            2006           (Years)
                                  ------------    ------------     -----------
<S>                               <C>             <C>                  <C>
Land                              $  3,307,496    $  3,307,496
Building and improvements           76,880,650      76,978,322         27.5
Furniture and fixtures               1,213,232       1,185,589         5-7
                                  ------------    ------------

                                    81,401,378      81,471,407
Less:  Accumulated depreciation    (21,471,763)     (19,086,20)
                                  ------------    ------------

                                  $ 59,929,615    $ 62,385,207
                                  ============    ============
</TABLE>

                                       32
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2007



Included in property and equipment at March 31, 2007 and 2006, was $2,750,640 of
acquisition  fees  paid to the  General  Partner  and  $708,031  of third  party
acquisition  expenses.  In addition, as of March 31, 2007 and 2006, building and
improvements   includes  $343,161  of  capitalized  interest.  No  interest  was
capitalized during the years ended March 31, 2007, 2006 and 2005.

In  connection  with  the  rehabilitation  of  the  properties,  the  subsidiary
partnerships  have incurred  developer's fees of $4,235,495 to the local general
partners and affiliates as of both March 31, 2007 and 2006.  Such fees have been
included in the cost of property and equipment.

Depreciation  expense for the years ended March 31, 2007, 2006 and 2005 amounted
to $2,385,563, $2,377,963 and $2,390,752, respectively.


NOTE 5 - Cash Held in Escrow

Cash held in escrow consists of the following:
<TABLE>
<CAPTION>
                                                           March 31,
                                                 -----------------------------
                                                     2007             2006
                                                 ------------     ------------
<S>                                              <C>              <C>
Purchase price payments*                         $    499,573     $    539,048
Real estate taxes, insurance and other                975,067          929,090
Reserve for replacement                             1,529,714        1,380,838
Tenant security deposits                              396,014          382,454
                                                 ------------     ------------

                                                 $  3,400,368     $  3,231,430
                                                 ============     ============
</TABLE>


*    Represents  amounts  to be paid to seller  upon  meeting  specified  rental
     achievement criteria.


NOTE 6 - Deferred Costs

The  components  of  deferred  costs and their  periods of  amortization  are as
follows:
<TABLE>
<CAPTION>
                                               March 31,
                                     ----------------------------
                                         2007            2006             Period
                                     ------------    ------------    -----------------
<S>                                  <C>             <C>             <C>
Financing costs                      $  1,006,807    $  1,006,807    2 through 45 years
Other deferred costs                      189,914         177,692
                                     ------------    ------------
                                        1,196,721       1,184,499
Less:  Accumulated amortization          (710,378)       (584,586)
                                     ------------    ------------

                                     $    486,343    $    599,913
                                     ============    ============
</TABLE>


Amortization  expense for the years ended March 31, 2007, 2006 and 2005 amounted
to $125,792, $55,056 and $57,251, respectively.  During the year ended March 31,
2007,  deferred  costs of $65,922 were  written off due to a loan  restructuring
(see Note 7).


NOTE 7 - Mortgage Loans Payable

The  mortgage   loans  are  payable  in  aggregate   monthly   installments   of
approximately  $119,000 including principal and interest with rates varying from
0% to 9.11% per annum and have  maturity  dates  ranging from 2008 through 2051.
The  loans  are  collateralized  by the land  and  buildings  of the  subsidiary
partnerships,  the  assignment  of certain  subsidiary  partnerships'  rents and
leases, and are without further recourse.


                                       33
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2007


Annual principal  payments on the permanent debt requirements for mortgage notes
payable for each of the next five calendar years and thereafter are as follows:
<TABLE>
<CAPTION>
Year Ending December 31,                   Amount
------------------------               ------------
<C>                                    <C>
2007                                   $    476,592
2008                                        566,557
2009                                        584,957
2010                                        556,817
2011                                        589,011
Thereafter                               32,277,818
                                       ------------

                                       $ 35,051,752
                                       ============
</TABLE>

The  mortgage  agreements  generally  require  monthly  deposits to  replacement
reserves and monthly  deposits to escrow accounts for real estate taxes,  hazard
and mortgage insurance and other expenses (Note 5).

Accrued interest payable amounted to approximately  $9,494,000 and $8,792,000 as
of March 31,  2007 and 2006,  respectively.  Interest  accrues  on all  mortgage
loans,  which include primary and secondary loans.  Certain secondary loans have
provisions  such that  interest is accrued but not payable  until a future date.
The  Partnership  anticipates  the payment of accrued  interest on the secondary
loans  (which  make up the  majority  of the  accrued  interest  payable  amount
indicated  in the  above  table  and  which  have  been  accumulating  since the
Partnership's  investment in the respective Local Partnership) will be made from
future refinancings or sales proceeds of the respective Local  Partnerships.  In
addition, each Local Partnership's mortgage notes are collateralized by the land
and  buildings of the  respective  Local  Partnership,  and are without  further
recourse to the  Partnership.  Accrued  interest payable is included in accounts
payable and other liabilities on the Consolidated Balance Sheets.

On or about June 1, 2006 GP Kanehoe Limited Partnership underwent a loan renewal
on the  underlying  financing  on the wrap note.  Upon the renewal it was deemed
appropriate that the remaining  unamortized  original loan fees in the amount of
$65,922 that were on the books as of June 1, 2006 be written off through current
year amortization. There were no costs associated with this renewal so there are
no new fees to amortize.

The outstanding  balance of the loan at renewal was $997,098 and the new balance
was the same. The renewed loan has an interest rate of 6.00% compared to the old
note rate of 7.25%.


NOTE 8 - Related Party Transactions

An affiliate  of the General  Partner has a .01%  interest as a special  limited
partner in each of the Local Partnerships.

Pursuant to the Partnership Agreement and the Local Partnership Agreements,  the
General  Partner and affiliate  receive their pro-rata share of profits,  losses
and tax credits.

A)  Guarantees

The Partnership had negotiated  Operating  Deficit Guaranty  Agreements with the
Local  Partnerships  whereby  the general  partners  of such Local  Partnerships
and/or their  affiliates have agreed to fund operating  deficits for a specified
period of time. The terms of the Operating Deficit Guaranty  Agreements vary for
each of these Local Partnerships, with maximum dollar amounts to be funded for a
specified  period of time,  generally three years,  commencing on the break-even
date. As of both March 31, 2007 and 2006, Operating Deficit Guarantees aggregate
approximately $1,897,000. As of both March 31, 2007 and 2006, $0 has been funded
under the  Operating  Deficit  Guaranty  Agreements.  Amounts  funded under such
agreements  will be treated as  non-interest  bearing loans,  which will be paid
only  out of 50% of  available  cash  flow  or out  of  available  net  sale  or
refinancing proceeds.

                                       34
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2007


B)  Related Party Expenses

Expenses  incurred to related  parties for the years ended March 31, 2007,  2006
and 2005 were as follows:
<TABLE>
<CAPTION>
                                                             Year Ended March 31,
                                                        ------------------------------
                                                          2007       2006       2005
                                                        --------   --------   --------
<S>                                                     <C>        <C>        <C>
Partnership management fees (a)                         $337,120   $337,120   $337,122
Expense reimbursements (b)                               121,372    228,697    145,390
Local administrative fees (d)                             63,000     76,000     60,000
                                                        --------   --------   --------

Total general and administrative - General Partner       521,492    641,817    542,512

Property  management  fees  incurred to affiliates of
  the subsidiary partnerships' general partners (c)      200,049    185,148    182,830
                                                        --------   --------   --------

Total general and administrative-related parties        $721,541   $826,965   $725,342
                                                        ========   ========   ========
</TABLE>

(a) The General  Partner is entitled to receive a  partnership  management  fee,
after payment of all Partnership expenses,  which together with the annual local
administrative  fees  will not  exceed a maximum  of 0.5% per annum of  invested
assets (as defined in the Partnership Agreement),  for administering the affairs
of  the  Partnership.  Subject  to the  foregoing  limitation,  the  partnership
management fee will be determined by the General  Partner in its sole discretion
based  upon its  review of the  Partnership's  investments.  Unpaid  partnership
management  fees for any  year  will be  accrued  without  interest  and will be
payable only to the extent of  available  funds after the  Partnership  has made
distributions to the limited  partners of sale or refinancing  proceeds equal to
their original capital  contributions plus a 10% priority return thereon (to the
extent not previously paid out of cash flow).  Partnership  management fees owed
to the General Partner amounting to approximately $2,641,000 and $2,304,000 were
accrued and unpaid as of March 31, 2007 and 2006, respectively.

(b) The Partnership reimburses the General Partner and its affiliates for actual
Partnership   operating  expenses  incurred  by  the  General  Partner  and  its
affiliates on the  Partnership's  behalf.  The amount of reimbursement  from the
Partnership is limited by the provisions of the Partnership  Agreement.  Another
affiliate of the General Partner  performs asset monitoring for the Partnership.
These   services   include  site  visits  and   evaluations  of  the  subsidiary
partnerships' performance.

(c) Property  management  fees  incurred by the Local  Partnerships  amounted to
$394,964,  $388,853 and  $384,730  for the years ended March 31, 2007,  2006 and
2005, respectively.  Of these fees, $200,049, $185,148 and $182,830 was incurred
to affiliates of the subsidiary partnerships' general partners.

(d)  Independence  SLP IV L.P.,  a special  limited  partner  of the  subsidiary
partnerships,  is entitled to receive a local administrative fee of up to $5,000
per year from each subsidiary partnership.

C) Due to/from Local General Partners and Affiliates

Due to local general partners and affiliates consists of the following:
<TABLE>
<CAPTION>
                                           March 31,
                                  --------------------------
                                      2007           2006
                                  -----------    -----------
<S>                               <C>            <C>
Development fee payable           $ 1,617,304    $ 1,766,263
Construction costs payable             50,000         50,000
Operating advances                     85,993         36,000
Management and other fees              21,766         13,459
                                  -----------    -----------

                                  $ 1,775,063    $ 1,865,722
                                  ===========    ===========
</TABLE>

* Reclassified for comparative purposes.

Due from local general partners and affiliates consists of the following:
<TABLE>
<CAPTION>
                                           March 31,
                                  --------------------------
                                      2007           2006
                                  -----------    -----------
<S>                               <C>            <C>
General partner loan receivable   $    231,589   $   250,946
                                  ============   ===========
</TABLE>

* Reclassified for comparative purposes.

                                       35
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2007



NOTE 9 - Income Taxes

A reconciliation of the consolidated  financial statement net loss to the income
tax loss for the Partnership and its consolidated subsidiaries follows:
<TABLE>
<CAPTION>
                                                                        Year Ended December 31,
                                                               -----------------------------------------
                                                                   2006           2005           2004
                                                               -----------    -----------    -----------
<S>                                                            <C>            <C>            <C>
Financial statement net loss                                   $(3,003,189)   $(3,046,176)   $(3,236,710)

Differences between depreciation and amortization expense
  for financial reporting purposes and income tax purposes        (198,983)      (333,774)      (414,255)

Differences  resulting from parent company having a
  different fiscal year for income tax and financial
  reporting purposes                                                (6,712)        15,040        (11,934)

Tax exempt interest income                                         (42,169)       (24,764)       (10,841)

Other, including accruals for financial reporting
  purposes not deductible for income tax purposes until paid       338,099         20,349         37,075
                                                               -----------    -----------    -----------

Net loss per income tax returns                                $(2,912,954)   $(3,369,325)   $(3,636,665)
                                                               ===========    ===========    ===========
</TABLE>


NOTE 10 - Commitments and Contingencies

a)  Uninsured Cash and Cash Equivalents

The  Partnership  and its subsidiary  partnerships  maintain their cash and cash
equivalents  in various  banks.  The  accounts  at each bank are  insured by the
Federal Deposit  Insurance  Corporation  for up to $100,000.  At March 31, 2007,
uninsured cash and cash equivalents at various banking institutions approximated
$1,842,000.

b)  Leases

One subsidiary  partnership is leasing the land on which the Project is located,
in Hawaii,  for a term of 65 years  starting on July 14,  1982.  At December 31,
2006, the subsidiary partnership is obligated to pay rent of $1 per annum.

c)  Other

The  Partnership  is subject to the risks  incident to potential  losses arising
from the  management  and  ownership of improved  real estate and poor  economic
conditions.

The  Partnership  and BACs  holders  will begin to  recognize  Tax Credits  with
respect to a property when the Credit Period for such  property  commences.  The
tax credit period  generally  runs for ten years from the date it commenced with
respect  to  each  eligible  property.  Because  of the  time  required  for the
acquisition,  completion  and rent-up of  Properties,  it is  expected  that the
amount of Tax Credits per BAC will gradually increase over the first three years
of the Partnership.  Tax Credits not recognized in the first three years will be
recognized in the 11th through 13th years. The Partnership generated $5,058,701,
$5,292,899 and $5,356,758 of Tax Credits during each of the 2006,  2005 and 2004
tax years, respectively. The Tax Credits expire at various times through 2010.

                                       36
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2007


NOTE 11 - Selected Quarterly Financial Data (Unaudited)
<TABLE>
<CAPTION>
                                                                             Quarter Ended
                                                      -----------------------------------------------------------

                                                        June 30,      September 30,   December 31,    March 31,
                    OPERATIONS                            2006            2006           2006            2007
--------------------------------------------------    -------------   ------------   -------------   ------------
<S>                                                   <C>             <C>            <C>             <C>
Revenues                                              $   1,570,223   $  1,577,964   $   1,568,404   $  1,558,448

Operating expenses                                       (2,328,062)    (2,304,387)     (2,248,952)    (2,413,672)
                                                      -------------   ------------   -------------   ------------

Loss before minority interest                              (757,839)      (726,423)       (680,548)      (855,224)

Minority interest in loss of subsidiaries                     9,551            198             206          6,890
                                                      -------------   ------------   -------------   ------------

Net loss                                              $    (748,288)      (726,225)       (680,342)      (848,334)
                                                      =============   ============   =============   ============

Net loss per weighted average BAC                     $      (16.16)        (15.68)         (14.69)        (18.32)
                                                      =============   ============   =============   ============
<CAPTION>

                                                                             Quarter Ended
                                                      -----------------------------------------------------------

                                                        June 30,      September 30,   December 31,    March 31,
                    OPERATIONS                            2005            2005           2005            2006
--------------------------------------------------    -------------   ------------   -------------   ------------
<S>                                                   <C>             <C>            <C>             <C>
Revenues                                              $   1,559,193   $  1,529,807   $   1,571,550   $  1,484,675

Operating expenses                                       (2,282,476)    (2,284,522)     (2,342,492)    (2,296,136)
                                                      -------------   ------------   -------------   ------------

Loss before minority interest                              (723,283)      (754,715)       (770,942)      (811,461)

Minority interest in loss (income) of subsidiaries            7,716          9,623           6,070         (9,184)
                                                      -------------   ------------   -------------   ------------

Net loss                                              $    (715,567)  $   (745,092)  $    (764,872)  $   (820,645)
                                                      =============   ============   =============   ============

Net loss per weighted average BAC                     $      (15.45)  $     (16.09)  $      (16.52)  $     (17.72)
                                                      =============   ============   =============   ============
</TABLE>


NOTE 12 - Commitments and Contingencies

BX-8A Team Associates, L.P. ("Bryant")
-------------------------------------

The  financial  statements  of Bryant have been  prepared  assuming that it will
continue  as a going  concern.  Bryant  has  experienced  recurring  losses  and
insufficient  cash flow to pay  operating  costs.  Bryant's  ability to meet its
obligations  is  dependent  upon  its  ability  to  generate  operating  income.
Management's  plan to improve the  financial  operations of Bryant is to control
operating costs and improve rental collections.  Although not required to do so,
the general partners have committed to fund deficits if needed.

                                       37
<PAGE>

Item  9.  Changes  in and  Disagreements  with  Accountants  on  Accounting  and
Financial Disclosure

None

Item 9A.  Controls and Procedures

(a)  EVALUATION  OF  DISCLOSURE  CONTROLS AND  PROCEDURES.  The Chief  Executive
Officer and Chief Financial Officer of Related  Independence  L.L.C, the general
partner of the Partnership, has evaluated the effectiveness of the Partnership's
disclosure  controls and procedures (as such term is defined in Rules  13a-15(e)
and 15d-15(e) under the Securities  Exchange Act of 1934, as amended  ("Exchange
Act") as of the end of the  period  covered by this  report.  In  designing  and
evaluating our disclosure  controls and  procedures,  our management  recognized
that any controls and procedures,  no matter how well designed and operated, can
provide  only  reasonable  assurance  of  achieving  their  objectives,  and our
management  necessarily  applied its  judgment in  evaluating  the  cost-benefit
relationship of possible controls and procedures.  Based on this evaluation, the
Chief  Executive  Officer and Chief  Financial  Officer of Related  Independence
L.L.C, the general partner of the Partnership,  concluded that, as of the period
covered by this report, our disclosure controls and procedures were (1) designed
to ensure that material  information  relating to us, including our consolidated
subsidiaries,  is made known to the Chief Executive  Officer and Chief Financial
Officer of Related Independence L.L.C, the general partner of the Partnership by
others  within  those  entities,  particularly  during  the period in which this
report was being  prepared and (2)  effective,  in that they provide  reasonable
assurance that information required to be disclosed by us in the reports we file
or submit under the Securities Exchange Act is recorded,  processed,  summarized
and reported within the time periods specified in the SEC's rules and forms.

(b) Changes in INTERNAL CONTROLS OVER FINANCIAL REPORTING. During the year ended
March 31, 2007, there were no changes in the Partnership's internal control over
financial reporting that have materially  affected,  or are reasonably likely to
materially affect, the Partnership's internal control over financial reporting.

Item 9B.  Other Information

Not applicable.

                                       38
<PAGE>

                                    PART III


Item 10.  Directors and Executive Officers and Corporate Governance

The  Partnership  has no  directors  or executive  officers.  The  Partnership's
affairs are managed and controlled by Related  Independence  LLC ("RILLC"),  the
General  Partner.  The  Partnership  has not  adopted a separate  code of ethics
because the Partnership  has no directors or executive  officers.  However,  the
parent company of CharterMac Capital LLC ("CharterMac  Capital") (formerly known
as Related Capital Company LLC), which controls the General Partner, has adopted
a code of ethics (see http://www.centerline.com).

On November 17, 2003, Centerline Holding Company ("Centerline")  (formerly known
as CharterMac)  acquired  Centerline  Affordable  Housing Advisors LLC (formerly
known as CharterMac  Capital LLC), which is the parent of Centerline Manager LLC
(formerly know as RCC Manager LLC), the managing member of the General  Partner.
Pursuant to the acquisition,  Centerline acquired  controlling  interests in the
General  Partner.  This  acquisition  did  not  affect  the  Partnership  or its
day-to-day operations,  as the majority of the General Partner's management team
remained unchanged.

On March 15, 2007,  Centerline  announced  the  retirement  of Alan P. Hirmes as
Chief Financial Officer of Centerline. Upon his retirement, he also retired from
his  position  as Chief  Executive  Officer and Chief  Financial  Officer of the
General  Partner.  Centerline's  Board of Trustees named Robert L. Levy as Chief
Financial  Officer and Andrew J. Weil as Chief Executive Officer to replace Alan
P. Hirmes.

Certain  information  concerning  the  executive  officers and  directors of the
General Partner is set forth below.

Name                                          Position
-----------------                             ------------------------------

Robert L. Levy                                Chief Financial Officer

                                              President and Chief Executive
Andrew J. Weil                                Officer

Mark D. Schnitzer                             Senior Vice President

Glenn F. Hopps                                Treasurer


ROBERT L. LEVY, 41, is the Chief  Financial  Officer of Centerline.  Mr. Levy is
also the  Chief  Financial  Officer  of  American  Mortgage  Acceptance  Company
("AMAC"), a publicly traded real estate investment trust managed by an affiliate
of  Centerline.  Mr. Levy is responsible  for overseeing the Corporate  Finance,
Capital Markets,  Accounting,  Budgeting, Tax and Treasury departments. Mr. Levy
joined  Centerline's  predecessor in November of 2001 as the Director of Capital
Markets.  From 1998  through  2001,  Mr. Levy was a Vice  President  in the Real
Estate Equity Research and Investment Banking Departments at Robertson Stephens,
an  investment  banking  firm in San  Francisco.  Prior  to 1998,  Mr.  Levy was
employed by Prudential  Securities in the Real Estate Equity  Research Group and
at Prudential  Realty Group,  the real estate  investment  arm of the Prudential
Insurance Company.  He received his Masters in Business  Administration from the
Leonard N. Stern School of Business at New York  University  and his Bachelor of
Arts from Northwestern University.

ANDREW J. WEIL, 36, is an Executive Managing Director of Centerline,  and is the
Head of the Affordable Housing Group. Mr. Weil is responsible for overseeing the
day to day operations of the Affordable Housing Group, including the acquisition
of  properties  with  Low-Income  Housing Tax Credits  and the  origination  and
structuring of institutional funds. Prior to joining Centerline's predecessor in
January  1994,  Mr.  Weil was a Financial  Analyst  for the  Heights  Management
Company,  where he  specialized  in the  analysis of potential  investments  and
property management. Mr. Weil received a Bachelor of Science degree in Economics
with a  concentration  in Finance from the Wharton  School of the  University of
Pennsylvania.

MARC D. SCHNITZER,  46, is a Senior Vice President of the General Partner. He is
responsible  both for financial  restructurings  of real estate  properties  and
directing   Centerline   Affordable   Housing  Advisors  LLC's  acquisitions  of
properties  generating Housing Tax Credits.  Mr. Schnitzer received a Masters of
Business   Administration   from  The  Wharton   School  of  the  University  of
Pennsylvania  in December  1987 before  joining  Centerline  Affordable  Housing
Advisors  LLC in January  1988.  From 1983 to January  1986,  he was a financial
analyst for the First Boston  Corporation in New York. Mr.  Schnitzer  graduated
summa cum laude with a Bachelor of Science in Business  Administration  from the
School of  Management  at Boston  University  in May 1983.  In March  2006,  Mr.
Schnitzer was appointed Chief Executive Officer and President of CharterMac. Mr.
Schnitzer also serves on the Board of Trustees of Centerline.

GLENN F. HOPPS,  44, is  Treasurer  of the General  Partner.  Mr.  Hopps  joined
Centerline  Affordable  Housing Advisors LLC in December 1990, and prior to that
date  was  employed  by  Marks  Shron  &  Company  and  Weissbarth,  Altman  and
Michaelson,  Certified  Public  Accountants.  Mr. Hopps  graduated from New York
State University at Albany with a Bachelor of Science Degree in Accounting.

Item 11. Executive Compensation

The  Partnership has no officers or directors.  The Partnership  does not pay or
accrue any fees,  salaries or other forms of compensation to members or officers
of the  General  Partner  for their  services.  However,  under the terms of the
Partnership  Agreement,  the Partnership  has entered into certain  arrangements
with the General Partner and its affiliates,  which provide for  compensation to
be paid to the General Partner and its  affiliates.  Such  arrangements  include
(but are not limited to)  agreements  to pay  nonrecurring  acquisition  fees, a
nonaccountable   acquisition   expense   allowance,   an   accountable   expense
reimbursement  and  subordinated  disposition fees to the General Partner and/or
its affiliates.  In addition,  the General Partner is entitled to a subordinated
interest in cash from sales or refinancings and a 1% interest in net income, net
loss,  distributions  of adjusted  cash from  operations  and cash from sales or
refinancings.  Certain  members  and  officers of the  General  Partner  receive
compensation from the General Partner and its affiliates for services  performed

                                       39
<PAGE>

for various  affiliated  entities which may include  services  performed for the
Partnership.  The maximum annual partnership  management fee paid to the General
Partner  is 0.5% of  invested  assets.  See  Note 8 in Item 8  above,  which  is
incorporated herein by reference.

Tabular information concerning salaries, bonuses and other types of compensation
payable to executive  officers has not been included in this annual  report.  As
noted  above,  the  Partnership  has  no  executive  officers.   The  levels  of
compensation  payable to the General Partner and/or its affiliates is limited by
the terms of the Partnership  Agreement and may not be increased  therefrom on a
discretionary basis.

Item 12.  Security  Ownership of Certain  Beneficial  Owners and  Management and
Related Stockholder Matters
<TABLE>
<CAPTION>
                         Name and address of           Amount and Nature of         Percentage
  Title of Class        Beneficial Ownership           Beneficial Ownership          of Class
-------------------  ---------------------------   -------------------------------  -----------
<S>                  <C>                           <C>                                 <C>
General Partnership  Related Independence L.L.C.   $1,000 capital contribution  -      100%
 Interest in the     625 Madison Avenue            directly owned
 Partnership         New York, NY  10022
</TABLE>


Independence  SLP IV L.P., a limited  partnership  whose general  partner is the
General Partner of the Partnership and which acts as the special limited partner
of each Local  Partnership,  holds a .01%  limited  partnership  interest in the
Local  Partnerships.   See  Note  8  in  Item  8  above,  which  information  is
incorporated herein by reference thereto.

Except  as set  forth  below no  person  is known by the  Partnership  to be the
beneficial owner of more than five percent of the Limited Partnership  Interests
and/or BACs; and neither the General  Partner nor any director or officer of the
General Partner beneficially owns any Limited Partnership Interests or BACs. The
following table sets forth the number of BACs  beneficially  owned as of May 11,
2007 by (i) each BACs holder known to the  Partnership to be a beneficial  owner
of more than 5% of the BACs,  (ii) each  director and  executive  officer of the
General  Partner of RCMP and (iii) the directors  and executive  officers of the
General Partners of RCMP as a group.  Unless otherwise noted, all BACs are owned
directly with sole voting and dispositive powers.
<TABLE>
<CAPTION>
                                   Amount and Nature of       Percentage
  Name of Beneficial Owner (1)     Beneficial Ownership        of Class
--------------------------------   --------------------   -------------------

<S>                                    <C>                      <C>
Lehigh Tax Credit Partners, Inc.       2,868.06(2)              6.3%
J. Michael Fried                       2,868.06(2)(3)           6.3%
Michael J. Wechsler                           -                   -
Alan P. Hirmes                         2,868.06(2)(3)           6.3%
Stuart J. Boesky                       2,868.06(2)(3)           6.3%
Stephen M. Ross                        2,868.06(2)(3)           6.3%
Marc D. Schnitzer                      2,868.06(2)(3)           6.3%
Andrew J. Weil                                -                   -
Robert L. Levy                                -                   -
Glenn F. Hopps                                -                   -

All directors and executive
  officers of the general
  partner of the Related
  General Partner as a group
  (eight persons)


                                       2,868.06(2)(3)           6.3%
</TABLE>

(1) The address for each of the persons in the table is 625 Madison Avenue,  New
York, New York 10022.

(2) As set forth in Schedule 13D filed by Lehigh Tax Credit  Partners III L.L.C.
("Lehigh III") and Lehigh Tax Credit Partners,  Inc. (the "Managing  Member") on
January 25, 1999 with the Securities and Exchange  Commission (the "Commission")
and pursuant to a letter  agreement dated October 6, 1998 among the Partnership,
Lehigh III and Related Independence  Associates IV L.P. ("RIA") (the "Standstill
Agreement"),  Lehigh III agreed that,  prior to October 6, 2008 (the "Standstill
Expiration  Date"), it will not and it will cause certain  affiliates not to (i)
seek  to  propose  to  enter   into,   directly  or   indirectly,   any  merger,
consolidation, business combination, sale or acquisition of assets, liquidation,
dissolution or other similar transaction  involving the Partnership,  (ii) form,
join or  otherwise  participate  in a "group"  (within  the  meaning  of Section
13(d)(3) of the Act) with respect to any voting  securities of the  Partnership,
except  that those  affiliates  bound by the  Standstill  Agreement  will not be
deemed to have  violated it and formed a "group"  solely by acting in accordance
with the Standstill Agreement,  (iii) disclose in writing to any third party any
intention,  plan or  arrangement  inconsistent  with the terms of the Standstill
Agreement,  or (iv) loan money to,  advise,  assist or  encourage  any person in
connection  with  any  action  inconsistent  with the  terms  of the  Standstill
Agreement,  Lehigh  III also  agreed  to vote its BACs in the same  manner  as a
majority of all voting BACs holders;  provided,  however,  Lehigh is entitled to
vote its BACs as it determines  with regard to any proposal (i) to remove RIA as
a general  partner of the  Partnership  or (ii)  concerning the reduction of any
fees,  profits,  distributions  or  allocations  for the  benefit  of RIA or its
affiliates.  The discussion herein of the Standstill Agreement is subject to and
qualified in its entirety by  reference  to such  agreement,  a copy of which is
attached  hereto  as an  exhibit  and  incorporated  herein  by  reference.  The
addresses of each of the Partnership,  Lehigh III and RIA is 625 Madison Avenue,
New York, New York 10022.

(3) Each such party serves as a director and  executive  officer of the Managing
Member and owns an equity  interest  therein except J. Michael Fried,  Stuart J.
Boesky and Alan Hirmes who own only economic interests.

                                       40
<PAGE>

Item 13. Certain Relationships and Related Transactions

The  Partnership  has and will continue to have certain  relationships  with the
General Partner and its  affiliates,  as discussed in Item 11 and also Note 8 in
Item 8 above, which are incorporated herein by reference thereto. However, there
have been no direct  financial  transactions  between  the  Partnership  and the
members and officers of the General Partner.

Item 14. Principal Accountant Fees and Services

Audit Fees
The aggregate fees by Friedman LLP and its affiliates for professional  services
rendered  for the  audit  of the  Partnership's  annual  consolidated  financial
statements  for the years  ended  March 31, 2007 and 2006 and for the reviews of
the condensed  consolidated  financial  statements included in the Partnership's
quarterly  reports  on Form 10-Q for  those  years  were  $59,000  and  $88,500,
respectively.

Audit Related Fees
------------------
None.

Tax Fees
--------
The aggregate fees by Weiser LLP and its affiliates  for  professional  services
rendered for the preparation of the Partnership's annual tax returns were $8,900
and $8,700 for the years ended December 31, 2006 and 2005, respectively.

All Other Fees
--------------
None

The  Partnership  is not required to have, and does not have a stand alone audit
committee.

                                       41
<PAGE>

                                     PART IV

Item 15. Exhibits, Financial Statement Schedules
                                                                      Sequential
                                                                         Page
                                                                      ----------

(a) 1.   Financial Statements
         --------------------

         Report of Independent Registered Public Accounting Firm           13

         Consolidated Balance Sheets at March 31, 2007 and 2006            26

         Consolidated Statements of Operations for the years ended
           March 31, 2007, 2006 and 2005                                   27

         Consolidated  Statements of Changes in Partners'  Capital
           (Deficit) for the years ended March 31, 2007, 2006 and 2005     28

         Consolidated  Statements of Cash Flows for the years
           ended March 31, 2007, 2006 and 2005                             29

         Notes to Consolidated Financial Statements                        30

(a) 2.   Consolidated Financial Statement Schedules
         ------------------------------------------

         Report of Independent Registered Public Accounting Firm           49

         Schedule I - Condensed Financial Information of Registrant        50

         Schedule III - Real Estate and Accumulated Depreciation           53

         All other  schedules have been omitted because they are
           not required or because the required  information is
           contained in the financial statements or notes thereto.

(a) 3.   Exhibits
         --------

(3A)     Agreement of Limited Partnership of Independence Tax Credit
           Plus L.P. IV as adopted on February 22, 1995*

(3B)     Form of Amended and Restated Agreement of Limited Partnership
           of Independence Tax Credit Plus L.P. IV, attached to the
           Prospectus as Exhibit A**

(3C)     Certificate of Limited  Partnership of Independence Tax
           Credit Plus L.P. IV as filed on February 22, 1995*

(10A)    Form of Subscription Agreement attached to the Prospectus
           as Exhibit B**

(10B)    Escrow  Agreement between Independence Tax Credit Plus L.P.
           IV and Bankers  Trust Company*

(10C)    Form of Purchase and Sales Agreement  pertaining to the
           Partnership's  acquisition of Local Partnership Interests*

(10D)    Form of Amended and  Restated  Agreement of Limited
           Partnership  of Local Partnerships*

(21)     Subsidiaries of the Registrant                                    43

         *  Incorporated  herein as an exhibit by reference to
            exhibits filed with Post-Effective Amendment No. 4 to
            the Registration Statement on Form S-11 {Registration
            No. 33-89968}

         ** Incorporated  herein as an exhibit by reference to
            exhibits filed with Post-Effective Amendment No. 8
            to the Registration Statement on Form S-11
            {Registration No. 33-89968}

(31.1)   Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a)        46

(31.2)   Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a)        47

(32.1)   Certification  Pursuant to Rule 13a-14(b) or Rule 15d-14(b)
           and Section 1350 of Title 18 of the United States Code
           (18 U.S.C. 1350)                                                48

                                       42
<PAGE>

                                     PART IV


Item 15.  Exhibits, Financial Statement Schedules (continued)

                                                                 Jurisdiction of
(c)       Subsidiaries of the Registrant (Exhibit 21)              Organization
          ------------------------------                         ---------------

          BX-8A Team Associates, L.P.                                   NY
          Westminster Park Plaza                                        CA
          Fawcett Street Limited Partnership                            WA
          Figueroa Senior Housing Limited Partnership                   CA
          NNPHI Senior Housing Limited Partnership                      CA
          Belmont/McBride Apartments Limited Partnership                NJ
          New Zion Apartments Limited Partnership                       LA
          Bakery Village Urban Renewal Associates, L.P.                 NJ
          Sojourner Douglass, L.P.                                      NJ
          Marlton Housing Partnership, L.P.                             PA
          GP Kaneohe Limited Partnership                                HI
          KSD Village Apartments, Phase II, Ltd.                        KY
          Kanisa Apartments, Ltd.                                       KY
          Guymon Housing Partners, L.P.                                 OK

(d) Not applicable


                                       43
<PAGE>


                                   SIGNATURES
                                   ----------


Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.



                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                  (Registrant)


                                By:  RELATED INDEPENDENCE L.L.C.,
                                     a General Partner



Date: June 22, 2007
      -------------
                                     By:  /s/ Robert L. Levy
                                          ------------------
                                          Robert L. Levy
                                          Chief Financial Officer




Date: June 22, 2007
      -------------

                                     By:  /s/ Andrew J. Weil
                                          ------------------
                                          Andrew J. Weil
                                          President and Chief Executive Officer

                                       44
<PAGE>

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following  persons on behalf of the  registrant and
in the capacities and on the dates indicated:



     Signature                         Title                           Date
------------------   ----------------------------------------     --------------


/s/ Robert L. Levy
------------------   Chief Financial Officer of Related           June 22, 2007
Robert L. Levy       Independence L.L.C.                          -------------



/s/ Andrew J. Weil
------------------   President and Chief Executive Officer of     June 22, 2007
Andrew J. Weil       Related   Independence L.L.C.                -------------




/s/ Glenn F. Hopps
------------------   Treasurer of Related Independence L.L.C.     June 22, 2007
Glenn F. Hopps       (Principal Accounting Officer)               -------------


                                       45
<PAGE>

                                                                    Exhibit 31.1


                         CERTIFICATION PURSUANT TO RULE
                           13a-14(a) OR RULE 15d-14(a)


I, Robert L. Levy, certify that:

     1)  I have  reviewed  this annual  report on Form 10-K for the period ended
         March 31, 2007 of Independence Tax Credit Plus L.P. IV;

     2)  Based  on my  knowledge,  this  report  does  not  contain  any  untrue
         statement of a material fact or omit to state a material fact necessary
         to make the statements made, in light of the circumstances  under which
         such  statements  were made, not misleading  with respect to the period
         covered by this report;

     3)  Based on my knowledge, the consolidated financial statements, and other
         financial information included in this annual report, fairly present in
         all material respects the consolidated financial condition,  results of
         operations and cash flows of the registrant as of, and for, the periods
         presented in this report;

     4)  The registrant's  other  certifying  officer and  I are responsible for
         establishing  and maintaining  disclosure  controls and  procedures (as
         defined in Exchange Act Rules  13a-15(e) and  15d-15(e))  and  internal
         control  over  financial  reporting  (as  defined in Exchange Act Rules
         13a-15(f) and 15d-15(f)) for the registrant and have:

         a) designed such  disclosure  controls and  procedures,  or caused such
         disclosure   controls  and   procedures,   to  be  designed   under  my
         supervision,  to  ensure  that  material  information  relating  to the
         registrant including its consolidated subsidiaries, is made known to me
         by others  within  those  entities,  particularly  during the period in
         which this report is being prepared;

         b) designed such internal control over financial  reporting,  or caused
         such internal control over financial  reporting to be designed under my
         supervision,  to provide reasonable assurance regarding the reliability
         of financial  reporting and the preparation of  consolidated  financial
         statements for external purposes in accordance with generally  accepted
         accounting principles;

         c) evaluated the effectiveness of the registrant's  disclosure controls
         and procedures  and presented in this report my  conclusions  about the
         effectiveness of the disclosure controls and procedures,  as of the end
         of the period covered by this report based on such evaluation; and

         d)  disclosed  in this report any change in the  registrant's  internal
         control over financial  reporting that occurred during the registrant's
         fourth fiscal  quarter that has materially  affected,  or is reasonably
         likely to materially  affect,  the  registrant's  internal control over
         financial reporting; and

     5)  The other  certifying  officer and I have  disclosed,  based on my most
         recent evaluation of internal control over financial reporting,  to the
         registrant's auditors and the audit committee of the registrant's board
         of directors (or persons performing the equivalent functions):

         a) all significant  deficiencies and material  weaknesses in the design
         or operation of internal  control over  financial  reporting  which are
         reasonably  likely to  adversely  affect  the  registrant's  ability to
         record, process, summarize and report financial information; and

         b) any fraud,  whether or not  material,  that  involves  management or
         other  employees  who  have a  significant  role  in  the  registrant's
         internal control over financial reporting.



         Date: June 22, 2007
               -------------

                                                   By:  /s/ Robert L. Levy
                                                        ------------------
                                                        Robert L. Levy
                                                        Chief Financial Officer


                                       46
<PAGE>


                                                                    Exhibit 31.2


                         CERTIFICATION PURSUANT TO RULE
                           13a-14(a) OR RULE 15d-14(a)


I, Andrew J. Weil, certify that:

     1)  I have  reviewed  this annual  report on Form 10-K for the period ended
         March 31, 2007 of Independence Tax Credit Plus L.P. IV;

     2)  Based  on my  knowledge,  this  report  does  not  contain  any  untrue
         statement of a material fact or omit to state a material fact necessary
         to make the statements made, in light of the circumstances  under which
         such  statements  were made, not misleading  with respect to the period
         covered by this report;

     3)  Based on my knowledge, the consolidated financial statements, and other
         financial information included in this annual report, fairly present in
         all material respects the consolidated financial condition,  results of
         operations and cash flows of the registrant as of, and for, the periods
         presented in this report;

     4)  The registrant's  other  certifying  officer and  I are responsible for
         establishing  and maintaining  disclosure  controls and  procedures (as
         defined in Exchange Act Rules  13a-15(e) and  15d-15(e))  and  internal
         control  over  financial  reporting  (as  defined in Exchange Act Rules
         13a-15(f) and 15d-15(f)) for the registrant and have:

         a) designed such  disclosure  controls and  procedures,  or caused such
         disclosure   controls  and   procedures,   to  be  designed   under  my
         supervision,  to  ensure  that  material  information  relating  to the
         registrant including its consolidated subsidiaries, is made known to me
         by others  within  those  entities,  particularly  during the period in
         which this report is being prepared;

         b) designed such internal control over financial  reporting,  or caused
         such internal control over financial  reporting to be designed under my
         supervision,  to provide reasonable assurance regarding the reliability
         of financial  reporting and the preparation of  consolidated  financial
         statements for external purposes in accordance with generally  accepted
         accounting principles;

         c) evaluated the effectiveness of the registrant's  disclosure controls
         and procedures  and presented in this report my  conclusions  about the
         effectiveness of the disclosure controls and procedures,  as of the end
         of the period covered by this report based on such evaluation; and

         d)  disclosed  in this report any change in the  registrant's  internal
         control over financial  reporting that occurred during the registrant's
         fourth fiscal  quarter that has materially  affected,  or is reasonably
         likely to materially  affect,  the  registrant's  internal control over
         financial reporting; and

     5)  The other  certifying  officer and I have  disclosed,  based on my most
         recent evaluation of internal control over financial reporting,  to the
         registrant's auditors and the audit committee of the registrant's board
         of directors (or persons performing the equivalent functions):

         a) all significant  deficiencies and material  weaknesses in the design
         or operation of internal  control over  financial  reporting  which are
         reasonably  likely to  adversely  affect  the  registrant's  ability to
         record, process, summarize and report financial information; and

         b) any fraud,  whether or not  material,  that  involves  management or
         other  employees  who  have a  significant  role  in  the  registrant's
         internal control over financial reporting.



         Date: June 22, 2007
               -------------

                                       By: /s/ Andrew J. Weil
                                           ------------------
                                           Andrew J. Weil
                                           Chief Executive Officer


                                       47
<PAGE>

                                                                    Exhibit 32.1


                             CERTIFICATION PURSUANT
                       TO RULE 13a-14(bB) OR RULE 15d-14(b)
                          AND SECTION 1350 OF TITLE 18
                   OF THE UNITED STATES CODE (18 U.S.C. 1350)


In connection with the Annual Report of Independence  Tax Credit Plus L.P. IV on
Form 10-K for the period ended March 31, 2007 as filed with the  Securities  and
Exchange Commission ("SEC") on the date hereof (the "Report"), I, Robert L. Levy
and I, Andrew J. Weil, certify,  pursuant to 18 U.S.C.  Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:


       (1) The Report fully complies with the  requirements  of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and


       (2) The  information  contained  in the Report  fairly  presents,  in all
material respects, the consolidated financial condition and result of operations
of the registrant.

A signed  original of this  written  statement  required by Section 906 has been
provided to the  registrant and will be retained by the registrant and furnished
to the SEC or its staff upon request.



By: /s/ Robert L. Levy                 By: /s/ Andrew J. Weil
    ------------------                     ------------------
    Robert L. Levy                         Andrew J. Weil
    Chief Financial Officer                Chief Executive Officer
    June 22, 2007                          June 22, 2007


                                       48
<PAGE>

                     REPORT OF INDEPENDENT REGISTERED PUBLIC
                ACCOUNTING FIRM ON FINANCIAL STATEMENT SCHEDULES




To the Partners
Independence Tax Credit Plus L.P. IV and Subsidiaries


Under date of June 14, 2007, we reported on the  consolidated  balance sheets of
Independence  Tax Credit Plus L.P. IV and  Subsidiaries as of March 31, 2007 and
2006,  and  the  related  consolidated  statements  of  operations,  changes  in
partners'  capital  (deficit)  and  cash  flows  for  each of the  years  in the
three-year period ended March 31, 2007.

In  connection  with our  audits of the  aforementioned  consolidated  financial
statements,  we have also audited supporting Schedule I as of March 31, 2007 and
2006 and for the years ended March 31, 2007,  2006 and 2005, and Schedule III as
of March 31, 2007 and for the years ended March 31, 2007,  2006 and 2005.  These
supporting schedules are the responsibility of the Partnerships' management. Our
responsibility  is to express an opinion on these schedules based on our audits.
In our opinion,  these schedules  present fairly,  when read in conjunction with
the related consolidated financial statements, the financial data required to be
set forth therein.









/s/Friedman LLP


New York, New York
June 14, 2007

                                       49
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                   SCHEDULE I
            CONDENSED SCHEDULE OF FINANCIAL INFORMATION OF REGISTRANT



Summarized   condensed  financial   information  of  registrant  (not  including
consolidated subsidiary partnerships)



                            CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
                                     ASSETS


                                                                2007         2006
                                                            -----------   -----------
<S>                                                         <C>           <C>
Cash and cash equivalents                                   $   651,290   $   743,014
Investment in subsidiary partnerships                        13,537,609    15,990,190
Cash held in escrow                                             499,573       539,048
Other assets                                                  1,920,076     1,879,610
                                                            -----------   -----------

Total assets                                                $16,608,548   $19,151,862
                                                            ===========   ===========


                        LIABILITIES AND PARTNERS' CAPITAL


Due to general partner and affiliates                       $ 3,286,122   $ 2,827,630
Other liabilities                                                54,281        52,898
                                                            -----------   -----------
                                                              3,340,403     2,880,528
Total liabilities

Partners' capital                                            13,268,145    16,271,334
                                                            -----------   -----------

Total liabilities and partners' capital                     $16,608,548   $19,151,862
                                                            ===========   ===========
</TABLE>

Investments  in  subsidiary  partnerships  are recorded in  accordance  with the
equity method of accounting, wherein the investments are not reduced below zero.
Accordingly, partners' equity on the consolidated balance sheet will differ from
partners' equity shown above.

                                       50
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                   SCHEDULE I
            CONDENSED SCHEDULE OF FINANCIAL INFORMATION OF REGISTRANT
              (Not Including Consolidated Subsidiary Partnerships)


                       CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                           Year Ended March 31,
                                                -----------------------------------------
                                                   2007            2006           2005
                                                -----------    -----------    -----------
<S>                                             <C>            <C>            <C>
Revenues

Interest income                                 $    34,046    $    25,492    $    12,530
                                                -----------    -----------    -----------

Expenses

Administrative and management                       141,723        116,597         83,459
Administrative and management-related parties       458,492        565,817        482,511
                                                -----------    -----------    -----------

Total expenses                                      600,215        682,414        565,970
                                                -----------    -----------    -----------

Loss from operations                               (566,169)      (656,922)      (553,440)

Equity in loss of subsidiary partnerships        (2,437,020)    (2,389,254)    (2,683,270)
                                                -----------    -----------    -----------

Net loss                                        $(3,003,189)   $(3,046,176)   $(3,236,710)
                                                ===========    ===========    ===========
</TABLE>


                                       51
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                   SCHEDULE I
            CONDENSED SCHEDULE OF FINANCIAL INFORMATION OF REGISTRANT
              (Not Including Consolidated Subsidiary Partnerships)

                       CONDENSED STATEMENTS OF CASH FLOWS

                     Decreases in Cash and Cash Equivalents
<TABLE>
<CAPTION>
                                                                  Year Ended March 31,
                                                        -----------------------------------------
                                                            2007           2006           2005
                                                        -----------    -----------    -----------
<S>                                                     <C>            <C>            <C>
Cash flows from operating activities:

Net loss                                                $(3,003,189)   $(3,046,176)   $(3,236,710)
                                                        -----------    -----------    -----------

Adjustments to reconcile net loss to net cash used in
  operating activities:

Equity in loss of subsidiary partnerships                 2,437,020      2,389,254      2,683,270
Increase in other assets                                    (40,466)       (55,108)       (15,205)
Increase (decrease) in liabilities:
Due to general partner and affiliates                       458,492        565,817        482,652
Other liabilities                                             1,383          3,679         (4,721)
                                                        -----------    -----------    -----------

Total adjustments                                         2,856,429      2,903,642      3,145,996
                                                        -----------    -----------    -----------

Net cash used in operating activities                      (146,760)      (142,534)       (90,714)
                                                        -----------    -----------    -----------

Cash flows from investing activities:

Decrease in cash held in escrow                              39,475         53,975         13,637
Decrease in investments in subsidiary partnerships           15,561              0              0
                                                        -----------    -----------    -----------

Net cash provided by investing activities                    55,036         53,975         13,637
                                                        -----------    -----------    -----------

Net decrease in cash and cash equivalents                   (91,724)       (88,559)       (77,077)

Cash and cash equivalents, beginning of year                743,014        831,573        908,650
                                                        -----------    -----------    -----------

Cash and cash equivalents, end of year                  $   651,290    $   743,014    $   831,573
                                                        ===========    ===========    ===========
</TABLE>

                                       52
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                                  SCHEDULE III
        CONSOLIDATED SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION
                   Partnership Property Pledged as Collateral
                                 MARCH 31, 2007
<TABLE>
<CAPTION>
                                                                     Initial Cost to Partnership
                                                                   ------------------------------
                                                                                                         Cost
                                                                                                      Capitalized
                                                                                                     Subsequent to
                                                                                    Buildings and     Acquisition:
                Description                       Encumbrances          Land        Improvements     Improvements
----------------------------------------------    -------------    -------------    -------------    -------------
<S>                                               <C>              <C>              <C>              <C>
Apartment Complexes

BX-8A Team Associates, L.P.
   Bronx, NY                                      $   1,776,413    $       5,467    $   2,667,819    $     334,088
Westminster Park Plaza
   Los Angeles, CA                                    7,437,766        1,197,697        8,093,774        1,970,048
Fawcett Street Limited Partnership
   Tacoma, WA                                         1,954,297          390,654        4,247,465          188,181
Figueroa Senior Housing Limited Partnership
   Los Angeles, CA                                    2,983,075          279,000        4,978,250          569,697
NNPHI Senior Housing Limited Partnership
   Los Angeles, CA                                    3,901,163          709,657        6,135,419          436,619
Belmont/McBride Apartments Limited Partnership
   Paterson, NJ                                       2,747,165          154,934        5,627,693        2,512,963
Sojourner Douglass, L.P.
   Paterson, NJ                                       1,977,352          141,297        2,573,950          149,939
New Zion Apartments Limited Partnership
   Shreveport, LA                                       860,910           20,000        2,688,770           76,839
Bakery Village Urban Renewal Associates, L.P.
   Montclair, NJ                                      4,287,375           50,000       14,912,416        2,735,024
Marlton Housing Partnership, L.P.
   Philadelphia, PA                                   1,849,000            2,648        1,547,121        1,564,837
GP Kaneohe Limited Partnership
   Kaneohe, HI                                        1,694,987                0        3,306,828           65,878
KSD Village Apartments, Phase II Ltd.
   Danville, KY                                         383,866                0          887,539           37,552
Kanisa Apartments Ltd.
   Fayette County, KY                                 1,384,761          106,592        4,846,543          124,390
Guymon Housing Partners, L.P.
   Guymon, OK                                         1,813,618           84,918        4,238,907          739,965
                                                  -------------    -------------    --------------   -------------

                                                  $  35,051,752    $   3,142,864  $   66,752,494     $  11,506,020
                                                  =============    =============  ==============     =============

<CAPTION>

                                                  Gross Amount at which Carried at Close of Period
                                                  ------------------------------------------------



                                                                   Buildings and                       Accumulated
                Description                           Land          Improvements         Total         Depreciation
----------------------------------------------    -------------    --------------    -------------    -------------
<S>                                               <C>              <C>               <C>              <C>
Apartment Complexes

BX-8A Team Associates, L.P.
   Bronx, NY                                      $      11,579    $    2,995,795    $   3,007,374    $   1,144,630
Westminster Park Plaza
   Los Angeles, CA                                    1,292,427         9,969,092       11,261,519        2,459,110
Fawcett Street Limited Partnership
   Tacoma, WA                                           396,383         4,429,917        4,826,300        1,651,074
Figueroa Senior Housing Limited Partnership
   Los Angeles, CA                                      291,377         5,535,570        5,807,959        1,838,999
NNPHI Senior Housing Limited Partnership
   Los Angeles, CA                                      715,387         6,566,308        7,267,586        2,036,461
Belmont/McBride Apartments Limited Partnership
   Paterson, NJ                                         182,633         8,112,957        8,295,590        2,500,113
Sojourner Douglass, L.P.
   Paterson, NJ                                         143,996         2,721,190        2,837,724          958,958
New Zion Apartments Limited Partnership
   Shreveport, LA                                        22,699         2,762,910        2,785,609        1,017,394
Bakery Village Urban Renewal Associates, L.P.
   Montclair, NJ                                         52,699        17,644,741       17,697,440          771,713
Marlton Housing Partnership, L.P.
   Philadelphia, PA                                       4,355         3,110,251        3,263,776          655,314
GP Kaneohe Limited Partnership
   Kaneohe, HI                                              613         3,372,093        3,358,670          742,991
KSD Village Apartments, Phase II Ltd.
   Danville, KY                                             612           924,478          920,544          204,376
Kanisa Apartments Ltd.
   Fayette County, KY                                   107,205         4,970,320        5,077,525          947,674
Guymon Housing Partners, L.P.
   Guymon, OK                                            85,531         4,978,260        5,063,791          542,956
                                                  -------------    --------------    -------------    -------------

                                                  $   3,307,496    $   78,093,882    $  81,401,378    $  21,471,763
                                                  =============    ==============    =============    =============
<CAPTION>

                                                                                    Life on which
                                                                                    Depreciation in
                                                     Year of                        Latest Income
                                                  Construction/        Date         Statements are
                Description                        Renovation        Acquired        Computed (a)
----------------------------------------------    -------------    -------------    --------------
<S>                                                     <C>            <C>              <C>
Apartment Complexes

BX-8A Team Associates, L.P.
   Bronx, NY                                            1995-96        Oct. 1995         27.5 years
Westminster Park Plaza
   Los Angeles, CA                                      1996-97        June 1996         27.5 years
Fawcett Street Limited Partnership
   Tacoma, WA                                           1996-97        June 1996         27.5 years
Figueroa Senior Housing Limited Partnership
   Los Angeles, CA                                      1996-97        Nov. 1996         27.5 years
NNPHI Senior Housing Limited Partnership
   Los Angeles, CA                                      1996-97        Dec. 1996         27.5 years
Belmont/McBride Apartments Limited Partnership
   Paterson, NJ                                         1997-98        Jan. 1997         27.5 years
Sojourner Douglass, L.P.
   Paterson, NJ                                         1997-98        Feb. 1997         27.5 years
New Zion Apartments Limited Partnership
   Shreveport, LA                                       1997-98        Oct. 1997         27.5 years
Bakery Village Urban Renewal Associates, L.P.
   Montclair, NJ                                        1997-98        Dec. 1997         27.5 years
Marlton Housing Partnership, L.P.
   Philadelphia, PA                                     1998-99         May 1998         27.5 years
GP Kaneohe Limited Partnership
   Kaneohe, HI                                          1999-00        July 1999         7-40 years
KSD Village Apartments, Phase II Ltd.
   Danville, KY                                         1999-00        July 1999        10-40 years
Kanisa Apartments Ltd.
   Fayette County, KY                                   1998-99        Oct. 1999         5-40 years
Guymon Housing Partners, L.P.
   Guymon, OK                                           1998-99        Dec. 1999         27.5 years

</TABLE>

(a) Depreciation is computed using primarily the  straight-line  method over the
estimated useful lives determined by the Partnership date of acquisition




<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                                  SCHEDULE III
        CONSOLIDATED SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION
                   Partnership Property Pledged as Collateral
                                 MARCH 31, 2007
<TABLE>
<CAPTION>
                                                 Cost of Property and Equipment                   Accumulated Depreciation
                                          -------------------------------------------    -----------------------------------------
                                                                           Year Ended March 31,
                                          -----------------------------------------------------------------------------------------
                                              2007             2006           2005           2007            2006          2005
                                          ------------    ------------   ------------    ------------   ------------   ------------
<S>                                       <C>             <C>            <C>             <C>            <C>            <C>
Balance at beginning of year              $ 81,471,407    $ 81,388,959   $ 81,354,107    $ 19,086,200   $ 16,708,237   $ 14,320,391
(Adjustment to) additions during year:
Land, building and improvements                (70,029)         82,448         34,852
Accumulated deprecation on dispositions                                                             0              0         (2,906)
Depreciation expense                                                                        2,385,563      2,377,963      2,390,752
                                          ------------    ------------   ------------    ------------   ------------   ------------
Balance at close of year                  $ 81,401,378    $ 81,471,407   $ 81,388,959    $ 21,471,763   $ 19,086,200   $ 16,708,237
                                          ============    ============   ============    ============   ============   ============
</TABLE>

At the time the Local Partnerships were acquired by Independence Tax Credit Plus
L.P. IV, the entire purchase price paid by Independence  Tax Credit Plus L.P. IV
was pushed down to the Local  Partnerships  as property  and  equipment  with an
offsetting credit to capital.