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, 2006

                                       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, 2005 was
$18,086,000, 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,  CharterMac,  acquired CharterMac Capital LLC ("CharterMac
Capital")  (formerly known as Related Capital Company LLC),  which is the parent
of RCC Manager LLC, the managing member of the General Partner.  Pursuant to the
acquisition,  CharterMac 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 November 8, 2005,  CharterMac announced that Stuart J. Boesky would step down
as Chief  Executive  Officer and trustee of  CharterMac.  Upon his  resignation,
which was  effective on November 15, 2005, he also resigned from his position as
Senior Vice President and Member of the General Partner. Mr. Boesky will stay on
as a  consultant  to  CharterMac  for the next  year in order to ensure a smooth
transition.  On March 14,  2006,  CharterMac's  Board of Trustees  named Marc D.
Schnitzer the Chief Executive  Officer,  effective  immediately.  Mr.  Schnitzer
replaced  Stephen M. Ross,  who had served as interim  Chief  Executive  Officer
since Stuart J. Boesky resigned in November of 2005. Mr. Schnitzer also replaced
Mr. Boesky as Senior Vice President and Member of the General Partner.

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  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 ("Historic Tax Credit"). As
of March 31, 2006,  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, 2006, the Partnership had
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  $1,078,000 remains to be paid to the Local Partnerships
(including  approximately  $539,000 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.

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.

The Tax Credits are attached to a subsidiary  partnership ("Local  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


                                       2
<PAGE>



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, 2006, 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 from 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, 2006, 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 .

                           Local Partnership Schedule
                           --------------------------
<TABLE>
<CAPTION>
                                                                      Percentage of Units
                                                                       Occupied at May 1,
            Name and Location                                   ---------------------------------
            (Number of Units)                    Date Acquired  2006   2005   2004   2003   2002
----------------------------------------------   -------------  -----  -----  -----  -----  -----
<S>                                              <C>             <C>    <C>    <C>    <C>    <C>
BX-8A Team Associates, L.P.                      October 1995    100%   100%    98%    93%   100%
   Bronx, NY (41)

Westminster Park Plaza                           June 1996        91%    94%    98%    98%    99%
(a California Limited Partnership)
   Los Angeles, CA (130)

Fawcett Street Limited Partnership               June 1996        97%   100%    97%   100%    98%
   Tacoma, WA (60)

Figueroa Senior Housing Limited Partnership      November 1996    97%    97%    98%    98%   100%
   Los Angeles, CA (66)

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

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

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

New Zion Apartments Limited Partnership          October 1997    100%    94%    96%    95%    88%
   Shreveport, LA (100)

Bakery Village Urban Renewal Associates, L.P.    December 1997    98%    98%    98%    99%   100%
   Montclair, NJ (125)

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

GP Kaneohe Limited Partnership                   July 1999        96%   100%   100%   100%    98%
   Kaneohe, HI (44)

KSD Village Apartments, Phase II, Ltd.           July 1999       100%    94%   100%    94%    88%
   Danville, KY (16)

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

Guymon Housing Partners, L.P.                    December 1999    95%    96%    96%   100%   100%
   Guymon, OK (92)
</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 the respective 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 and  Related  Security  Holder
Matters

As of March 31, 2006, 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 18, 2006, the Partnership has approximately  2,543 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,
2006. 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                   2006           2005           2004            2003             2002
------------------------------------ ------------   ------------   -------------   -------------   --------------
<S>                                  <C>            <C>            <C>             <C>             <C>
 Revenues                            $  6,145,225   $  5,968,825   $   5,869,146   $   5,799,931   $    5,691,878

 Operating expenses                    (9,205,626)    (9,234,871)     (8,956,621)     (9,213,437)      (9,032,990)
                                     ------------   ------------   -------------   -------------   --------------

 Loss before minority interest         (3,060,401)    (3,266,046)     (3,087,475)     (3,413,506)      (3,341,112)

 Minority interest in loss of
  subsidiary
  partnership                              14,225         29,336          26,201          34,355           34,650
                                     ------------   ------------   -------------   -------------   --------------

 Net loss                            $ (3,046,176)  $ (3,236,710)  $  (3,061,274)  $  (3,379,151)  $   (3,306,462)
                                     ============   ============   =============   =============   ==============

 Net loss per weighted average BAC   $     (65.78)  $     (69.90)  $      (66.11)  $      (72.97)  $       (71.40)
                                     ============   ============   =============   =============   ==============

<CAPTION>

                                                                 Year Ended March 31,
                                     ----------------------------------------------------------------------------
        FINANCIAL POSITION               2006           2005           2004            2003             2002
------------------------------------ ------------   ------------   -------------   -------------   --------------
<S>                                  <C>            <C>            <C>             <C>             <C>
 Total assets                        $ 68,243,369   $ 70,814,773   $  73,292,160   $  75,661,500   $   78,765,789
                                     ============   ============   =============   =============   ==============
 Total liabilities                   $ 50,101,900   $ 49,612,903   $  48,812,277   $  48,094,142   $   47,526,993
                                     ============   ============   =============   =============   ==============

 Minority interest                   $  1,870,135   $  1,884,360   $   1,925,663   $   1,951,864   $    2,244,151
                                     ============   ============   =============   =============   ==============

 Total partners' capital             $ 16,271,334   $ 19,317,510   $  22,554,220   $  25,615,494   $   28,994,645
                                     ============   ============   =============   =============   ==============
</TABLE>


At  March  31,  2006,   2005,  2004  2003  and  2002,   total  assets  decreased
approximately $2,571,000,  $2,477,000, $2,369,000, $3,104,000 and $2,176,000 due
to depreciation and  amortization and a reduction in cash and cash  equivalents.
At March 31, 2006, 2005, 2004, 2003 and 2002,  property and equipment  decreased
approximately  $2,296,000,  $2,353,000,  $2,358,000,  $2,532,000  and $1,376,000
primarily due to depreciation  expense.  At March 31, 2006, 2005, 2004 and 2003,
mortgage notes decreased approximately $549,000, $214,000, $89,000 and $339,000,
respectively. At March 31, 2002 mortgage notes increased approximately $79,000.


                                       7
<PAGE>



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

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

As of March 31, 2006, 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  $1,078,000
remains to be paid to the Local Partnerships  (including  approximately $539,000
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,
2006, approximately $54,000 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, 2006.

The Partnership has received  $45,844,000 in gross proceeds for BACs pursuant to
a public  offering,  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,  2006,  cash and cash  equivalents  of the  Partnership  and its
fourteen consolidated Local Partnerships decreased approximately  ($178,000) due
to the acquisition of property and equipment  ($82,000),  repayments of mortgage
notes  ($549,000)  and a net  decrease  in due to  local  general  partners  and
affiliates  relating to  investing  activities  ($86,000)  which  exceeded  cash
provided by operating  activities  ($539,000).  Included in the  adjustments  to
reconcile the net loss to net cash provided by  operations is  depreciation  and
amortization of approximately $2,433,000.

Total  expenses  for the years ended  March 31,  2006,  2005 and 2004  excluding
depreciation and amortization, interest and general and administrative - related
parties, totaled $3,998,978,  $4,062,712 and $3,846,737  respectively.  Accounts
payable and other liabilities  totaled $9,675,759 and $9,075,556,  respectively,
which are comprised of the following amounts:

<TABLE>
<CAPTION>
                                                           March 31,
                                                    -----------------------
                                                       2006         2005
                                                    ----------   ----------
<S>                                                 <C>          <C>
Accounts payable                                    $  481,944   $  457,500
Accrued interest payable                             8,791,745    8,236,181
Security deposits payable                              402,070      381,875
                                                    ----------   ----------

   Total  accounts  payable and other liabilities   $9,675,759   $9,075,556
                                                    ==========   ==========
</TABLE>

As  indicated  in  the  above  table,   accrued   interest   payable   comprised
approximately 91% of the total accounts payable and other liabilities  amount at
both March 31, 2006 and 2005. 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.

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.

Partnership   management  fees  owed  to  the  General   Partner   amounting  to
approximately  $2,304,000 and $1,967,000 were accrued and unpaid as of March 31,
2006 and 2005, 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, 2006,  approximately  $204,000 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. During the
year ended March 31, 2006, there were no distributions from Local  Partnerships.
Management anticipates receiving  distributions in the future, although not to a
level sufficient to permit providing cash distributions to the BACs holders.

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, 2006 and 2005, the gross
amount of the Operating Deficit Guarantees aggregate  approximately  $1,897,000.
As of both  March 31,  2006 and 2005,  $0 has been  funded  under the  Operating


                                       8
<PAGE>



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, of which all will generate Tax Credits in 2006. 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 the range of $140-150 for each $1,000 BAC each year in
which the Partnership is receiving its full entitlement of Tax Credits.

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,
2006, 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)  $ 35,549,933    $    585,704    $  1,114,493     $  1,102,508    $ 32,747,228
                            ============    ============    ============     ============    ============
</TABLE>

(a)  The  mortgage  loans are  payable  in  aggregate  monthly  installments  of
     approximately  $131,000 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 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, 2006, the  Partnership has not recorded any loss on impairment
of assets or reductions to estimated fair value.

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.


                                       9
<PAGE>



Other revenues  include the following  amounts at both the Partnership and Local
Partnership level:

<TABLE>
<CAPTION>
                              Years Ended March 31,
                         ------------------------------
                           2006       2005       2004
                         --------   --------   --------
<S>                      <C>        <C>        <C>
Interest                 $ 68,739   $ 34,738   $ 41,261
Other                     199,907    249,548    199,750
                         --------   --------   --------

   Total other revenue   $268,646   $284,286   $241,011
                         ========   ========   ========
</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 above, which is
incorporated herein by reference.

New Accounting Pronouncements
-----------------------------

In June 2005, the Financial  Accounting Standards Board ("FASB") issued SFAS No.
154,  "Accounting  Changes and Error  Corrections" ("FAS 154"). FAS 154 replaces
Accounting Principles Board ("APB") Opinion No. 20, "Accounting Changes" and FAS
No. 3, "Reporting Accounting Changes in Interim Financial  Statements".  APB No.
20 previously  required that most voluntary  changes in accounting  principle be
recognized by including in the current period's net income the cumulative effect
of changing to the new accounting principle.  In contrast, FAS 154 requires that
a voluntary change in accounting  principle be applied  retrospectively to prior
periods' financial statements, unless this would be impracticable.  In addition,
FAS 154 makes a distinction between  retrospective  application of an accounting
principle and the restatement of financial  statements to reflect the correction
of an error.  FAS 154 is effective  for  accounting  changes and  correction  of
errors made in fiscal years  beginning  after December 15, 2005. The Partnership
does  not  expect  the  adoption  of FAS 154 to have a  material  impact  on its
consolidated financial statements.

In June 2005, the FASB issued Emerging Issues Task Force No. 04-5,  "Determining
Whether a General  Partner,  or the  General  Partners  as a Group,  Controls  a
Limited  Partnership  or Similar  Entity When the Limited  Partners Have Certain
Rights" ("EITF No. 04-5").  EITF No. 04-5 replaces  counterpart  requirements in
the  Statement of Position  78-9,  which  provides  guidance on  accounting  for
investments in  real-estate  ventures and limited  partnerships.  Under EITF No.
04-5, the general  partner's  control would be overcome if the limited  partners
have  either (i)  "kick-out  rights" - the right to dissolve  or  liquidate  the
partnership  or otherwise  remove the general  partner  "without  cause" or (ii)
"participating  rights" - the right to  effectively  participate  in significant
decisions  made  in the  ordinary  course  of the  partnership's  business.  The
kick-out  rights and the  participating  rights must be  substantive in order to
overcome the general partner's  control.  EITF No. 04-5 is now effective.  Since
the Partnership's  financial  statements are presented on a consolidated  basis,
the  adoption  of EITF No. 04-5 has not had a material  effect on  Partnership's
consolidated financial statements.

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

The net loss  for the  years  ended  March  31,  2006,  2005  and  2004  totaled
$3,046,176, $3,236,710 and $3,061,274, 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 $5,292,899,
$5,356,768 and $5,356,768 of Tax Credits during each of the 2005,  2004 and 2003
tax years, respectively.

The Partnership's results of operations for the years ended March 31, 2006, 2005
and 2004 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.

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.


                                       10
<PAGE>



2005 vs. 2004
-------------

Rental income  increased  approximately  1% for the year ended March 31, 2005 as
compared to the  corresponding  period  ended March 31, 2004,  primarily  due to
rental rate increases.

Other income increased  approximately  $43,000 for the year ended March 31, 2005
as compared to the corresponding  period ended March 31, 2004,  primarily due to
the write-off of certain  payables at one Local  Partnership  and an increase in
late charges and insufficient funds charges at a second Local Partnership.

Total expenses, excluding general and administrative-related parties and repairs
and maintenance, remained fairly consistent with an increase of approximately 1%
for the year ended March 31, 2005 as compared to the corresponding  period ended
March 31, 2004.

General and  administrative-related  parties increased approximately $69,000 for
the year ended March 31,  2005,  as compared to the  corresponding  period ended
March 31, 2004,  primarily  due to two Local  Partnerships  changing  from third
party management companies in 2004 to affiliated management companies in 2005.

Repairs and  maintenance  increased  approximately  $103,000  for the year ended
March 31, 2005,  as compared to the  corresponding  period ended March 31, 2004,
primarily due to an increase in supplies and miscellaneous  maintenance  expense
at one Local Partnership, the building exterior being painted and an increase in
wheelchair  lift  repairs  at a second  Local  Partnership  and an  increase  in
exterior painting expense at a third 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>



<TABLE>
<CAPTION>

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

<S>        <C>                                                                                               <C>
(a)1.      Consolidated Financial Statements

           Report of Independent Registered Public Accounting Firm                                           13

           Consolidated Balance Sheets at March 31, 2006 and 2005                                            27

           Consolidated Statements of Operations for the years ended March 31, 2006, 2005 and 2004           28

           Consolidated Statements of Changes in Partners' Capital (Deficit) for the years ended
             March 31, 2006, 2005 and 2004                                                                   29

           Consolidated Statements of Cash Flows for the years ended March 31, 2006, 2005 and 2004           30

           Notes to Consolidated Financial Statements                                                        31

</TABLE>


                                       12
<PAGE>



             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



TO THE PARTNERS OF 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,  2006 and  2005,  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,  2006.  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  fourteen  subsidiary   partnerships,   whose  losses  aggregated
$2,485,937 for the year ended March 31, 2004 and whose assets constituted 96% of
consolidated  assets at March 31, 2004.  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 statement 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,  2006 and 2005,  and the
results of their  operations and their cash flows for each of the years ended in
the  three-year  period  ended March 31, 2006,  in  conformity  with  accounting
principles generally accepted in the United States of America.



/s/ Friedman LLP
Friedman LLP
New York, New York
June 16, 2006


                                       13
<PAGE>



[LETTERHEAD OF REZNICK FEDDER & SILVERMAN]

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 years ended  December 31, 2003 and 2002,  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 audit in accordance with auditing standards  generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audits 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  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 BX 8A Team Associates,  L.P. as
of December 31, 2003 and 2002,  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/ Reznick Fedder & Silverman
Atlanta, Georgia
February 3, 2004


                                       14
<PAGE>



[LETTERHEAD OF REZNICK FEDDER & SILVERMAN]

INDEPENDENT AUDITORS' REPORT

To the Partners
Westminster Park Plaza, L.P.

We have audited the accompanying  balance sheets of Westminster Park Plaza, L.P.
as of December  31, 2003 and 2002,  and the related  statements  of  operations,
partners'  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 auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audits 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  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 Westminster Park Plaza, L.P. as
of December 31, 2003 and 2002, and the results of its operations, the changes in
partners'  deficit  and its cash flows for the years then ended,  in  conformity
with accounting principles generally accepted in the United States of America.

/s/ Reznick Fedder & Silverman
Sacramento, California
January 16, 2004


                                       15
<PAGE>



[LETTERHEAD OF MCDANIEL & HALLSTROM]

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, 2003 and 2002,  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 auditing standards generally accepted
in the  United  States of  America.  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  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, 2003 and 2002, 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 6, 2004


                                       16
<PAGE>



[LETTERHEAD OF CLIFFORD R. BENN]

INDEPENDENT AUDITOR'S REPORT

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, 2003, 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 generally  accepted  auditing  standards
used in the United States of America.  Those  standards  require that I plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatements.  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.  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, 2003, 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
February 12, 2004
Carson, California


                                       17
<PAGE>



[LETTERHEAD OF CLIFFORD R. BENN]

INDEPENDENT AUDITOR'S REPORT

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,
2003, 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 generally  accepted  auditing  standards
used in the United States of America.  Those  standards  require that I plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatements.  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.  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, 2003,  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
February 14, 2004
Carson, California


                                       18
<PAGE>



[LETTERHEAD OF REZNICK FEDDER & SILVERMAN]

INDEPENDENT AUDITORS' REPORT

To the Partners
Belmont/McBride Apartments
Urban Renewal Associates Limited Partnership

We have audited the accompanying  balance sheets of  Belmont/McBride  Apartments
Urban Renewal Associates  Limited  Partnership as of December 31, 2003 and 2002,
and the related  statements of operations,  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 auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audits 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  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  Belmont/McBride  Apartments
Urban Renewal Associates  Limited  Partnership as of December 31, 2003 and 2002,
and the results of its operations, the changes in partners' equity (deficit) and
cash flows for the years then ended, in conformity  with  accounting  principles
generally accepted in the United States of America.

/s/ Reznick Fedder & Silverman
Baltimore, Maryland
January 23, 2004


                                       19
<PAGE>



[LETTERHEAD OF COLE, EVANS & PETERSON]

INDEPENDENT  AUDITORS' REPORT ON THE BASIC FINANCIAL STATEMENTS AND SUPPLEMENTAL
INFORMATION

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, 2003, and the related
statements of income,  partners' capital 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 generally  accepted auditing standards
and Government  Auditing  Standards,  issued by the  Comptroller  General of the
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  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,  HUD Project No. LA48E000011,  at December
31, 2003 and the results of its operations,  changes in capital,  and cash flows
for the year then ended in conformity with U.S.  generally  accepted  accounting
principles.

Our audit was made  primarily for the purpose of forming an opinion on the basic
financial  statements for the year ended December 31, 2003 taken as a whole. The
supplementary  Schedules 1, 2 and 3 are  presented  for  purposes of  additional
analysis and are not a required  part of the basic  financial  statements.  Such
information has been subjected to the audit  procedures  applied in the audit 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.

In accordance with Government Auditing  Standards,  we have also issued a report
dated  February 10, 2004 on our  consideration  of New Zion  Apartments  Limited
Partnership's internal control, and on its compliance with certain provisions of
laws, regulations,  contracts, and grants. Those reports are an integral part of
an audit performed in accordance with Government  Auditing  Standards and should
be read in conjunction with this report in considering the results of our audit.

/s/ Cole, Evans & Peterson
Shreveport, Louisiana
Federal ID No. 72-0506596
Lead Auditor: Steven W. Hedgepeth
February 10, 2004


                                       20
<PAGE>



[LETTERHEAD OF REZNICK FEDDER & SILVERMAN]

INDEPENDENT AUDITORS' REPORT

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

We have audited the accompanying  balance sheets of Bakery Village Urban Renewal
Associates, L.P. as of December 31, 2003 and 2002, and the related statements of
operations,  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 auditing standards generally accepted
in the  United  States of  America.  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  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 Bakery Village Urban Renewal
Associates,  L.P.  as of  December  31,  2003 and 2002,  and the  results of its
operations, the changes in partners' equity (deficit) and its cash flows for the
years then ended, in conformity with accounting principles generally accepted in
the United States of America.

/s/ Reznick Fedder & Silverman
Baltimore, Maryland
February 3, 2004


                                       21
<PAGE>



[LETTERHEAD OF REZNICK FEDDER & SILVERMAN]

INDEPENDENT AUDITORS' REPORT

To the Partners
Marlton Housing Partnership, L.P.

We have audited the accompanying  balance sheets of Marlton Housing Partnership,
L.P. as of December 31, 2003 and 2002, 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 auditing standards generally accepted
in the  United  States of  America.  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 the 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. at  December  31, 2003 and 2002,  and the  results of its  operations,  the
changes in its partners'  equity (deficit) and its cash flows for the years then
ended in conformity with accounting  principles generally accepted in the United
States of America.

/s/ Reznick Fedder & Silverman
Baltimore, Maryland
February 6, 2004


                                       22
<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 sheet of GP Kaneohe Limited Partnership
as of December 31, 2003, and the related  statements of  operations,  changes in
partners'  capital  (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.

We conducted our audit in accordance with auditing standards  generally accepted
in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of
the 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  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 GP Kaneohe Limited Partnership
as of December 31, 2003, and the results of its  operations,  the changes in its
partners' capital (deficit) and cash flows for the year then ended in conformity
with accounting principles generally accepted in the United States of America.

In accordance with GOVERNMENT AUDITING  STANDARDS,  we have also issued a report
dated January 29, 2004, on our consideration of GP Kaneohe Limited Partnership's
internal  control,  and our test of its  compliance  with certain  provisions of
laws, regulations, contractors and grants. Those reports are an integral part of
an audit performed in accordance with GOVERNMENT  AUDITING  STANDARDS and should
be read in conjunction with this report in considering 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 supporting data required by HUD shown
on pages 11 and 12 is presented for purposes of additional analysis and is not a
required  part  of  the  basic  financial  statements  for  GP  Kaneoke  Limited
Partnership.  Such  information  has been  subjected to the auditing  procedures
applied in the audit 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/ Favors & Associates, CPA's, P.S.
Fircrest, Washington
January 29, 2004


                                       23
<PAGE>



[LETTERHEAD OF MILLER, MAYER, SULLIVAN, & STEVENS, LLP]

INDEPENDENT AUDITORS' REPORT

To the Partners
KSD Village Apartments, Phase II, Ltd,

We have audited the accompanying balance sheets of KSD Village Apartments, Phase
II,  Ltd.  as of  December  31,  2003  and 2002 and the  related  statements  of
operations, 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 auditing standards generally accepted
in the  United  States of  America.  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  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 KSD Village Apartments,  Phase
II, Ltd. as of December  31, 2003 and 2002,  and the results of its  operations,
changes  in  partners'  equity  (deficit)  and its cash flows for the years then
ended, in conformity with accounting principles generally accepted in the United
States of America.

/s/ Miller, Mayer, Sullivan, & Stevens, LLP
Lexington, Kentucky
January 23, 2004


                                       24
<PAGE>



[LETTERHEAD OF MILLER, MAYER, SULLIVAN, & STEVENS, LLP]

INDEPENDENT AUDITORS' REPORT

To the Partners
Kanisa Apartments Ltd.

We have audited the  accompanying  balance  sheets of Kanisa  Apartments,  Ltd.,
complex  no.  083-98017-YHA,  as of  December  31, 2003 and 2002 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 auditing standards generally accepted
in the United States of America and the standards applicable to financial audits
contained in GOVERNMENT  AUDITING STANDARDS issued by the Comptroller General of
the 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. 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 Kanisa Apartments,  Ltd. as of
December  31,  2003 and 2002,  and the  results  of its  operations,  changes in
partners'  equity  (deficit),  and its cash flows for the years then  ended,  in
conformity with accounting principles generally accepted in the United States of
America.

In accordance with GOVERNMENT AUDITING STANDARDS,  we have also issued a reports
dated  February  13,  2004 on our  consideration  of Kanisa  Apartments,  Ltd.'s
internal  control over  financial  reporting and on our tests of its  compliance
with certain  provisions  of laws,  regulations,  contracts,  and grants.  Those
reports are an integral part of an audit performed in accordance with GOVERNMENT
AUDITING  STANDARDS  and  should  be read in  conjunction  with  this  report in
considering the results of our audits.

Our audits  were  conducted  for the  purpose of forming an opinion on the basic
financial  statements  taken  as a whole.  The  accompanying  supplemental  data
included in this report 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/ Miller, Mayer, Sullivan, & Stevens, LLP
Lexington, Kentucky
February 13, 2004
EIN: 61-0866166
Lead Auditor: Darren C. Johnson, CPA
Audit Principal: John T. Miller, CPA


                                       25
<PAGE>



[LETTERHEAD OF HANKINS & COMPANY]

INDEPENDENT AUDITOR'S REPORT

Partners
Guymon Housing Partners Limited Partnership
D/B/A Blue Quail Apartments

We have  audited the  accompanying  balance  sheets of GUYMON  HOUSING  PARTNERS
LIMITED  PARTNERSHIP,  D/B/A BLUE QUAIL  APARTMENTS  as of December 31, 2003 and
2002, and the related statements of operations, changes in partners' capital 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 audit.

We conducted my audit in accordance with auditing  standards  generally accepted
in the  United  States of  America.  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  statement  presentation.   We  believe  that  our  audit  provides  a
reasonable basis for my 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,  D/B/A BLUE QUAIL  APARTMENTS as of December 31, 2003 and 2002, 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 20, 2004
Fort Smith, Arkansas


                                       26
<PAGE>



                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS


                                     ASSETS

<TABLE>
<CAPTION>

                                                                                                 March 31,
                                                                                       ----------------------------
                                                                                           2006            2005
                                                                                       ------------    ------------
<S>                                                                                    <C>             <C>
Property and equipment - at cost, less accumulated depreciation (Notes 2 and 4)        $ 62,385,207    $ 64,680,722
Cash and cash equivalents (Notes 2 and 10)                                                1,486,123       1,663,931
Cash held in escrow (Note 5)                                                              3,231,430       3,303,235
Deferred costs, less accumulated amortization (Notes 2 and 6)                               599,913         654,969
Other assets                                                                                540,696         511,916
                                                                                       ------------    ------------

Total assets                                                                           $ 68,243,369    $ 70,814,773
                                                                                       ============    ============


                               LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)


Liabilities:
  Mortgage notes payable (Note 7)                                                      $ 35,549,933    $ 36,098,561
  Accounts payable and other liabilities                                                  9,675,759       9,075,556
  Due to local general partners and affiliates (Note 8)                                   1,614,776       1,759,198
  Due to general partner and affiliates (Note 8)                                          3,261,432       2,679,588
                                                                                       ------------    ------------

Total liabilities                                                                        50,101,900      49,612,903
                                                                                       ------------    ------------

Minority interest                                                                         1,870,135       1,884,360
                                                                                       ------------    ------------

Commitments and contingencies (Note 10)

Partners' capital (deficit):
  Limited partners (100,000 BACs authorized; 45,844 issued and outstanding) (Note 1)     16,516,156      19,531,870

  General partner                                                                          (244,822)       (214,360)
                                                                                       ------------    ------------

Total partners' capital (deficit)                                                        16,271,334      19,317,510
                                                                                       ------------    ------------

Total liabilities and partners' capital (deficit)                                      $ 68,243,369    $ 70,814,773
                                                                                       ============    ============

</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 OPERATIONS

<TABLE>
<CAPTION>

                                                                 Years Ended March 31,
                                                       -----------------------------------------
                                                           2006           2005           2004
                                                       -----------    -----------    -----------
<S>                                                    <C>            <C>            <C>
Revenues
Rental income                                          $ 5,876,579    $ 5,684,539    $ 5,628,135
Other income                                               268,646        284,286        241,011
                                                       -----------    -----------    -----------

Total revenue                                            6,145,225      5,968,825      5,869,146
                                                       -----------    -----------    -----------

Expenses
General and administrative                               1,542,418      1,559,770      1,491,281
General and administrative-related parties (Note 8)        826,965        725,342        655,979
Repairs and maintenance                                  1,020,706      1,115,171      1,011,987
Operating and other                                        885,608        825,660        780,876
Taxes                                                      167,482        166,518        178,046
Insurance                                                  382,764        395,593        384,547
Interest                                                 1,946,664      1,998,814      1,977,957
Depreciation and amortization                            2,433,019      2,448,003      2,475,948
                                                       -----------    -----------    -----------

Total expenses                                           9,205,626      9,234,871      8,956,621
                                                       -----------    -----------    -----------

Loss before minority interest                           (3,060,401)    (3,266,046)    (3,087,475)

Minority interest in loss of subsidiary partnerships        14,225         29,336         26,201
                                                       -----------    -----------    -----------

Net loss                                               $(3,046,176)   $(3,236,710)   $(3,061,274)
                                                       ===========    ===========    ===========

Net loss - limited partners                            $(3,015,714)   $(3,204,343)   $(3,030,661)
                                                       ===========    ===========    ===========

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

Net loss per weighted average BAC                      $    (65.78)   $    (69.90)   $    (66.11)
                                                       ===========    ===========    ===========

</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 CHANGES IN PARTNERS' CAPITAL (DEFICIT)
                    YEARS ENDED MARCH 31, 2006, 2005 and 2004

<TABLE>
<CAPTION>

                                                                 Limited         General
                                                   Total         Partners        Partners
                                               ------------    ------------    ------------
<S>                                            <C>             <C>             <C>
Partners' capital (deficit) - April 1, 2003    $ 25,615,494    $ 25,766,873    $   (151,379)

Net loss                                         (3,061,274)     (3,030,661)        (30,613)
                                               ------------    ------------    ------------

Partners' capital (deficit) - March 31, 2004     22,554,220      22,736,212        (181,992)

Net loss                                         (3,236,710)     (3,204,342)        (32,368)
                                               ------------    ------------    ------------

Partners' capital (deficit) - March 31, 2005     19,317,510      19,531,870        (214,360)

Net Loss                                         (3,046,176)     (3,015,714)        (30,462)
                                               ------------    ------------    ------------

Partners' capital (deficit) - March 31, 2006   $ 16,271,334    $ 16,516,156    $   (244,822)
                                               ============    ============    ============

</TABLE>

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


                                       29
<PAGE>



                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>

                                                                     Years Ended March 31,
                                                           -----------------------------------------
                                                              2006           2005*          2004
                                                           -----------    -----------    -----------
<S>                                                        <C>            <C>            <C>
Cash flows from operating activities:
Net loss                                                   $(3,046,176)   $(3,236,710)   $(3,061,274)
                                                           -----------    -----------    -----------
Adjustments to reconcile net loss to net cash provided
  by operating activities:
Depreciation and amortization                                2,433,019      2,448,003      2,475,948
Minority interest in loss of subsidiary partnerships           (14,225)       (29,336)       (26,201)
Decrease (increase) in cash held in escrow                      71,578         54,158        (11,343)
(Increase) decrease in other assets                            (28,780)        15,857        (34,837)
Increase in accounts payable and other liabilities             600,203        835,700        810,443
Increase in due to local general partners and affiliates           269         17,379         16,677
Decrease in due to local general partners and affiliates       (58,753)             0         (1,881)
Increase in due to general partner and affiliates              581,844        536,175        462,839
                                                           -----------    -----------    -----------
Total adjustments                                            3,585,155      3,877,936      3,691,645
                                                           -----------    -----------    -----------

Net cash provided by operating activities                      538,979        641,226        630,371
                                                           -----------    -----------    -----------

Cash flows from investing activities:
Acquisition of property and equipment                          (82,448)       (37,758)       (47,194)
Decrease (increase) in cash held in escrow                         227        (64,456)      (320,303)
Increase in due to local general partners and affiliates        52,000          6,268         14,378
Decrease in due to local general partners and affiliates      (137,938)      (381,325)      (495,447)
                                                           -----------    -----------    -----------

Net cash used in investing activities                         (168,159)      (477,271)      (848,566)
                                                           -----------    -----------    -----------

Cash flows from financing activities:
Proceeds from mortgage notes                                         0        240,694      1,992,000
Repayments of mortgage notes                                  (548,628)      (454,265)    (2,080,874)
Increase in deferred costs                                           0         (5,383)             0
Decrease in capitalization of consolidated subsidiaries
  attributable to minority interest                                  0        (11,967)             0
                                                           -----------    -----------    -----------

Net cash used in financing activities                         (548,628)      (230,921)       (88,874)
                                                           -----------    -----------    -----------

Net decrease in cash and cash equivalents                     (177,808)       (66,966)      (307,069)

Cash and cash equivalents at beginning of year               1,663,931      1,730,897      2,037,966
                                                           -----------    -----------    -----------

Cash and cash equivalents at end of year                   $ 1,486,123    $ 1,663,931    $ 1,730,897
                                                           ===========    ===========    ===========

Supplemental disclosure of cash flow information:
Cash paid during the year for interest                     $ 1,391,100    $ 1,081,553    $ 1,156,624
                                                           ===========    ===========    ===========

</TABLE>

 *Reclassified for comparative purposes

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


                                       30
<PAGE>



                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006



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,  CharterMac,  acquired CharterMac Capital LLC ("CharterMac
Capital")  (formerly known as Related Capital Company LLC),  which is the parent
of RCC Manager LLC, the managing member of the General Partner.  Pursuant to the
acquisition,  CharterMac 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 November 8, 2005,  CharterMac announced that Stuart J. Boesky would step down
as Chief  Executive  Officer and trustee of  CharterMac.  Upon his  resignation,
which was  effective on November 15, 2005, he also resigned from his position as
Senior Vice President and Member of the General Partner. Mr. Boesky will stay on
as a  consultant  to  CharterMac  for the next  year in order to ensure a smooth
transition.  On March 14,  2006,  CharterMac's  Board of Trustees  named Marc D.
Schnitzer the Chief Executive  Officer,  effective  immediately.  Mr.  Schnitzer
replaced  Stephen M. Ross,  who had served as interim  Chief  Executive  Officer
since Stuart J. Boesky resigned in November of 2005. Mr. Schnitzer also replaced
Mr. Boesky as Senior Vice President and Member of the General Partner.

The  Partnership's   business  is  to  invest  in  other  partnerships   ("Local
Partnerships,"  "subsidiaries"  or "subsidiary  partnerships")  owning leveraged
apartment complexes ("Apartment Complexes") 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, 2006, 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, 2006, 2005
and 2004,  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  $10,000,  $8,000 and $7,000 for the years ended March
31, 2006,  2005 and 2004,  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.


                                       31
<PAGE>



                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006



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, 2006.

Through March 31, 2006, 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,
                                          --------------------------------------
                                            2006           2005           2004
                                          --------       --------       --------
<S>                                       <C>            <C>            <C>
Interest                                  $ 68,739       $ 34,738       $ 41,261
Other                                      199,907        249,548        199,750
                                          --------       --------       --------

   Total other revenue                    $268,646       $284,286       $241,011
                                          ========       ========       ========

</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).

g)  Mortgage Financing and Offering Costs

Costs incurred in connection  with obtaining  permanent  mortgage  financing are
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 Acquisition Costs

Acquisition 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.

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
financial statements and the amount of loss can be reasonably estimated.


                                       32
<PAGE>



                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006



j)  Use of Estimates

The  preparation  of  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, 2006                   March 31, 2005
                                           -----------------------------    -----------------------------
                                             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        $ 26,749,817     $ 27,444,099    $ 27,283,559    $  27,788,720
 Not practicable                           $  8,800,116               (a)   $  8,815,002               (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
                                                      2006            2005            (Years)
                                                  ------------    ------------     ------------
<S>                                               <C>             <C>                  <C>
Land                                              $  3,307,496    $  3,307,496
Building and improvements                           76,978,322      76,921,411         27.5
Furniture and fixtures                               1,185,589       1,160,052          5-7
                                                  ------------    ------------

                                                    81,471,407      81,388,959
Less:  Accumulated depreciation                    (19,086,200)    (16,708,237)
                                                  ------------    ------------

                                                  $ 62,385,207    $ 64,680,722
                                                  ============    ============

</TABLE>

Included in property and equipment at March 31, 2006 and 2005, 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, 2006 and 2005, building and
improvements   includes  $343,161  of  capitalized  interest.  No  interest  was
capitalized during the years ended March 31, 2006, 2005 and 2004.

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, 2006 and 2005.  Such fees have been
included in the cost of property and equipment.


                                       33
<PAGE>



                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006



Depreciation  expense for the years ended March 31, 2006, 2005 and 2004 amounted
to $ 2,377,963, $2,390,752 and $2,405,192, respectively.


NOTE 5 - Cash Held in Escrow

Cash held in escrow consists of the following:

<TABLE>
<CAPTION>

                                                               March 31,
                                                      --------------------------
                                                         2006            2005
                                                      ----------      ----------
<S>                                                   <C>             <C>
Purchase price payments*                              $  539,048      $  593,023
Real estate taxes, insurance and other                   929,090         999,551
Reserve for replacement                                1,380,838       1,327,090
Tenant security deposits                                 382,454         383,571
                                                      ----------      ----------

                                                      $3,231,430      $3,303,235
                                                      ==========      ==========

</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,
                                                  ----------------------------
                                                      2006            2005               Period
                                                  ------------    ------------     ------------------
<S>                                               <C>             <C>              <C>
Financing costs                                   $  1,006,807    $  1,006,807     2 through 45 years
Other deferred costs                                   177,692         177,692
                                                  ------------    ------------
                                                     1,184,499       1,184,499
Less:  Accumulated amortization                       (584,586)       (529,530)
                                                   ------------   ------------

                                                  $    599,913    $    654,969
                                                   ============   ============

</TABLE>

Amortization  expense for the years ended March 31, 2006, 2005 and 2004 amounted
to $55,056, $57,251 and $70,756, respectively.


NOTE 7 - Mortgage Loans Payable

The  mortgage   loans  are  payable  in  aggregate   monthly   installments   of
approximately  $131,000 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.

Annual principal  payments on the permanent debt requirements for mortgage notes
payable for each of the next five fiscal years and thereafter are as follows:

<TABLE>
<CAPTION>

  Fiscal Year                             Amount
-----------------                      -------------
    <S>                                <C>
    2006                               $    585,704
    2007                                    548,924
    2008                                    565,569
    2009                                    536,731
    2010                                    565,777
    Thereafter                           32,747,228
                                       ------------

                                       $ 35,549,933
                                       ============

</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  $8,792,000 and $8,236,000 as
of March 31,  2006 and 2005,  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


                                       34
<PAGE>



                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006



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.


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
development stage 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, 2006 and 2005, Operating
Deficit Guarantees aggregate approximately $1,897,000. As of both March 31, 2006
and 2005, $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.

B)  Related Party Expenses

Expenses  incurred to related  parties for the years ended March 31, 2006,  2005
and 2004 were as follows:

<TABLE>
<CAPTION>

                                                              Year Ended March 31,
                                                        ------------------------------
                                                          2006       2005       2004
                                                        --------   --------   --------
<S>                                                     <C>        <C>        <C>
Partnership management fees (a)                         $337,120   $337,122   $337,120
Expense reimbursements (b)                               228,697    145,390    143,665
Local administrative fees (d)                             76,000     60,000     62,000
                                                        --------   --------   --------

Total general and administrative - General Partner       641,817    542,512    542,785

Property  management  fees  incurred to affiliates of
  the subsidiary partnerships' general partners (c)      185,148    182,830    113,194
                                                        --------   --------   --------

Total general and administrative-
related parties                                         $826,965   $725,342   $655,979
                                                        ========   ========   ========

</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 $2,304,000 and $1,967,000 were
accrued and unpaid as of March 31, 2006 and 2005, 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
$388,853,  $384,730 and  $371,375  for the years ended March 31, 2006,  2005 and
2004, respectively.  Of these fees, $185,148, $182,830 and $113,194 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.


                                       35
<PAGE>



                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006



C) Due to Local General Partners and Affiliates

Due to local general partners and affiliates consists of the following:

<TABLE>
<CAPTION>

                                                            March 31,
                                                 ------------------------------
                                                     2006               2005
                                                 -----------        -----------
<S>                                              <C>                <C>
Development fee payable                          $ 1,766,263        $ 1,796,549
General partner loan payable                          40,000             40,000
General partner loan receivable                     (290,946)          (236,946)
Construction advances                                      0             25,000
Construction costs payable                            50,000             56,652
Operating advances                                    36,000              6,000
Management and other fees                             13,459             71,943
                                                 -----------        -----------

                                                 $ 1,614,776        $ 1,759,198
                                                 ===========        ===========

</TABLE>

NOTE 9 - Income Taxes

A reconciliation of the financial  statement net loss to the income tax loss for
the Partnership and its consolidated subsidiaries follows:

<TABLE>
<CAPTION>

                                                                         Year Ended December 31,
                                                                -----------------------------------------
                                                                    2005           2004*          2003*
                                                                -----------    -----------    -----------
<S>                                                             <C>            <C>            <C>
Financial statement net loss                                    $(3,046,176)   $(3,236,710)   $(3,061,274)

Differences between depreciation and amortization expense
  for financial reporting purposes and income tax purposes         (333,774)      (414,255)      (373,268)

Differences  resulting from parent company having a different
  fiscal year for income tax and financial reporting purposes        15,040        (11,934)         9,642

Tax exempt interest income                                          (24,764)       (10,841)        (7,913)

Other, including accruals for financial reporting
  purposes not
  deductible for income tax purposes until paid                      20,349         37,075       (131,430)
                                                                -----------    -----------    -----------

Net loss as shown on the income tax returns                     $(3,369,325)   $(3,636,665)   $(3,564,243)
                                                                ===========    ===========    ===========

</TABLE>

*    Reclassified for comparative purposes


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, 2006,
uninsured cash and cash equivalents at various banking institutions approximated
$1,345,000.

b)  Leases

One subsidiary  partnership is leasing the land on which the Project is located,
for a term of 65 years  starting on July 14, 1982.  At December  31,  2005,  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  (generally  ten
years from the date of investment or, if later,  the date the property is leased
to  qualified  tenants)  commences.   Because  of  the  time  required  for  the


                                       36
<PAGE>



                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006



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 $5,292,899,
$5,356,758 and $5,356,758 of Tax Credits during each of the 2005,  2004 and 2003
tax years, respectively. The Tax Credits expire at various times through 2010.


NOTE 11 - New Accounting Pronouncements

In June 2005, the Financial  Accounting Standards Board ("FASB") issued SFAS No.
154,  "Accounting  Changes and Error  Corrections" ("FAS 154"). FAS 154 replaces
Accounting Principles Board ("APB") Opinion No. 20, "Accounting Changes" and FAS
No. 3, "Reporting Accounting Changes in Interim Financial  Statements".  APB No.
20 previously  required that most voluntary  changes in accounting  principle be
recognized by including in the current period's net income the cumulative effect
of changing to the new accounting principle.  In contrast, FAS 154 requires that
a voluntary change in accounting  principle be applied  retrospectively to prior
periods' financial statements, unless this would be impracticable.  In addition,
FAS 154 makes a distinction between  retrospective  application of an accounting
principle and the restatement of financial  statements to reflect the correction
of an error.  FAS 154 is effective  for  accounting  changes and  correction  of
errors made in fiscal years  beginning  after December 15, 2005. The Partnership
does  not  expect  the  adoption  of FAS 154 to have a  material  impact  on its
consolidated financial statements.

In June 2005, the FASB issued Emerging Issues Task Force No. 04-5,  "Determining
Whether a General  Partner,  or the  General  Partners  as a Group,  Controls  a
Limited  Partnership  or Similar  Entity When the Limited  Partners Have Certain
Rights" ("EITF No. 04-5").  EITF No. 04-5 replaces  counterpart  requirements in
the  Statement of Position  78-9,  which  provides  guidance on  accounting  for
investments in  real-estate  ventures and limited  partnerships.  Under EITF No.
04-5, the general  partner's  control would be overcome if the limited  partners
have  either (i)  "kick-out  rights"-  the right to dissolve  or  liquidate  the
partnership  or otherwise  remove the general  partner  "without  cause" or (ii)
"participating  rights" - the right to  effectively  participate  in significant
decisions  made  in the  ordinary  course  of the  partnership's  business.  The
kick-out  rights and the  participating  rights must be  substantive in order to
overcome the general partner's  control.  EITF No. 04-5 is now effective.  Since
the Partnership's  financial  statements are presented on a consolidated  basis,
the  adoption  of EITF No. 04-5 has not had a material  effect on  Partnership's
consolidated financial statements.

                                       37
<PAGE>



                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006


NOTE 12 - Selected Quarterly Financial Data (Unaudited)
<TABLE>
<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)
                                                      =============   ============   =============   ============

<CAPTION>

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

                                                        June 30,      September 30,   December 31,     March 31,
                 OPERATIONS                               2004            2004            2004            2005
--------------------------------------------------    -------------   ------------   -------------   -----------
<S>                                                   <C>             <C>            <C>             <C>
Revenues                                              $   1,480,858   $  1,474,813   $   1,447,160   $  1,565,994

Operating expenses                                       (2,300,584)    (2,197,256)     (2,308,780)    (2,428,251)
                                                      -------------   ------------   -------------   ------------

Loss before minority interest                              (819,726)      (722,443)       (861,620)      (862,257)

Minority interest in loss of subsidiaries                     5,061          6,928           4,436         12,911
                                                      -------------   ------------   -------------   ------------

Net loss                                              $    (814,665)  $   (715,515)  $    (857,184)  $   (849,346)
                                                      =============   ============   =============   ============

Net loss per weighted average BAC                     $      (17.59)  $     (15.45)  $      (18.51)  $     (18.35)
                                                      =============   ============   =============   ============
</TABLE>

                                       38
<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, 2006, 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.


                                    PART III


Item 10.  Directors and Executive Officers of the Registrant

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.chartermac.com).

On November 17,  2003,  CharterMac  acquired  CharterMac  Capital,  which is the
parent of RCC Manager LLC, the managing member of the General Partner.  Pursuant
to the acquisition,  CharterMac  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 November 8, 2005,  CharterMac announced that Stuart J. Boesky would step down
as Chief  Executive  Officer and trustee of  CharterMac.  Upon his  resignation,
which was  effective on November 15, 2005, he also resigned from his position as
Senior Vice President and Member of the General Partner. Mr. Boesky will stay on
as a  consultant  to  CharterMac  for the next  year in order to ensure a smooth
transition.  On March 14,  2006,  CharterMac's  Board of Trustees  named Marc D.
Schnitzer the Chief Executive  Officer,  effective  immediately.  Mr.  Schnitzer
replaced  Stephen M. Ross,  who had served as interim  Chief  Executive  Officer
since Stuart J. Boesky resigned in November of 2005. Mr. Schnitzer also replaced
Mr. Boesky as Senior Vice President and Member of the General Partner.

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

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

Alan P. Hirmes                             Chief Executive Officer
                                           and Chief Financial Officer

Marc D. Schnitzer                          Senior Vice President

Glenn F. Hopps                             Treasurer


ALAN P.  HIRMES,  51, is a Director  and  President  of the General  Partner and
President  of the  General  Partner.  Mr.  Hirmes  has been a  Certified  Public
Accountant  in New York  since  1978.  Prior to  joining  CharterMac  Capital in
October  1983,  Mr.  Hirmes  was  employed  by  Weiner & Co.,  Certified  Public
Accountants.  Mr.  Hirmes is also a Vice  President of CharterMac  Capital.  Mr.
Hirmes  graduated from Hofstra  University  with a Bachelor of Arts degree.  Mr.
Hirmes also serves on the Board of Trustees of CharterMac and American  Mortgage
Acceptance Company.

MARC D.  SCHNITZER,  45,  is a Vice  President  of the  General  Partner.  He is
responsible  both for financial  restructurings  of real estate  properties  and
directing CharterMac Capital'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

                                       39
<PAGE>

CharterMac  Capital  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 CharterMac.

GLENN F. HOPPS,  43, is  Treasurer  of the General  Partner.  Mr.  Hopps  joined
CharterMac  Capital 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
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
<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 18,
2006 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.

                                   Amount and Nature of         Percentage
  Name of Beneficial Owner (1)     Beneficial Ownership          of Class
--------------------------------   --------------------     -------------------

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%
Glenn F. Hopps                                -                      -
Teresa Wicelinski                             -                      -

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%

(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)

                                       40
<PAGE>

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 who owns only
an economic interest.

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, 2006 and 2005 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  $52,000,
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 $8,700
for each of the years ended December 31, 2005 and 2004.

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
<TABLE>
<CAPTION>
                                                                                                        Sequential
                                                                                                           Page
                                                                                                        -----------

<S>      <C>                                                                                                <C>
(a) 1.   Financial Statements

         Report of Independent Registered Public Accounting Firm                                            13

         Consolidated Balance Sheets at March 31, 2006 and 2005                                             27

         Consolidated Statements of Operations for the years ended March 31, 2006, 2005 and 2004            28

         Consolidated Statements of Changes in Partners' Capital (Deficit) for the years ended
           March 31, 2006, 2005 and 2004                                                                    29

         Consolidated Statements of Cash Flows for the years ended March 31, 2006, 2005 and 2004            30

         Notes to Consolidated Financial Statements                                                         31

(a) 2.   Consolidated Financial Statement Schedules

         Report of Independent Registered Public Accounting Firm                                            48

         Schedule I - Condensed Financial Information of Registrant                                         49

         Schedule III - Real Estate and Accumulated Depreciation                                            52

         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

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

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

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

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

(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)                                                 47
</TABLE>

                                       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 26, 2006              By: /s/ Alan P. Hirmes
       -------------                  ------------------
                                      Alan P. Hirmes
                                      President, Member, Chief Executive Officer
                                      and Chief Financial Officer





<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:
<TABLE>
<CAPTION>
     Signature                            Title                                   Date
------------------    ---------------------------------------------------    --------------
<S>                   <C>                                                     <C>
/s/ Alan P. Hirmes
------------------    President and Member of Related Independence L.L.C.     June 26, 2006
Alan P. Hirmes        Chief Executive Officer and Chief Financial Officer     -------------

/s/ Glenn F. Hopps
------------------    Treasurer of Related Independence L.L.C. (principal     June 26, 2006
Glenn F. Hopps        accounting officer)                                     -------------
</TABLE>



<PAGE>


                                                                    Exhibit 31.1


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


I, Alan P.  Hirmes,  Chief  Executive  Officer  and Chief  Financial  Officer of
Related  Independence  L.L.C.  (the  "General  Partner"),  which is the  General
Partner of  Independence  Tax Credit Plus L.P. IV (the  "Partnership"),  certify
that:

     1)  I have  reviewed  this annual report on Form 10-K for the period ending
         March 31, 2006 of the Partnership;

     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  Partnership  as of,  and for,  the
         periods presented in this report;

     4)  I am 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  Partnership  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
         Partnership 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 financial  statements for
         external  purposes in accordance  with  generally  accepted  accounting
         principles;

         c) evaluated the effectiveness of the Partnership's disclosure controls
         and procedures and presented in this report our  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  Partnership's  internal
         control over financial reporting that occurred during the Partnership's
         fourth fiscal  quarter that has materially  affected,  or is reasonably
         likely to materially  affect,  the Partnership's  internal control over
         financial reporting; and

     5)  I have  disclosed,  based  on my most  recent  evaluation  of  internal
         control over financial reporting,  to the Partnership's auditors and to
         the board of directors of the General Partners:

         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  Partnership'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  Partnership's
         internal control over financial reporting.


         Date: June 26, 2006
               -------------

                                             By:  /s/ Alan P. Hirmes
                                                  ------------------
                                                  Alan P. Hirmes
                                                  Chief Executive Officer and
                                                  Chief Financial Officer



<PAGE>

                                                                    Exhibit 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)


In  connection  with the Annual Report of  Independence  Tax Credit Plus L.P. IV
(the  "Partnership")  on Form 10-K for the period  ended March 31, 2006 as filed
with the  Securities  and  Exchange  Commission  ("SEC") on the date hereof (the
"Report"),  I, Alan P.  Hirmes,  Chief  Executive  Officer  and Chief  Financial
Officer of  Related  Independence  L.L.C.  which is the  general  partner of the
Partnership, 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 Partnership.

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



By:  /s/Alan P. Hirmes
     -----------------
     Alan P. Hirmes
     Chief Executive Officer and Chief Financial Officer
     June 26, 2006



<PAGE>



            REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
            -------------------------------------------------------
                        ON FINANCIAL STATEMENT SCHEDULES
                        --------------------------------



TO THE PARTNERS OF
INDEPENDENCE TAX CREDIT PLUS L.P. IV AND SUBSIDIARIES


In  connection  with our  audits of the  consolidated  financial  statements  of
INDEPENDENCE TAX CREDIT PLUS L.P. IV AND SUBSIDIARIES  included in the Form 10-K
as presented in our opinion dated June 16, 2006, we have also audited supporting
Schedule I as of March 31, 2006 and 2005 and for the years ended 2006,  2005 and
2004 and  Schedule  III as of March 31,  2006 and for the years  ended March 31,
2006,  2005 and 2004.  In our  opinion,  based on our  audits,  these  schedules
present fairly, when read in conjunction with the related financial  statements,
the financial data required to be set forth therein.




/s/ Friedman LLP
Friedman LLP

New York, New York
June 16, 2006



<PAGE>


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


                            CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
                                     ASSETS


                                                      2006         2005
                                                  -----------   -----------
<S>                                               <C>           <C>
Cash and cash equivalents                         $   743,014   $   831,573
Investment in subsidiary partnerships              15,990,190    18,379,444
Cash held in escrow                                   539,048       593,023
Other assets                                        1,879,610     1,824,502
                                                  -----------   -----------

Total assets                                      $19,151,862   $21,628,542
                                                  ===========   ===========


                        LIABILITIES AND PARTNERS' CAPITAL


Due to general partner and affiliates             $ 2,827,630   $ 2,261,813
Other liabilities                                      52,898        49,219
                                                  -----------   -----------

Total liabilities                                   2,880,528     2,311,032

Partners' capital                                  16,271,334    19,317,510
                                                  -----------   -----------

Total liabilities and partners' capital           $19,151,862   $21,628,542
                                                  ===========   ===========
</TABLE>

                                       49
<PAGE>

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


                       CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                           Year Ended March 31,
                                                -----------------------------------------
                                                    2006           2005           2004
                                                -----------    -----------    -----------
<S>                                             <C>            <C>            <C>
Revenues

Interest income                                 $    25,492    $    12,530    $     6,849
                                                -----------    -----------    -----------

Expenses

Administrative and management                       116,597         83,459         97,212
Administrative and management-related parties       565,817        482,511        480,785
                                                -----------    -----------    -----------

Total expenses                                      682,414        565,970        577,997
                                                -----------    -----------    -----------

Loss from operations                               (656,922)      (553,440)      (571,148)

Equity in loss of subsidiary partnerships        (2,389,254)    (2,683,270)    (2,490,126)
                                                -----------    -----------    -----------

Net loss                                        $(3,046,176)   $(3,236,710)   $(3,061,274)
                                                ===========    ===========    ===========
</TABLE>

                                       50
<PAGE>

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

                       CONDENSED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                Year Ended March 31,
                                                       -----------------------------------------
                                                           2006           2005           2004
                                                       -----------    -----------    -----------
<S>                                                    <C>            <C>            <C>
Cash flows from operating activities:

Net loss                                               $(3,046,176)   $(3,236,710)   $(3,061,274)
                                                       -----------    -----------    -----------

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

Equity in loss of subsidiary partnerships                2,389,254      2,683,270      2,490,126
Increase in other assets                                   (55,108)       (15,205)        (8,476)
Increase (decrease) in liabilities:
Due to general partner and affiliates                      565,817        482,652        440,808
Other liabilities                                            3,679         (4,721)         3,530
                                                       -----------    -----------    -----------

Total adjustments                                        2,903,642      3,145,996      2,925,988
                                                       -----------    -----------    -----------

Net cash used in operating activities                     (142,534)       (90,714)      (135,286)
                                                       -----------    -----------    -----------

Cash flows from investing activities:

Decrease in cash held in escrow                             53,975         13,637          8,475
Decrease in investments in subsidiary partnerships               0              0       (180,000)
                                                       -----------    -----------    -----------

Net cash provided by (used in) provided by investing
  activities                                                53,975         13,637       (171,525)
                                                       -----------    -----------    -----------

Net decrease in cash and cash equivalents                  (88,559)       (77,077)      (306,811)

Cash and cash equivalents, beginning of year               831,573        908,650      1,215,461
                                                       -----------    -----------    -----------

Cash and cash equivalents, end of year                 $   743,014    $   831,573    $   908,650
                                                       ===========    ===========    ===========
</TABLE>


                                       51
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                                  SCHEDULE III
                    REAL ESTATE AND ACCUMULATED DEPRECIATION
                   Partnership Property Pledged as Collateral
                                 MARCH 31, 2006
<TABLE>
<CAPTION>
                                                                  Initial Cost to Partnership
                                                                  ---------------------------
                                                                                                    Cost
                                                                                                 Capitalized
                                                                                                Subsequent to
                                                                                 Buldings and    Acquisition:
                 Description                       Encumbrances       Land       Improvements    Improvements
----------------------------------------------     ------------   ------------   ------------   -------------
<S>                                                <C>            <C>            <C>            <C>
Apartment Complexes

BX-8A Team Associates, L.P.                        $  1,791,164   $      5,467   $  2,667,819   $     334,088
   Bronx, NY
Westminster Park Plaza                                7,533,865      1,197,697      8,093,774       1,970,048
   Los Angeles, CA
Fawcett Street Limited Partnership                    1,970,424        390,654      4,247,465         188,181
   Tacoma, WA
Figueroa Senior Housing Limited Partnership           2,990,419        279,000      4,978,250         550,709
   Los Angeles, CA
NNPHI Senior Housing Limited Partnership              3,909,312        709,657      6,135,419         422,510
   Los Angeles, CA
Belmont/McBride Apartments Limited Partnership        2,775,835        154,934      5,627,693       2,512,963
   Paterson, NJ
Sojourner Douglass, L.P.                              1,977,352        141,297      2,573,950         122,477
   Paterson, NJ
New Zion Apartments Limited Partnership                 909,049         20,000      2,688,770          76,839
   Shreveport, LA
Bakery Village Urban Renewal Associates, L.P.         4,378,104         50,000     14,912,416       2,735,024
   Montclair, NJ
Marlton Housing Partnership, L.P.                     1,849,000          2,648      1,547,121       1,714,007
   Philadelphia, PA
GP Kaneohe Limited Partnership                        1,810,261              0      3,306,828          51,842
   Kaneohe, HI
KSD Village Apartments, Phase II Ltd.                   393,265              0        887,539          33,006
   Danville, KY
Kanisa Apartments Ltd.                                1,391,628        106,592      4,846,543         124,390
   Fayette County, KY
Guymon Housing Partners, L.P.                         1,870,255         84,918      4,238,907         739,965
   Guymon, OK                                      ------------   ------------   ------------   -------------

                                                   $ 35,549,933   $  3,142,864   $ 66,752,494   $  11,576,049
                                                   ============   ============   ============   =============
<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.                        $     11,579      $   2,995,795      $ 3,007,374      $  1,034,565
   Bronx, NY
Westminster Park Plaza                                1,292,427          9,969,092       11,261,519         2,239,364
   Los Angeles, CA
Fawcett Street Limited Partnership                      396,383          4,429,917        4,826,300         1,498,100
   Tacoma, WA
Figueroa Senior Housing Limited Partnership             291,377          5,516,582        5,807,959         1,641,992
   Los Angeles, CA
NNPHI Senior Housing Limited Partnership                715,387          6,552,199        7,267,586         1,789,240
   Los Angeles, CA
Belmont/McBride Apartments Limited Partnership          182,633          8,112,957        8,295,590         2,210,110
   Paterson, NJ
Sojourner Douglass, L.P.                                143,996          2,693,728        2,837,724           860,395
   Paterson, NJ
New Zion Apartments Limited Partnership                  22,699          2,762,910        2,785,609           915,441
   Shreveport, LA
Bakery Village Urban Renewal Associates, L.P.            52,699         17,644,741       17,697,440         3,337,176
   Montclair, NJ
Marlton Housing Partnership, L.P.                         4,355          3,259,421        3,263,776           573,349
   Philadelphia, PA
GP Kaneohe Limited Partnership                              613          3,358,057        3,358,670           643,826
   Kaneohe, HI
KSD Village Apartments, Phase II Ltd.                       612            919,932          920,544           176,032
   Danville, KY
Kanisa Apartments Ltd.                                  107,205          4,970,320        5,077,525           821,641
   Fayette County, KY
Guymon Housing Partners, L.P.                            85,531          4,978,260        5,063,791         1,344,969
   Guymon, OK                                      ------------      -------------      -----------      ------------

                                                   $  3,307,496      $  78,163,911      $81,471,407      $ 19,086,200
                                                   ============      =============      ===========      ============
<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.                          1995-96           Oct. 1995          27.5 years
   Bronx, NY
Westminster Park Plaza                               1996-97           June 1996          27.5 years
   Los Angeles, CA
Fawcett Street Limited Partnership                   1996-97           June 1996          27.5 years
   Tacoma, WA
Figueroa Senior Housing Limited Partnership          1996-97           Nov. 1996          27.5 years
   Los Angeles, CA
NNPHI Senior Housing Limited Partnership             1996-97           Dec. 1996          27.5 years
   Los Angeles, CA
Belmont/McBride Apartments Limited Partnership       1997-98           Jan. 1997          27.5 years
   Paterson, NJ
Sojourner Douglass, L.P.                             1997-98           Feb. 1997          27.5 years
   Paterson, NJ
New Zion Apartments Limited Partnership              1997-98           Oct. 1997          27.5 years
   Shreveport, LA
Bakery Village Urban Renewal Associates, L.P.        1997-98           Dec. 1997          27.5 years
   Montclair, NJ
Marlton Housing Partnership, L.P.                    1998-99            May 1998          27.5 years
   Philadelphia, PA
GP Kaneohe Limited Partnership                       1999-00           July 1999          7-40 years
   Kaneohe, HI
KSD Village Apartments, Phase II Ltd.                1999-00           July 1999         10-40 years
   Danville, KY
Kanisa Apartments Ltd.                               1998-99           Oct. 1999          5-40 years
   Fayette County, KY
Guymon Housing Partners, L.P.                        1998-99           Dec. 1999          27.5 years
   Guymon, OK
</TABLE>

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

                                       52
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                                  SCHEDULE III
                    REAL ESTATE AND ACCUMULATED DEPRECIATION
                   Partnership Property Pledged as Collateral
                                 MARCH 31, 2006
<TABLE>
<CAPTION>

                                                Cost of Property and Equipment                   Accumulated Depreciation
                                          -------------------------------------------   ------------------------------------------
                                                                           Year Ended March 31,
                                          -----------------------------------------------------------------------------------------
                                              2006            2005           2004           2006           2005            2004
                                          ------------    ------------   ------------   ------------   ------------    ------------
<S>                                       <C>             <C>            <C>            <C>            <C>             <C>
Balance at beginning of year              $ 81,388,959    $ 81,354,107   $ 81,306,913   $ 16,708,237   $ 14,320,391    $ 11,915,199
(Adjustment to) additions during year:
Land, building and improvements                 82,448          34,852         47,194
Accumulated deprecation on dispositions                                                            0         (2,906)              0
Depreciation expense                                                                       2,377,963      2,390,752       2,405,192
                                          ------------    ------------   ------------   ------------   ------------    ------------
Balance at close of year                  $ 81,471,407    $ 81,388,959   $ 81,354,107   $ 19,086,200   $ 16,708,237    $ 14,320,391
                                          ============    ============   ============   ============   ============    ============
</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.

                                       53