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

                                    FORM 10-Q

(Mark One)


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


For the quarterly period ended September 30, 1998

                                       OR

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


                         Commission File Number 33-89968


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


            Delaware                                        13-3809869       
-------------------------------                         ------------------
(State or other jurisdiction of                         (I.R.S. Employer
incorporation or 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)421-5333


         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 [ ]



<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                           Consolidated Balance Sheets
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                 September 30,       March 31,
                                                     1998              1998     
                                                 -------------    --------------
<S>                                             <C>               <C>
ASSETS

Property and equipment at cost,
  net of accumulated depreciation
  of $1,621,121 and $1,134,299,
  respectively                                   $ 34,674,912      $ 33,487,474
Construction in progress                           13,958,097         9,294,984
Cash and cash equivalents                          10,312,788         9,811,741
Investments available for sale                     11,450,000        17,000,000
Cash held in escrow                                 2,475,370         2,454,311
Deferred costs, net of accumulated
  amortization
  of $67,622  and $53,186, respectively             1,547,121         1,555,982
Other assets                                          535,477           391,570
                                                 ------------      ------------
  Total assets                                   $ 74,953,765      $ 73,996,062
                                                 ============      ============

LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
  Mortgage notes payable                         $ 18,421,920      $ 17,371,283
  Construction loans payable                        7,596,857         7,468,689
  Accounts payable and other
   liabilities                                      4,431,694         4,069,053
  Due to local general partners and
   affiliates                                       3,062,319         3,320,488
  Due to general partner and affiliates               596,289           507,387
                                                 ------------      ------------
   Total liabilities                               34,109,079        32,736,900
                                                 ------------      ------------

Minority interest                                     758,067           736,218
                                                 ------------      ------------
Partners' capital:
  Limited partners (45,844 BACs
   issued and outstanding)                         40,093,286        40,525,248
  General partner                                      (6,667)           (2,304)
                                                 ------------      ------------
   Total partners' capital                         40,086,619        40,522,944
                                                 ------------      ------------
   Total liabilities and partners'
     capital                                     $ 74,953,765      $ 73,996,062
                                                 ============      ============
</TABLE>


          See Accompanying Notes to Consolidated Financial Statements.

                                       -2-

<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      Consolidated Statements of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>

                              Three Months Ended              Six Months Ended
                                  September 30,                 September 30,     
                              1998           1997*          1998            1997    
                          --------------------------    --------------------------
<S>                       <C>            <C>            <C>            <C>
Revenues
Rental income             $   572,985    $   329,989    $ 1,078,955    $   633,270
Other income
  (principally interest
  on capital
  contributions)              236,887        293,051        453,474        591,269
                          -----------    -----------    -----------    -----------
Total revenues                809,872        623,040      1,532,429      1,224,539
                          -----------    -----------    -----------    -----------

Expenses
General and
  administrative              240,028        118,860        444,363        239,232
General and
  administrative-
  related parties
  (Note 2)                     91,019         80,094        208,242        163,895
Repairs and
  maintenance                  47,042         31,759        109,676         84,914
Operating                     109,444         95,203        163,899        139,287
Taxes                           7,818         46,445         33,514         46,445
Insurance                      26,197         20,736         61,989         37,105
Interest                      223,535        190,961        423,964        378,252
Depreciation and
  amortization                254,974        161,119        501,258        322,173
                          -----------    -----------    -----------    -----------
Total expenses              1,000,057        745,177      1,946,905      1,411,303
                          -----------    -----------    -----------    -----------

Loss before minority
  interest                   (190,185)      (122,137)      (414,476)      (186,764)
Minority interest in
  (income) loss of
  subsidiary
  partnerships                (16,074)           610        (21,849)         1,475
                          -----------    -----------    -----------    -----------

Net loss                  $  (206,259)   $  (121,527)   $  (436,325)   $  (185,289)
                          ===========    ===========    ===========    ===========

Net loss -limited
  partners                $  (204,197)   $  (120,312)   $  (431,962)   $  (183,436)
                          ===========    ===========    ===========    ===========

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

Net loss per BAC          $     (4.45)   $     (2.62)   $     (9.42)   $     (4.00)
                          ===========    ===========    ===========    ===========

</TABLE>

*Reclassified for comparative purposes.


          See Accompanying Notes to Consolidated Financial Statements.

                                       -3-

<PAGE>



                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
             Consolidated Statement of Changes in Partners' Capital
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                  Limited             General
                                 Total            Partners            Partner 
                             -----------         -----------         ---------
<S>                          <C>                 <C>                 <C>
Partners' capital -
 April 1, 1998               $40,522,944         $40,525,248         $  (2,304)
Net loss                        (436,325)           (431,962)           (4,363)
                             -----------         -----------         ---------
Partners' capital -
 September 30, 1998          $40,086,619         $40,093,286         $  (6,667)
                             ===========         ===========         =========
</TABLE>

          See Accompanying Notes to Consolidated Financial Statements.

                                       -4-


<PAGE>



                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                       Six Months Ended
                                                            September 30,       
                                                     1998               1997
                                                 -----------         ---------
<S>                                              <C>               <C>
Cash flows from operating activities:
  Net loss                                       $   (436,325)     $   (185,289)
                                                 ------------      ------------
  Adjustments to reconcile net
   loss to net cash provided by
   operating activities:
  Depreciation and amortization                       501,258           322,173
  Minority interest in income (loss)
   of subsidiary properties                            21,849            (1,475)
  (Increase) decrease in cash
   held in escrow                                     (21,059)              727
  Increase in other assets                           (102,558)          (44,920)
  Increase in accounts
   payable and other liabilities                      309,177           176,430
  Increase in due to local general
   partners and affiliates                             18,250            60,000
  Decrease in due to local general
   partners and affiliates                            (98,367)                0
  Increase (decrease) in due to
   general partner and affiliates                      88,902           (73,527)
                                                 ------------      ------------
   Total adjustments                                  717,452           439,408
                                                 ------------      ------------

  Net cash provided by operating
   activities                                         281,127           254,119
                                                 ------------      ------------

Cash flows from investing activities:
  Increase in property and equipment               (1,674,260)         (712,486)
  Increase in construction in progress             (4,663,113)       (5,354,086)
  Increase in accounts payable and
   other liabilities                                   53,464           948,980
  Increase in other assets                            (41,349)         (445,556)
  Increase in due to local general
   partners and affiliates                            160,738         1,156,046
  Decrease in due to local general
   partners and affiliates                           (338,790)         (775,469)
  Decrease (increase) in investments
   available for sale                               5,550,000        (4,500,000)
  Increase in deferred costs                           (5,575)          (74,778)
                                                 ------------      ------------
  Net cash used in
   investing activities                              (958,885)       (9,757,349)
                                                 ------------      ------------
</TABLE>


          See Accompanying Notes to Consolidated Financial Statements.

                                       -5-


<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                                   (continued)
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                        Six Months Ended
                                                           September 30, 
                                                 -------------------------------
                                                     1998              1997
                                                 -------------     ------------- 
<S>                                              <C>               <C>


Cash flows from financing activities:
  Proceeds from mortgage notes                      1,084,000           363,124
  Repayments of mortgage notes                        (33,363)          (19,547)
  Proceeds from construction loans                  1,176,603         4,095,039
  Repayments of construction loans                 (1,048,435)       (1,276,637)
  Increase in deferred costs                                0            (8,272)
                                                 ------------      ------------
Net cash provided by financing
  activities                                        1,178,805         3,153,707
                                                 ------------      ------------

Net increase (decrease) in cash and
  cash equivalents                                    501,047        (6,349,523)
Cash and cash equivalents at
  beginning of period                               9,811,741        17,061,164
                                                 ------------      ------------
Cash and cash equivalents at
  end of period                                  $ 10,312,788      $ 10,711,641
                                                 ============      ============

Supplemental disclosures of
  noncash investing activities:
  Consolidation of investment in
   subsidiary partnership:*
   Decrease in property and
     equipment                                   $          0      $  3,201,522
   Increase in construction in
     progress                                    $          0      $ (3,201,522)
</TABLE>


*Prior to consolidation, investment in subsidiary partnerships are included in
property and equipment.


          See Accompanying Notes to Consolidated Financial Statements.

                                       -6-


<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                          Notes to Financial Statements
                               September 30, 1998
                                   (Unaudited)

Note 1 - General

Independence Tax Credit Plus L.P. IV (a Delaware limited partnership) (the
"Partnership") was organized on February 22, 1995, and commenced the 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").

The Partnership's business is to invest in other partnerships ("Local
Partnerships", "subsidiaries" or "subsidiary partnerships") owning apartment
complexes that are eligible for the low-income housing tax credit ("Housing Tax
Credit") enacted in the Tax Reform Act of 1986, some of which complexes may also
be eligible for the historic rehabilitation tax credit ("Historic Tax Credit";
together with Housing Tax Credits, "Tax Credits").

As of September 30, 1998, the Partnership has acquired a limited partnership
interest in ten subsidiary partnerships. The Partnership anticipates acquiring
limited partnership interests in additional subsidiary partnerships in the
future. The Partnership's investment in each Local Partnership represents from
95% to 99.89% with one Local Partnership at 58.12% of the partnership interests
in the Local Partnership. 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 partnerships and to approve certain major operating and financial
decisions, the Partnership has a controlling financial interest in the
subsidiary partnership.

For financial reporting purposes, the Partnership's fiscal quarter ends
September 30. All subsidiaries have fiscal quarters ending June 30. Accounts of
the subsidiaries have been adjusted for intercompany transactions from July 1
through September 30. The Partnership's fiscal quarter ends September 30 in
order to allow adequate time for the subsidiaries financial statements to be
prepared and consolidated.

All intercompany accounts and transactions with the subsidiary partnerships have
been eliminated in consolidation.


                                       -7-


<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                          Notes to Financial Statements
                               September 30, 1998
                                   (Unaudited)

Increases (decreases) in the capitalization of consolidated subsidiaries
attributable to minority interest 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 $0 and $7,000 and $0 and $78,000 for the three and six
months ended September 30, 1998 and 1997, 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.

Certain information and note disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted or condensed. These condensed financial statements should be
read in conjunction with the financial statements and notes thereto included in
the Partnership's Annual Report on Form 10-K for the period ended March 31,
1998.

The books and records of the Partnership are maintained on the accrual basis of
accounting in accordance with generally accepted accounting principles. In the
opinion of the General Partner of the Partnership, the accompanying unaudited
financial statements contain all adjustments (consisting only of normal
recurring adjustments) necessary to present fairly the financial position of the
Partnership as of September 30, 1998, the results of operations for the three
and six months ended September 30, 1998 and 1997 and cash flows for the six
months ended September 30, 1998 and 1997. However, the operating results for the
six months ended September 30, 1998 may not be indicative of the results for the
year.


                                       -8-


<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                          Notes to Financial Statements
                               September 30, 1998
                                   (Unaudited)

Note 2 - Related Party Transactions

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

The costs incurred to related parties are as follows:

A)  Acquisition Fees and Expenses

The General Partner is entitled to an acquisition fee equal to 6.0% of the gross
proceeds of the offering paid upon investor closings, for its services in
connection with assisting the Local Partnerships in acquiring apartment
complexes and supervising the construction of the complexes. Such fees will be
capitalized as a cost of the investments upon closing of subsidiary partnership
acquisitions. As of both September 30, 1998 and March 31, 1998, $2,750,640 of
such costs have been incurred, of which $1,770,677 have been capitalized.

B)  Other Related Party Expenses

The costs incurred to related parties for the three and six months ended
September 30, 1998 and 1997 were as follows:

<TABLE>
<CAPTION>

                                     Three Months Ended       Six Months Ended
                                       September 30,            September 30,     
                                      1998        1997        1998        1997
                                    --------------------    --------------------
<S>                                 <C>         <C>         <C>         <C>
Partnership manage-
  ment fees (a)                     $ 69,328    $ 42,933    $138,657    $ 84,229
Expense reimburse-
  ment (b)                            13,414      26,955      53,364      60,813
Local administra-
  tive fee (d)                         1,500       1,500       2,500       2,500
                                    --------    --------    --------    --------
                                      84,242      71,388     194,521     147,542
                                    --------    --------    --------    --------
Property manage-
  ment fees incurred
  to affiliates of
  the subsidiary
  partnerships'
  general partners (c)                 6,777       8,706      13,721      16,353
                                    --------    --------    --------    --------
Total general and
  administrative-
  related parties                   $ 91,019    $ 80,094    $208,242    $163,895
                                    ========    ========    ========    ========
</TABLE>


                                       -9-


<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                          Notes to Financial Statements
                               September 30, 1998
                                   (Unaudited)

(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 from working capital reserves or 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 theretofore paid out of cash flow).
Partnership management fees owed to the General Partner amounting to
approximately $307,000 and $269,000 were accrued and unpaid as of September 30,
1998 and March 31, 1998, 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 service include site visits and evaluations of the subsidiary
partnerships' performance.

(c) Property management fees incurred by the Local Partnerships amounted to
$41,283 and $20,492 and $72,704 and $40,099 for the three and six months ended
September 30, 1998 and 1997, respectively. Of these fees $6,777 and $8,706 and
$13,721 and $16,353 were 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.

                                      -10-

<PAGE>


Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations

Liquidity and Capital Resources

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

As of September 30, 1998, the Partnership has invested approximately $29,279,000
(including approximately $1,161,000 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 net proceeds in ten
Local Partnerships of which approximately $10,267,000 remains to be paid to the
Local Partnerships (including approximately $2,313,000 being held in escrow) as
certain benchmarks, such as occupancy level, must be attained prior to the
release of the funds. One Local Partnership was acquired during the six months
ended September 30, 1998 for a purchase price of approximately $1,889,000 of
which approximately $283,000 remains to be paid. The Partnership has
approximately $7,167,000 available for future investments. During the six months
ended September 30, 1998, approximately $4,874,000 was paid to Local
Partnerships (none of which was released from escrow). The Partnership will be
acquiring additional properties, and the Partnership may be required to fund
potential purchase price adjustments based on tax credit adjustor clauses. There
were no purchase price adjustments during the six months ended September 30,
1998.

For the six months ended September 30, 1998, cash and cash equivalents of the
Partnership and its ten consolidated Local Partnerships increased approximately
$501,000 primarily due to cash provided by operating activities ($281,000), a
decrease in investments available for sale ($5,550,000) and net proceeds from
mortgage and construction loans ($2,261,000) which exceeded an increase in
property and equipment ($1,674,000), an increase in construction in progress
($4,663,000), a net decrease in due to local general partners and affiliates
relating to investing activities ($178,000) and net repayments of mortgage and
construction loans ($1,082,000). Included in the adjustments to reconcile the
net loss to cash provided by operations is depreciation and amortization of
approximately $501,000.

                                      -11-

<PAGE>

A working capital reserve of approximately $1,146,000 (2.5% of gross equity) has
been established 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 September 30, 1998 and March 31, 1998,
none of this reserve was used. 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. As of September 30, 1998 and 1997, there has been no
cash distributions from the 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 has negotiated Development Deficit Guarantees with the
development stage Local Partnerships in which it has invested. The Local General
Partners and/or their affiliates have agreed to fund development deficits
through the breakeven dates of each of the ten Local Partnerships.

The Partnership has 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 seven years,
commencing on the break-even date. The gross amount of the Operating Deficit
Guarantees aggregates approximately 2,665,000 as of September 30, 1998.

The Partnership has also negotiated a Rent-Up Guaranty Agreement with one Local
Partnership, in which the Local General Partner agrees to pay liquidated damages
if predetermined occupancy rates are not achieved.

The Development Deficit, Operating Deficit and the Rent-Up Guaranty Agreements
were negotiated to protect the Partnership's interest in the Local Partnerships
and to provide incentive to the Local General Partners to generate positive cash
flow.

The Partnership has invested or committed for investment approximately 80% of
the net proceeds available for investment in ten Local Partnerships, of which
two commenced to generate tax credits in 1996, three have commenced to generate
tax credits in

                                      -12-

<PAGE>

1997 and five are anticipated to commence to generate tax credits in 1998.

Management has been in contact with the one Local Partnership in the southeast
region and does not anticipate any significant increase to repairs and
maintenance due to the effect of Hurricane Georges on the portfolio.

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 will be 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. The tax credits will be attached to the project for a
period of ten years, and will be transferable with the property during the
remainder of such ten-year period. If the General Partner determined that a sale
of a property is warranted, the remaining tax credits would transfer to the new
owner, thereby adding value to the property on the market, which are not
included in the financial statement carrying amount.

Results of Operations

As of September 30, 1998 and 1997, the Partnership had acquired an interest in
ten and six Local Partnerships, respectively, all of which were consolidated at
September 30, 1998 and 1997. The Partnership intends to utilize the net proceeds
of the offering to acquire additional interests in Local Partnerships.

The Partnership's results of operations for the three and six months ended
September 30, 1998 and 1997 consisted primarily of (1) approximately $149,000
and $267,000 and $335,000 and $543,000, respectively, of tax-exempt interest
income earned on funds not currently invested in Local Partnerships and (2) the
results of the Partnership's investment in nine of ten and three of six
consolidated Local Partnerships, respectively.

For the three and six months ended September 30, 1998 as compared to 1997,
rental income and all categories of expenses increased except taxes and the
results of operations are not comparable due to the acquisition, construction
and rent up of properties, and are not reflective of future operations of the
Partnership 

                                      -13-

<PAGE>

due to uncompleted property construction, rent up of properties and
the continued utilization of the net proceeds of the Offering to invest in Local
Partnerships. In addition, interest income will decrease in future periods since
a substantial portion of the proceeds from the Offering will be included in or
released to Local Partnerships. Other income decreased approximately $56,000 and
$138,000 for the three and six months ended September 30, 1998 as compared to
the corresponding periods in 1997 primarily due to a decrease in interest income
as a result of the acquisition of and the release of proceeds to the Local
Partnerships. Taxes decreased approximately $39,000 and $13,000 for the three
and six months ended September 30, 1998 as compared to the corresponding periods
in 1997 primarily due to the reduction of city taxes resulting from low income
housing status at one Local Partnership.

For the three months ended September 30, 1998 and 1997, zero and zero of the
Partnership's ten and six consolidated properties, respectively, completed
construction and were in various stages of rent up. In addition, three and one
of the properties, respectively, had completed construction in a previous fiscal
quarter, but were in various stages of rent up for the three months. Also, for
the three months ended September 30, 1998 and 1997, three and two of the
properties had completed construction and were rented up in a previous fiscal
quarter. For the six months ended September 30, 1998 and 1997, three and three
of the Partnership's ten and six consolidated properties, respectively, had
completed construction in a previous fiscal year, but were in various stages of
rent up for the six months. In addition three and two of the properties,
respectively, had completed construction and were rented up in a previous fiscal
year. As of the end of the six months ended September 30, 1998 and 1997, four
and three of the Partnership's ten and six consolidated properties,
respectively, were still under construction and three and four of the
properties, respectively, had construction loans with commitments for permanent
financing.

Year 2000 Compliance

The Partnership utilizes the computer services of an affiliate of the General
Partner. The affiliate of the General Partner is in the process of upgrading its
computer information systems to be year 2000 compliant and beyond. The Year 2000
compliance issue concerns the inability of a computerized system to accurately
record dates after 1999. The affiliate of the General Partner recently underwent
a conversion of its financial systems applications and is in the process of
upgrading and testing the in house software and hard-

                                      -14-

<PAGE>

ware inventory. The workstations that experienced problems from this process
were corrected with an upgrade patch. The affiliate of the General Partner has
incurred costs of approximately $1,000,000 to date and estimates the total costs
to be approximately $2,000,000. These costs are not being charged to the
Partnership. In regard to third parties, the Partnership's General Partner is in
the process of evaluating the potential adverse impact that could result from
the failure of material service providers to be year 2000 compliant. A detailed
survey and assessment of third party readiness will be sent to material third
parties in the fourth quarter of 1998. The results of the surveys will be
compiled in early 1999. No estimate can be made at this time as to the impact of
the readiness of such third parties. The Partnership's General Partner plans to
have these issues fully assessed by early 1999, at which time the risks
will be addressed and a contingency plan will be implemented if necessary.

                                      -15-

<PAGE>


                           PART II. OTHER INFORMATION

Item 1.  Legal Proceedings - None

Item 2.  Changes in Securities - None

Item 3.  Defaults Upon Senior Securities - None

Item 4.  Submission of Matters to a Vote of Security Holders - None

Item 5.  Other Information - None

Item 6.  Exhibits and Reports on Form 8-K

         (a)   Exhibits

               (4) Form of Amended and Restated Agreement of Limited Partnership
of the Partnership (attached to the Prospectus as Exhibit A)*

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

               (10B) Form of Escrow Agreement between the Partnership and the
Escrow Agent**

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

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

               (27)  Financial Data Schedule (filed herewith)

               *  Incorporated herein by reference to the final Prospectus as
filed pursuant to Rule 424 under the Securities Act of 1933.

               ** Filed as an exhibit to the Registration Statement on Form S-11
of the Partnership (File No. 33-89968) and incorporated herein by reference
thereto.

         (b) Reports on Form 8-K - No reports on Form 8-K were filed during the
quarter.

                                      -16-

<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.,
                          General Partner

Date:  November 11, 1998

                          By: /s/ Alan P. Hirmes
                              -----------------------------------
                                  Alan P. Hirmes,
                                  Senior Vice President
                                  (principal financial officer)

Date:  November 11, 1998

                          By: /s/ Glenn F. Hopps
                              ------------------------------------
                                  Glenn F. Hopps,
                                  Treasurer
                                  (principal accounting officer)