UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549





______________





FORM
10-Q





______________


(Mark
One)





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





For
the quarterly period ended December 31, 2009





OR





o
            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 organization)
            
            (I.R.S.
      Employer 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








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.  þ
Yeso
No








Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files).  o
Yes    o
No








Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting
company.  See the definitions of “large accelerated filer”,
“accelerated filer” and “smaller reporting company” in Rule 12b-2 of the
Exchange Act.








Large
      accelerated filer  o
            
            Accelerated
      filer  oNon-accelerated
      filer  o  (Do
      not check if a smaller reporting company)
            
            Smaller
      reporting company  þ








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













PART I –
FINANCIAL INFORMATION





Item 1.
Financial Statements.





INDEPENDENCE
TAX CREDIT PLUS L.P. IV


AND
SUBSIDIARIES


Condensed
Consolidated Balance Sheets














December
      31,
              2009
            
            March
      31,
              2009*(Unaudited)ASSETSOperating
      assetsProperty
      and equipment - (at cost, net of accumulated depreciation of $22,525,401
      and $21,255,167, respectively)
            
            $
            32,264,417
            
            $
            33,534,651Cash
      and cash equivalents
            
            
            1,250,376
            
            
            1,221,135Cash
      held in escrow
            
            
            2,145,732
            
            
            2,384,087Deferred
      costs (net of accumulated amortization of $719,248 and $700,294,
      respectively)
            
            
            299,428
            
            
            318,382Due
      from local general partners and affiliates (Note 2)
            
            
            402,985
            
            
            381,072Other
      assets
            
            
            417,681
            
            
            381,288Total
      operating assets
            
            $
            36,780,619
            
            $
            38,220,615LIABILITIES
      AND PARTNERS’ CAPITAL (DEFICIT)Operating
      liabilitiesMortgage
      notes payable
            
            $
            24,853,807
            
            $
            25,188,479Accounts
      payable and other liabilities
            
            
            561,423
            
            
            450,137Accrued
      interest payable
            
            
            6,809,200
            
            
            6,301,218Security
      deposit payable
            
            
            314,141
            
            
            313,722Due
      to local general partners and affiliates (Note 2)
            
            
            1,720,451
            
            
            1,814,971Due
      to general partners and affiliates (Note 2)
            
            
            2,423,363
            
            
            2,183,287Total
      operating liabilities
            
            
            36,682,385
            
            
            36,251,814Commitments
      and contingencies (Note 6)Partners’
      capital (deficit):Limited
      partners – 45,844 Beneficial Assignment Certificates (“BACs”) issued and
      outstanding
            
            
            (593,392
            )
            
            1,060,866General
      partners
            
            
            (412,646
            )
            
            (395,936
            )Independence
      Tax Credit Plus L.P. IV total
            
            
            (1,006,038
            )
            
            664,930Noncontrolling
      interests
            
            
            1,104,272
            
            
            1,303,871Total
      partners’ capital
            
            
            98,234
            
            
            1,968,801Total
      liabilities and partners’ capital
            
            $
            36,780,619
            
            $
            38,220,615*  
      Reclassified for comparative purposes.
              
              The
      accompanying notes are an integral part of these condensed consolidated
      financial statements.

















- 2
-








INDEPENDENCE
TAX CREDIT PLUS L.P. IV


AND
SUBSIDIARIES


Condensed
Consolidated Statements of Operations


(Unaudited)














Three
      Months Ended
              December
      31,
            
            Nine
      Months Ended
              December
      31,2009
            
            2008*
            
            2009
            
            2008*Operations:RevenuesRental
      income
            
            $
            1,219,287
            
            $
            1,216,425
            
            $
            3,704,097
            
            $
            3,603,202Other
            
            
            40,947
            
            
            76,848
            
            
            162,485
            
            
            214,795Total
      revenues
            
            
            1,260,234
            
            
            1,293,273
            
            
            3,866,582
            
            
            3,817,997ExpensesGeneral
      and administrative
            
            
            334,529
            
            
            268,382
            
            
            1,069,843
            
            
            921,730General
      and administrative-related parties (Note 2)
            
            
            178,573
            
            
            179,332
            
            
            505,186
            
            
            527,565Repairs
      and maintenance
            
            
            263,670
            
            
            265,495
            
            
            749,739
            
            
            726,494Operating
      and other
            
            
            181,384
            
            
            241,726
            
            
            586,650
            
            
            621,194Real
      estate taxes
            
            
            30,955
            
            
            30,753
            
            
            97,333
            
            
            95,011Insurance
            
            
            58,866
            
            
            74,410
            
            
            188,285
            
            
            224,276Interest
            
            
            347,675
            
            
            352,983
            
            
            1,041,750
            
            
            1,057,776Depreciation
      and amortization
            
            
            417,145
            
            
            527,332
            
            
            1,289,188
            
            
            1,575,945Total
      expenses
            
            
            1,812,797
            
            
            1,940,413
            
            
            5,527,974
            
            
            5,749,991Loss
      from operations
            
            
            (552,563
            )
            
            (647,140
            )
            
            (1,661,392
            )
            
            (1,931,994
            )Loss
      from discontinued operations
            
            
            -
            
            
            (48,748
            )
            
            -
            
            
            (114,451
            )Net
      loss
            
            
            (552,563
            )
            
            (695,888
            )
            
            (1,661,392
            )
            
            (2,046,445
            )Net
      income attributable to noncontrolling interests from
      operations
            
            
            (2,323
            )
            
            (5,778
            )
            
            (9,576
            )
            
            (18,570
            )Net
      loss attributable to noncontrolling interests from discontinued
      operations
            
            
            -
            
            
            482
            
            
            -
            
            
            786Net
      income attributable to noncontrolling interests
            
            
            (2,323
            )
            
            (5,296
            )
            
            (9,576
            )
            
            (17,784
            )Net
      loss attributable to Independence Tax Credit Plus L.P. IV
            
            $
            (554,886
            )
            $
            (701,184
            )
            $
            (1,670,968
            )
            $
            (2,064,229
            )Loss
      from continuing operations – limited partners
            
            $
            (549,337
            )
            $
            (646,389
            )
            $
            (1,654,258
            )
            $
            (1,931,058
            )Loss
      from discontinued operations – limited partners
            
            
            -
            
            
            (47,783
            )
            
            -
            
            
            (112,529
            )Net
      loss – limited partners
            
            $
            (549,337
            )
            $
            (694,172
            )
            $
            (1,654,258
            )
            $
            (2,043,587
            )Number
      of BACs outstanding
            
            
            45,844
            
            
            45,844
            
            
            45,844
            
            
            45,844Loss
      from continuing operations per weighted average BAC
            
            $
            (11.98
            )
            $
            (14.10
            )
            $
            (36.08
            )
            $
            (42.12
            )Loss
      from discontinued operations per weighted average BAC
            
            
            -
            
            
            (1.04
            )
            
            -
            
            
            (2.46
            )Net
      loss per weighted average BAC
            
            $
            (11.98
            )
            $
            (15.14
            )
            $
            (36.08
            )
            $
            (44.58
            )





*  
      Reclassified for comparative purposes.
              
              The
      accompanying notes are an integral part of these condensed consolidated
      financial statements.










- 3
-







INDEPENDENCE
TAX CREDIT PLUS L.P. IV


AND
SUBSIDIARIES


Condensed
Consolidated Statement of Changes in Partners’ Capital (Deficit)


(Unaudited)














Total
            
            Limited
              Partners
            
            General
              Partner
            
            Noncontrolling
              InterestsPartners’
      capital (deficit) – April 1, 2009
            
            $
            1,968,801
            
            $
            1,060,866
            
            $
            (395,936
            )
            $
            1,303,871Net
      income (loss)
            
            
            (1,661,392
            )
            
            (1,654,258
            )
            
            (16,710
            )
            
            9,576Distributions
            
            
            (209,175
            )
            
            0
            
            
            0
            
            
            (209,175
            )Partners’
      capital (deficit) – December 31, 2009
            
            $
            98,234
            
            $
            (593,392
            )
            $
            (412,646
            )
            $
            1,104,272The
      accompanying notes are an integral part of these condensed consolidated
      financial statements.














- 4
-







INDEPENDENCE
TAX CREDIT PLUS L.P. IV


AND
SUBSIDIARIES


Condensed
Consolidated Statements of Cash Flows


(Unaudited)














Nine
      Months Ended
              December
      31,2009
            
            2008*Cash
      flows from operating activities:Net
      loss
            
            $
            (1,661,392
            )
            $
            (2,046,445
            )Adjustments
      to reconcile net loss to net cash provided by (used in) operating
      activities:Depreciation
      and amortization
            
            
            1,289,188
            
            
            1,661,573Loss
      on sale of property
            
            
            -
            
            
            34,242Decrease
      in cash held in escrow
            
            
            253,182
            
            
            65,450Increase
      in other assets
            
            
            (36,393
            )
            
            (244,373
            )Increase
      (decrease) in accounts payable
            
            
            111,286
            
            
            (241,758
            )Increase
      in accrued interest payable
            
            
            507,982
            
            
            462,321Increase
      (decrease) in security deposit payable
            
            
            419
            
            
            (13,207
            )Increase
      in due from general partner and affiliates
            
            
            (21,913
            )
            
            0Decrease
      in due to local general partners and affiliates
            
            
            (95,302
            )
            
            0Increase
      (decrease) in due to general partner and affiliates
            
            
            240,076
            
            
            (635,244
            )Total
      adjustments
            
            
            2,248,525
            
            
            1,089,004Net
      cash provided by (used in) operating activities
            
            
            587,133
            
            
            (957,441
            )Cash
      flows from investing activities:Improvements
      to property and equipment
            
            
            -
            
            
            (170,026
            )(Increase)
      decrease in cash held in escrow
            
            
            (14,827
            )
            
            112,219Proceeds
      from sale of property
            
            
            -
            
            
            303,289Increase
      in due from local general partners and affiliates
            
            
            -
            
            
            (27,000
            )Net
      payments from local general partners and affiliates
            
            
            782
            
            
            2,648Net
      cash (used in) provided by investing activities
            
            
            (14,045
            )
            
            221,130Cash
      flows from financing activities:Repayments
      of mortgage notes
            
            
            (334,672
            )
            
            (277,873
            )Decrease
      in capitalization of consolidated subsidiaries attributable to
      noncontrolling interests
            
            
            (209,175
            )
            
            (156,034
            )Net
      cash used in financing activities
            
            
            (543,847
            )
            
            (433,907
            )Net
      increase (decrease) in cash and cash equivalents
            
            
            29,241
            
            
            (1,170,218
            )Cash
      and cash equivalents at beginning of period
            
            
            1,221,135
            
            
            2,668,101Cash
      and cash equivalents at end of period
            
            $
            1,250,376
            
            $
            1,497,883Summarized
      below are the components of the loss on sale of property:Proceeds
      from sale of investment – net
            
            $
            0
            
            $
            (303,289
            )Decrease
      in other assets
            
            
            0
            
            
            54,000Increase
      in mortgage notes payable
            
            
            0
            
            
            (216,891
            )Increase
      in accounts payable and other liabilities
            
            
            0
            
            
            436,508Decrease
      in due from local general partner and affiliates
            
            
            0
            
            
            63,914*  
      Reclassified for comparative purposes.
              
              The
      accompanying notes are an integral part of these condensed consolidated
      financial statements.












- 5
-


INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Notes to
Condensed Consolidated Financial Statements
 December
31, 2009
 (Unaudited)


NOTE 1 –
General




The
condensed consolidated financial statements, as of December 31, 2009, include
the accounts of Independence Tax Credit Plus L.P. IV (the “Partnership”) and
twelve other limited partnerships (“subsidiary partnerships”, “subsidiaries” or
“Local Partnerships”) owning affordable apartment complexes (“Properties”) that
are eligible for the low-income housing tax credits.  Some of the
Properties may also be eligible for the historic rehabilitation tax
credits.  The general partner of the Partnership is Related
Independence L.L.C., a Delaware limited liability company (the “General
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
partnerships (“Local General Partners”) and to approve certain major operating
and financial decisions, the Partnership has a controlling financial interest in
the subsidiary partnerships.  The Partnership is currently in the
process of disposing of its investments.




For
financial reporting purposes, the Partnership’s third fiscal quarter ends
December 31.  The third quarter for all subsidiaries ends September
30.  Accounts of the subsidiaries have been adjusted for intercompany
transactions from October 1 through December 31.  The Partnership’s
fiscal quarter ends three months after the subsidiaries 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.




The
Partnership has adopted FASB Accounting Standards Codification (“ASC”) Topic
810, Consolidation
(“ASC 810”), which is effective for fiscal year ends beginning after December
15, 2008, to determine the accounting of its noncontrolling interests in its
consolidated financial statements.  In accordance with ASC 810, losses
attributable to minority interests amounted to approximately $3,000 and $10,000
for the three and nine months ended December 31, 2009,
respectively.  Prior to the adoption of ASC 810, losses attributable
to minority interests which exceeded the minority interests’ investment in a
subsidiary partnership were charged to the Partnership.  There were no
such losses for three and nine months ended December 31, 2008.  The
Partnership’s investment in each subsidiary is equal to the respective
subsidiary’s partners’ equity less minority interest capital, if
any.  The weighted average loss per BAC is calculated on the limited
partnership interests.




Certain
information and note disclosures normally included in financial statements
prepared in accordance with accounting principles generally accepted in the
United States of America (“GAAP”) have been omitted or condensed. These
condensed consolidated financial statements should be read in conjunction with
the consolidated financial statements and notes thereto included in the
Partnership’s Annual Report on Form 10-K for the year ended March 31,
2009.




The books
and records of the Partnership are maintained on the accrual basis of accounting
in accordance with GAAP.  In the opinion of the General Partner of the
Partnership, the accompanying unaudited condensed consolidated financial
statements contain all adjustments (consisting only of normal recurring
adjustments) necessary to present fairly the consolidated financial position of
the Partnership as of December 31, 2009, the results of its operations for the
three and nine months ended December 31, 2009 and 2008 and its cash flows for
the nine months ended December 31, 2009 and 2008.  However, the
operating results for the nine months ended December 31, 2009 may not be
indicative of the results for the entire year.




Recent Accounting
Pronouncements




In
January, 2010, the FASB issued under Topic 820, Fair Value Measurements and
Disclosures, ASU 2010-06, “Improving Disclosures about Fair Value
Measurements”. This ASU reports on new disclosure requirements — and
clarifications of existing requirements — under ASC Subtopic 820-10 (originally
issued as FAS 157). The new disclosure requirements apply to interim and annual
reporting periods beginning after December 15, 2009, with one exception: The new
rules regarding purchases, sales, issuances and settlements associated with
Level 3 measurements will be effective for fiscal years beginning after December
15, 2010, and for interim periods within those fiscal years.  The
adoption of this accounting standard is not expected to have a material effect
on the Partnership’s consolidated financial statements.




In
January 2010, the FASB issued under ASC Topic 810, Consolidation, ASU 2010-02,
Accounting and Reporting for
Decreases in Ownership of a Subsidiary – a Scope
Clarification.  The objective of ASU 2010-02 is to address
implementation issues related to changes in ownership provisions. This ASU
clarifies that decreases in ownership provisions within ASC Topic 810-10 applies
to a) a subsidiary or group of assets that is a business or nonprofit activity,
b) a subsidiary that is a business or nonprofit activity that is transferred to
an equity method investee or joint venture or c) an exchange of a group of
assets that constitutes a business or nonprofit activity for a non-controlling
interest in an entity (including equity method investee or joint
venture).  This ASU clarifies that the decrease in ownership guidance
within ASC Topic 810-10 does not apply to the following transactions even if
they involve businesses:  a) sales in substance of real estate and b)
conveyances of oil and gas mineral rights.  This ASU also expands
disclosure requirements for the deconsolidation of a subsidiary or derecognition
of a group of assets within the scope of ASC Topic 810-10.  This ASU
is effective in the period in which an entity adopts Statement of Financial
Accounting Standards (SFAS) No. 160, Non-controlling Interests in
Consolidated Financial Statements. If an entity has previously adopted
SFAS160, the amendments in this update are effective beginning in the first
interim or annual reporting period ending on or after December 15,
2009.  Retrospective application to the first period that an entity
adopted SFAS 160 is required.  The adoption of this accounting
standard did not have a material effect on the Partnership’s consolidated
financial statements.








- 6
-


INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Notes to
Condensed Consolidated Financial Statements
 December
31, 2009
 (Unaudited)
 
 
 In June
2009, the FASB issued under ASC Topic 810, Consolidation, SFAS No. 167,
an amendment to FASB Interpretation 46(R), “Consolidation of Variable Interest
Entities.”  The statement requires an entity to perform an analysis to
determine whether the entity’s variable interest give it a controlling financial
interest in a variable interest entity by rationalizing characteristics that
would give it power to direct the activities of a variable interest entity and
the obligation to absorb losses or the right to receive benefits from the entity
that could potentially be significant to the variable interest
entity.  The statement is effective for years beginning after November
15, 2009 and is not expected to have a material effect on the Partnership’s
consolidated financial statements.




In June
2009, the FASB issued under ASC Topic 860, Transfers and Servicing, SFAS
No. 166, “Accounting for Transfers of Financial Assets”, an amendment to SFAS
No. 140, “Accounting for Transfers and Servicing of Financial Assets and
Extinguishment of Liabilities.”  The statement defines the term
“participating interest” to establish specific conditions for reporting a
transfer of financial assets as a sale and improves financial reporting by
eliminating (a) the exception for qualifying special-purpose entities from
consolidation guidance and (b) the exception that permitted sale accounting for
certain mortgage securitizations when a transferor has not surrendered control
over the transferred financial assets.  The statement is effective for
annual reports for years beginning after November 15, 2009 and is not expected
to have a material effect on the Partnership’s consolidated financial
statements.




On July
1, 2009, the FASB Accounting Standards Codification became the single source of
authoritative accounting principles recognized by the FASB to be applied by
nongovernmental entities in the preparation of financial statements in
conformity with GAAP rules and interpretive releases of the SEC under authority
of federal securities laws are also sources of authoritative GAAP for SEC
registrants. This statement is effective for financial statements issued for
interim and annual periods ending after September 15, 2009. On the effective
date of this statement, all then existing non-SEC accounting and reporting
standards were superseded.  The adoption did not have a significant
impact on the reporting of our financial position, results of operations or cash
flows.




On August
26, 2009, the FASB issued Accounting Standard Update (“ASU”) 2009-05, Measuring Liabilities at Fair
Value, to clarify how entities should estimate the fair value of
liabilities under the ASC Topic 820, Fair Value Measurements and
Disclosures.  The amendments in ASU 2009-05 reduce potential
ambiguity in financial reporting when measuring the fair value of
liabilities.  Therefore, preparers, investors, and other users of
financial statements will have a better understanding of how the fair value of
liabilities was measured, helping to improve consistency in the application of
Topic 820.  The FASB issued ASU 2009-05 as a result of expressed
concern that there may be a lack of observable market information to measure the
fair value of a liability.  For example, in the hypothetical transfer
of an asset subject to a restriction there will be no observable data available
to measure the liability because it is restricted from being
transferred.  This guidance is effective for the first reporting
period (including interim periods) beginning after issuance.  The
adoption of this accounting standard did not have a material effect on the
Partnership’s consolidated financial statements.




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, 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
ASC Topic 360, Property,
Plant, and Equipment (“ASC 360”).  The determination of asset
impairment is a two-step process.  First, management estimates amounts
recoverable through future operations and sale of the property on an
undiscounted basis.  If such estimates are below depreciated cost,
property investments are reduced to estimated fair value (using estimated future
discounted net cash flows) when the property is considered to be impaired and
the depreciated cost exceeds estimated fair value.  Through December
31, 2009, the Partnership has recorded approximately $12,033,000 as a loss on
impairment of assets, all of which was recorded during the year ended March 31,
2009.




In
accordance with ASC 360, the results of discontinued operations are reported as
a separate component of income before extraordinary items on the consolidated
statements of operations.  Discontinued operations include the results
of operations and any gain or loss recognized for Local Partnerships that have
been disposed of or are held for sale.  A gain or loss recognized on
the disposal is disclosed in the notes to the consolidated financial
statements.  Adjustments to amounts previously reported in operations
that are directly related to the disposal of a Local Partnership are
reclassified in the current period as discontinued operations for comparability
purposes.  Assets and liabilities of a Local Partnership that are
classified as held for sale are presented separately in the asset and liability
sections, respectively, of the consolidated balance sheets.  See Note
5 to the consolidated financial statements regarding discontinued
operations.




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 at
December 31, 2009.




Subsequent
Events




The
Partnership has evaluated and disclosed, as applicable, subsequent events
through February 11, 2010, the issuance date of these financial
statements.











- 7
-


INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Notes to
Condensed Consolidated Financial Statements
 December
31, 2009
 (Unaudited)


NOTE 2 –
Related Party Transactions




A)
            Related
      Party Expenses




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 from operations for the three and nine months ended
December 31, 2009 and 2008 were as follows:




Three
      Months Ended
              December
      31,
            
            
            Nine
      Months ended
              December
      31,2009
            
            
            2008
            
            
            2009
            
            
            2008Partnership
      management fees (a)
            
            $
            73,500
            
            
            $
            75,425
            
            
            $
            223,000
            
            
            $
            220,225Expense
      reimbursement (b)
            
            
            46,837
            
            
            
            28,904
            
            
            
            119,391
            
            
            
            79,354Local
      administrative fee (c)
            
            
            9,500
            
            
            
            17,750
            
            
            
            28,500
            
            
            
            53,250Total
      general and administrative-General Partners
            
            
            129,837
            
            
            
            122,079
            
            
            
            370,891
            
            
            
            352,829Property
      management fees incurred to affiliates of thesubsidiary
      partnerships’ general partners (d)
            
            
            48,736
            
            
            
            57,253
            
            
            
            134,295
            
            
            
            174,736Total
      general and administrative-related parties
            
            $
            178,573
            
            
            $
            179,332
            
            
            $
            505,186
            
            
            $
            527,565






The costs
incurred to related parties from discontinued operations for the three and nine
months ended December 31, 2009 and 2008 were as follows:




Three
      Months Ended
              December
      31,
            
            
            Nine
      months Ended
              December
      31,2009
            
            
            2008
            
            
            2009
            
            
            2008Local
      administrative fee (c)
            
            $
            0
            
            
            $
            1,250
            
            
            $
            0
            
            
            $
            3,750Total
      general and administrative-related parties
            
            $
            0
            
            
            $
            1,250
            
            
            $
            0
            
            
            $
            3,750







(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 payments on all
Partnership liabilities have been made other than those owed to the General
Partner.  Partnership management fees owed to the General Partner
amounting to approximately $1,861,000 and $1,638,000 were accrued and unpaid as
of December 31, 2009 and March 31, 2009, respectively and are included in due to
general partners and affiliates on the consolidated balance
sheets.  Without the General Partner’s advances and continued accrual
without payment of certain fees and expense reimbursements, the Partnership
would not be in a position to meet its obligations.




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




(d)           The
Local Partnerships have entered into management agreements with ten managing
agents to manage the Partnership's twelve properties.  Of these, six
managing agents are affiliates of the Local General Partner for six
properties.  The base management fee percentage ranges between 5% and
10% of all rents collected, and the management agreement for one of the
properties (GP Kaneohe Limited Partnership) provides for a monthly payment of
$2,024. Property management fees incurred by the Local Partnerships amounted to
$83,960 and $101,331 for the three months ended December 31, 2009 and 2008,
respectively, and $248,317 and $302,597 for the nine months ended December 31,
2009 and 2008, respectively.  Of these fees, $48,736 and $57,253 and
$134,295 and $174,736 were incurred to affiliates of the subsidiary
partnerships’ general partners (“Local General Partners”) for the three and nine
months ended December 31, 2009 and 2008, respectively, which includes $0 of fees
relating to discontinued operations.











- 8
-


INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Notes to
Condensed Consolidated Financial Statements
 December
31, 2009
 (Unaudited)


B)
            Due
      to Local General Partners and
Affiliates




The
amounts due to Local General Partners and affiliates from operating liabilities
consist of the following:




December
      31,
              2009
            
            
            March
      31,
              2009Development
      fee payable
            
            $
            1,587,066
            
            
            $
            1,586,284Construction
      costs payable
            
            
            50,000
            
            
            
            50,000Operating
      advances
            
            
            46,000
            
            
            
            46,000Management
      and other fees
            
            
            37,385
            
            
            
            132,687$
            1,720,451
            
            
            $
            1,814,971







Due from
Local General Partners and affiliates from operating liabilities consists of the
following:




December
      31,
              2009
            
            
            March
      31,
              2009Local
      general partner loan receivable
            
            $
            402,985
            
            
            $
            381,072







NOTE 3 –
Fair Value Measurements




The
Partnership has categorized its financial assets and liabilities based upon the
fair value hierarchy specified by ASC Topic 820, Fair Value Measurements and
Disclosures (“ASC 820”). This standard defines fair value, provides guidance for
measuring fair value and requires certain disclosures.  This standard
does not require any new fair value measurements, but discusses valuation
techniques, such as the market approach (comparable market prices), the income
approach (present value of future income or cash flow), and the cost approach
(cost to replace the service capacity of an asset or replacement
cost).  This standard provides for a fair value hierarchy that
prioritizes the inputs to valuation techniques used to measure fair value into
three broad levels.  The following is a brief description of those
three levels:




Level
      1:
            Observable
      inputs such as quoted prices (unadjusted) in active markets for identical
      assets or liabilities.




Level
      2:
            Inputs
      other than quoted prices that are observable for the asset or liability,
      either directly or indirectly.  These include quoted prices for
      similar assets or liabilities in active markets and quoted prices for
      identical or similar assets or liabilities in markets that are not
      active.




Level
      3:
            Unobservable
      inputs that reflect the Partnership’s own
  assumptions.






The
estimated fair value of financial instruments has been determined using
available market information or other appropriate valuation
methodologies.  However, considerable judgment is required in
interpreting market data to develop estimates of fair
value.  Consequently, the estimates are not necessarily indicative of
the amounts that could be realized or would be paid in a current market
exchange.  The following are financial instruments for which the
Partnership’s estimate of fair value differs from the carrying
amounts:




At
      December 31, 2009
            
            At
      March 31, 2009Carrying
              Amount
            
            Fair
      Estimated
              Value
            
            Carrying
              Amount
            
            Fair
      Estimated
              ValueLIABILITIES:Mortgage
      notes
            
            $
            24,853,807
            
            
            $
            15,653,643
            
            
            $
            25,188,479
            
            
            $
            15,101,746







Fair
value has been estimated using Level 3 inputs.




For the
mortgage notes, fair value is calculated using present value cash flow models
based on a discount rate. It was determined that the Tender Option Bond market,
through which these bonds have been securitized in the past, continued to see a
dramatic slowdown with limited liquidity and significantly reduced transaction
levels.  To assist in valuing these notes, the Partnership held
separate discussions with various third party investment banks who are leaders
in the municipal bond business.  The discussions produced assumptions
that were based on market conditions as well as the credit quality of the
underlying partnerships, which held the mortgage notes, to determine what
discount rates to utilize.











- 9
-


INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Notes to
Condensed Consolidated Financial Statements
 December
31, 2009
 (Unaudited)


NOTE 4 –
Sale of Properties




The
Partnership is currently in the process of disposing all its
investments.




As of
December 31, 2009, the Partnership’s limited partnership interest in one Local
Partnership and the property and the related assets and liabilities of one Local
Partnership have been sold.  There can be no assurance as to when the
Partnership will dispose of its remaining investments or the amount of proceeds
which may be received.  However, based on the historical operating
results of the Local Partnerships and the current economic conditions, including
changes in tax laws, it is unlikely that the proceeds from such sales received
by the Partnership will be sufficient to return to the limited partners their
original investments.  All gains and losses on sales are included in
discontinued operations.




On
December 31, 2008, the Partnership sold its limited partnership interest in
BX-8A Team Associates, L.P. (“BX-8A”) to an unaffiliated third party purchaser
for a sales price of $100,000.  The Partnership received $40,000 from
this sale after the repayment of other liabilities of approximately
$60,000.  The sale resulted in a gain of approximately $102,000
resulting from the write-off of the deficit basis in the Local Partnership of
approximately $62,000 at the date of the sale and the $40,000 cash received from
the sale, which was recorded during the year ended March 31,
2009.  The sale also resulted in a write-off of operating advances of
approximately $902,000 owed to the Partnership.  In addition, the sale
resulted in a non-cash contribution to the Local Partnership from the General
Partner of approximately $5,000 as a result of the write-off of fees owed by the
Local Partnership to an affiliate of the General Partner.




On
September 5, 2007, the property and the related assets and liabilities of
Westminster Park Plaza, a California L.P. (“Westminster”) were sold to an
affiliate of the Local General Partner for a sales price of
$14,070,228.  The Partnership received $2,816,891 as a distribution
from this sale after the repayment of mortgages, other liabilities and closing
costs of approximately $11,253,000.  The sale resulted in a gain of
approximately $5,032,000 resulting from the write-off of the deficit basis in
the property at the date of sale, which was recorded during the year ended March
31, 2008.  An adjustment reducing the gain by approximately $34,000
was recorded during the quarter ended December 31, 2008, resulting in an overall
gain of approximately $4,998,000.






NOTE 5 –
Discontinued Operations




The
following table summarizes the results of operations of the Local Partnerships
that are classified as discontinued operations.  For the three and
nine months ended December 31, 2009, there were no properties classified as
discontinued operations on the condensed consolidated financial
statements.  For the three and nine months ended December 31, 2008,
BX-8A, which was sold during the year ended March 31, 2009, and Westminster,
which was sold during the year ended March 31, 2008, were classified as
discontinued operations on the condensed consolidated statement of
operations.











- 10
-


INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Notes to
Condensed Consolidated Financial Statements
 December
31, 2009
 (Unaudited)


Consolidated
Statements of Discontinued Operations:




Three
      Months
              Ended
              December
      31,
              2008
            
            
            Nine
      Months
              Ended
              December
      31,
              2008RevenuesRental
      income
            
            $
            82,155
            
            
            $
            243,197Other
            
            
            (2,832
            )
            
            
            580Loss
      on sale of property (Note 4)
            
            
            -
            
            
            
            (34,242
            )Total
      revenues
            
            
            79,323
            
            
            
            209,535ExpensesGeneral
      and administrative
            
            
            33,105
            
            
            
            80,082General
      and administrative-related parties (Note 2)
            
            
            1,250
            
            
            
            3,750Repairs
      and maintenance
            
            
            46,628
            
            
            
            57,493Operating
      and other
            
            
            13,183
            
            
            
            58,652Insurance
            
            
            (1,000
            )
            
            
            16,000Interest
            
            
            7,362
            
            
            
            22,381Depreciation
      and amortization
            
            
            27,543
            
            
            
            85,628Total
      expenses
            
            
            128,071
            
            
            
            323,986Loss
      before noncontrolling interests
            
            
            (48,748
            )
            
            
            (114,451
            )Noncontrolling
      interests in loss of subsidiaries from discontinued
    operations
            
            
            482
            
            
            
            786Net
      loss from discontinued operations
            
            $
            (48,266
            )
            
            $
            (113,665
            )Net
      loss – limited partners from discontinued operations
            
            $
            (47,783
            )
            
            $
            (112,529
            )Number
      of BACs outstanding
            
            
            45,844
            
            
            
            45,844Net
      loss from discontinued operations per weighted average BAC
            
            $
            (1.04
            )
            
            $
            (2.46
            )









Cash
Flows from Discontinued Operations:




Nine
      Months
              Ended
              December
      31,
              2008*Net
      cash used in operating activities
            
            $
            (75,004
            )Net
      cash used in investing activities
            
            $
            (374,534
            )Net
      cash provided by financing activities
            
            $
            13,013*  
      Reclassified for comparative purposes.







NOTE 6 –
Commitments and Contingencies




There
have been no material changes and/or additions to the disclosures regarding the
subsidiary partnerships which were included in the Partnership’s Annual Report
on Form 10-K for the fiscal year ended March 31, 2009.




Property Management
Fees




The Local
Partnerships have entered into management agreements with ten managing agents to
manage the Partnership's twelve properties.  The base management fee
percentage ranges between 5% and 10% of all rents collected, and the management
agreement for one of the properties (GP Kaneohe Limited Partnership) provides
for a monthly payment of $2,024.  Property management fees incurred by
the Local Partnerships amounted to $83,960 and $101,331 for the three months
ended December 31, 2009 and 2008, respectively, and $248,317 and $302,597 for
the nine months ended December 31, 2009 and 2008, respectively.











- 11
-


INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Notes to
Condensed Consolidated Financial Statements
 December
31, 2009
 (Unaudited)


Other




The
Partnership is subject to risks incident to potential losses arising from the
management and ownership of real estate. The Partnership can also be affected by
poor economic conditions generally; however no more than 25% of the properties
are located in any single state. The properties are concentrated in New Jersey
(25%), Kentucky (17%) and California (17%). There are also substantial risks
associated with owning properties receiving government assistance, for example
the possibility that Congress may not appropriate funds to enable the U.S.
Department of Housing and Urban Development (“HUD”) to make rental assistance
payments. HUD also restricts annual cash distributions to partners based on
operating results and a percentage of the owners’ equity
contribution.  As of December 31, 2009, there were three Local
Partnerships subsidized by HUD.  The Partnership cannot sell or
substantially liquidate its investments in subsidiary partnerships during the
period that the subsidy agreements are in existence without HUD’s approval.
Furthermore there may not be market demand for apartments at full market rents
when the rental assistance contract expires.




Tax
Credits are attached to the Property for a period of ten years, and are
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, and some have expired, at various times from
December 31, 2001 through December 31, 2010 with respect to the Local
Partnerships depending upon when the Credit Period
commenced.  However, each Local Partnership must continue to comply
with the Tax Credit requirements until the end of the Compliance Period in order
to avoid recapture of the Tax Credits.  The Compliance Periods will
continue through December 31, 2014 with respect to the Properties depending upon
when the Compliance Period commenced.




Except as
described above, 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 not be affected. However,
the geographic diversification of the portfolio may not protect against a
general downturn in the national economy.










- 12
-







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




Liquidity and Capital
Resources




The
Partnership originally invested approximately $37,555,000 (not including
acquisition fees of approximately $1,771,000) of net proceeds in fourteen Local
Partnerships of which, as of December 31, 2009, approximately $796,000 remains
to be paid to the Local Partnerships (including approximately $341,000 being
held in escrow) as certain benchmarks, such as occupancy level, must be attained
prior to the release of the funds.  During the nine months ended
December 31, 2009, payments of approximately $25,000 were made to the Local
Partnerships.  As of December 31, 2009, the Partnership’s limited
partnership interest in one Local Partnership and the property and the related
assets and liabilities of another Local Partnership have been sold (see Item 1,
Note 4).




Short-Term




The
Partnership’s primary sources of funds include:  (i) working capital
reserves, exclusive of Local Partnerships’ working capital; (ii) interest earned
on the working capital reserves; (iii) cash distributions from operations of the
Local Partnerships; and (iv) sales proceeds and distributions.  Such
funds, although minimal (other than possible sales proceeds and sales
distributions), are available to meet the obligations of the
Partnership.  The Partnership does not anticipate providing cash
distributions to BAC holders in circumstances other than refinancing or
sales.  During the nine months ended December 31, 2009 and 2008,
distributions from operations of the Local Partnerships amounted to
approximately $2,000 and $20,000, respectively.  Additionally, during
the nine months ended December 31, 2009 and 2008, the Partnership received
approximately $0 and $303,000, respectively, of distributions from the sale of
Local Partnerships.




For the
nine months ended December 31, 2009, cash and cash equivalents of the
Partnership and its consolidated Local Partnerships increased approximately
$29,000.  This increase was due to net cash provided by operating
activities of approximately $587,000 and net payments from local general
partners and affiliates of approximately $1,000, which exceeded repayment of
mortgage notes of approximately $335,000, an increase in cash held in escrow
relating to investing activities of approximately $15,000 and a decrease in
capitalization of consolidated subsidiaries attributable to noncontrolling
interests of approximately $209,000.  Included in the adjustments to
reconcile the net loss to net cash provided by operating activities is
depreciation and amortization in the amount of approximately
$1,289,000.




Total
expenses for the three and nine months ended December 31, 2009 and 2008,
excluding depreciation and amortization, interest and general and
administrative-related parties, totaled $869,404 and $880,766 and $2,691,850 and
$2,588,705, respectively.




Accounts
payable totaled $561,423 and $450,137 as of December 31, 2009 and March 31,
2009, respectively.  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.  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 not including fees
owed to the General Partner.




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




A working
capital reserve at the Partnership level of approximately $201,000, exclusive of
the Local Partnership’s working capital, remained unused at December 31,
2009.  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 not including fees owed to the General Partner.




Long-Term




Partnership
management fees owed to the General Partner amounting to approximately
$1,861,000 and $1,638,000 were accrued and unpaid as of December 31, 2009 and
March 31, 2009, respectively.  Unpaid partnership management fees for
any year are accrued without interest and will be payable only to the extent of
available funds after payments on all Partnership liabilities have been made
other than those owed to the General Partner.  Without the General
Partner’s advances and continued accrual without payment of certain fees and
expense reimbursement, the Partnership would not be in a position to meet its
obligations.




Accrued
interest payable totaled $6,809,200 and $6,301,218 as of December 31, 2009 and
March 31, 2009, respectively. Accrued interest payable 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 and which have been accumulating since the
Partnership’s investment in the respective Local Partnership) will be made from
future refinancing or sales proceeds of the respective Local
Partnerships.  Furthermore, 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.




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, such as fuel, utilities, and labor.




The
Partnership’s investment in Local Partnerships 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.  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.








- 13
-






Tax
Credits are attached to the Property for a period of ten years, and are
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, and some have expired, at various times from
December 31, 2001 through December 31, 2010 with respect to the Local
Partnerships depending upon when the Credit Period
commenced.  However, each Local Partnership must continue to comply
with the Tax Credit requirements until the end of the Compliance Period in order
to avoid recapture of the Tax Credits.  The Compliance Periods will
continue through December 31, 2014 with respect to the Properties depending upon
when the Compliance Period commenced.




Off-Balance Sheet
Arrangements


The
Partnership has no off-balance sheet arrangements.




Tabular Disclosure of
Contractual Obligations


The
Partnership disclosed in Item 7 of the Partnership’s Annual Report on Form 10-K
for the year ended March 31, 2009, the Partnership’s commitments to make future
payments under its debt agreements and other contractual
obligations.  There are no material changes to such disclosure or
amounts as of December 31, 2009.




Critical Accounting Policies
and Estimates




In
preparing the condensed 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 condensed
consolidated financial statements. The summary should be read in conjunction
with the more complete discussion of the Partnership’s accounting policies
included in Item 8, Note 2 to the consolidated financial statements which are
included in the Partnership’s Annual Report on Form 10-K for the year ended
March 31, 2009.




Fair Value
Measurements




The
Partnership has categorized its financial assets and liabilities based upon the
fair value hierarchy specified by FASB Accounting Standards Codification (“ASC”)
Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). This standard
defines fair value, provides guidance for measuring fair value and requires
certain disclosures.  This standard does not require any new fair
value measurements, but discusses valuation techniques, such as the market
approach (comparable market prices), the income approach (present value of
future income or cash flow), and the cost approach (cost to replace the service
capacity of an asset or replacement cost).  This standard provides for
a fair value hierarchy that prioritizes the inputs to valuation techniques used
to measure fair value into three broad levels.  The following is a
brief description of those three levels:




Level
      1:
            Observable
      inputs such as quoted prices (unadjusted) in active markets for identical
      assets or liabilities.




Level
      2:
            Inputs
      other than quoted prices that are observable for the asset or liability,
      either directly or indirectly.  These include quoted prices for
      similar assets or liabilities in active markets and quoted prices for
      identical or similar assets or liabilities in markets that are not
      active.




Level
      3:
            Unobservable
      inputs that reflect the Partnership’s own
  assumptions.




The
estimated fair value of financial instruments has been determined using
available market information or other appropriate valuation
methodologies.  However, considerable judgment is required in
interpreting market data to develop estimates of fair
value.  Consequently, the estimates are not necessarily indicative of
the amounts that could be realized or would be paid in a current market
exchange.  The following are financial instruments for which the
Partnership’s estimate of fair value differs from the carrying
amounts:




At
      December 31, 2009
            
            At
      March 31, 2009Carrying
              Amount
            
            Fair
      Estimated
              Value
            
            Carrying
              Amount
            
            Fair
      Estimated
              ValueLIABILITIES:Mortgage
      notes
            
            $
            24,853,807
            
            
            $
            15,653,643
            
            
            $
            25,188,479
            
            
            $
            15,101,746







Fair
value has been estimated using Level 3 inputs.




For the
mortgage notes, fair value is calculated using present value cash flow models
based on a discount rate. It was determined that the Tender Option Bond market,
through which these bonds have been securitized in the past, continued to
see  a dramatic slowdown with limited liquidity and significantly
reduced transaction levels,  To assist in valuing these notes the
partnership held separate discussions with various third party investment banks
who are leaders in the municipal bond business.  The discussions
produced assumptions that were based on market conditions as well as the credit
quality of the underlying partnerships, which held the mortgage notes, to
determine what discount rates to utilize.




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, 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
ASC Topic 360, Property,
Plant, and Equipment (“ASC 360”).  The determination of asset
impairment is a two-step process.  First, management estimates amounts
recoverable through future operations and sale of the property on an
undiscounted basis.  If such estimates are below depreciated cost,
property investments are reduced to estimated fair value (using estimated future
discounted net cash flows) when the property is considered to be impaired and
the depreciated cost exceeds estimated fair value.










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In
accordance with ASC 360, the results of discontinued operations are reported as
a separate component of income before extraordinary items on the consolidated
statements of operations.  Discontinued operations include the results
of operations and any gain or loss recognized for Local Partnerships that have
been disposed of or are held for sale.  A gain or loss recognized on
the disposal is disclosed in the notes to the consolidated financial
statements.  Adjustments to amounts previously reported in operations
that are directly related to the disposal of a Local Partnership are
reclassified in the current period as discontinued operations for comparability
purposes.  Assets and liabilities of a Local Partnership that are
classified as held for sale are presented separately in the asset and liability
sections, respectively, of the consolidated balance sheets.  See Note
5 to the consolidated financial statements regarding discontinued
operations.




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 at
December 31, 2009.




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.




Results of
Operations




The
results of operations for the three and nine months ended December 31, 2009 and
2008 continued to be primarily in the form of rental income with corresponding
expenses divided among operations, depreciation and mortgage interest, excluding
the results of its discontinued operations which are not reflected in the
following discussion (see Item 1, Note 5).




Rental
income increased less than 1% and approximately 3% for the three and nine months
ended December 31, 2009, as compared to the corresponding periods in 2008,
primarily due to increases in rental rates at the Local
Partnerships.




Other
income decreased approximately $36,000 and $52,000 for the three and nine months
ended December 31, 2009 as compared to the corresponding periods in 2008,
primarily due to income recognized in 2008 relating to a write-off of
receivables from old tenants at one Local Partnership, a decrease in laundry and
vending machine income at a second Local Partnership and lower interest earned
on a lower cash balance being invested at the Partnership level.




Total
expenses, excluding general and administrative, operating, insurance, and
depreciation and amortization remained fairly consistent, with a decrease of
less than 1% for the three and nine months ended December 31, 2009 as compared
to the corresponding periods in 2008.




General
and administrative expenses increased approximately $66,000 and $148,000 for the
three and nine months ended December 31, 2009, as compared to the corresponding
periods in 2008, primarily due to an increase in maintenance, security and
office salaries at one Local Partnership, increase in loss on collection of
receivables at a second Local Partnership and an increase in printing fees at
the Partnership level.




Operating
expenses decreased approximately $60,000 for the three months ended December 31,
2009 as compared to the corresponding period in 2008, primarily due to an
overall decrease in utility costs at the Local Partnerships.




Insurance
decreased approximately $16,000 and $36,000 for the three and nine months ended
December 31, 2009 as compared to the corresponding periods in 2008, primarily
due to a change in insurance providers at one Local Partnership.




Depreciation
and amortization decreased approximately $110,000 and $287,000 for the three and
nine months ended December 31, 2009 as compared to the corresponding periods in
2008, primarily due to the reduction in carrying amount relating to impairment
of assets during the year ended March 31, 2009 at five Local
Partnerships.




Item
3.  Quantitative and Qualitative Disclosures about Market
Risk.




The
Partnership has mortgage notes that are payable in aggregate monthly
installments including principal and interest at rates varying from 0% to 8.46%
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 disclosed in Item 8, Note 3 to the
consolidated financial statements in the Partnership’s Annual Report on Form
10-K for the year ended March 31, 2009, as well as in Item 2, the fair value of
the mortgage notes payable.  There are no material changes to such
disclosure amounts as of December 31, 2009.




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




Item
4T.  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, have 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.  Based on such
evaluation, such officers have concluded that, as of the end of such period, the
Partnership’s disclosure controls and procedures are effective.










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(b)           Management’s Annual Report on
Internal Control over Financial Reporting.Our management is
responsible for establishing and maintaining adequate internal control over
financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and
15d-15(f).  In evaluating the Partnership’s internal control over
financial reporting, management has adopted the framework in Internal
Control-Integrated Framework issued by the Committee of Sponsoring organizations
of the Treadway Commission (the “COSO Framework”).  Under the
supervision and with the participation of our management, including the Chief
Executive Officer and Chief Financial Officer of the General Partner, the
Partnership conducted an evaluation of the effectiveness of its internal control
over financial reporting as of March 31, 2009.  The Partnership’s
internal control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external reporting purposes in
accordance with generally accepted accounting principles.  Internal
control over financial reporting includes those policies and procedures that (1)
pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the
Partnership; (2) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with
generally accepted accounting principles, and that receipts and expenditures of
the Partnership are being made only in accordance with authorizations of
management and directors of the Partnership; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition,
use, or disposition of the Partnership’s assets that could have a material
effect on the financial statements.  However, because of inherent
limitations, internal control over financial reporting may not prevent or detect
misstatements.  Also, projections of any evaluation of effectiveness
to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.




Based on
management’s evaluation under the COSO Framework, it has concluded that the
Partnership’s internal control over financial reporting, was, as of March 31,
2009, (1) effective at the Partnership level, in that they provide reasonable
assurance that information required to be disclosed by the Partnership in the
reports it files or submits under the Securities Exchange Act is recorded,
processed, summarized and reported within the time periods specified in the
SEC's rules and forms and (2) ineffective at the subsidiary level due to certain
control deficiencies noted in the audit reports for such
subsidiaries.  The General Partner does not have control over the
internal controls at the subsidiary level.  Management believes they
have sufficient controls at the Partnership level to mitigate these
deficiencies, and such deficiencies do not have a material impact on the
consolidated financial statements.




(c)           Changes in Internal Controls over Financial
Reporting.Except as noted in (b) above, during the period
ended December 31, 2009, 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.











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PART II.
OTHER INFORMATION











Item
      1.
            Legal
      Proceedings. – NoneItem
      1A.
            Risk
      Factors. – No changesItem
      2.
            Unregistered
      Sales of Equity Securities and Use of Proceeds. – NoneItem
      3.
            Defaults
      upon Senior Securities. – NoneItem
      4.
            Submission
      of Matters to a Vote of Security Holders. – NoneItem
      5.
            Other
      Information. – NoneItem
      6.
            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**(31.1)
            Certification Pursuant to Rule 13a-14(a) or Rule
      15d-14(a).(31.2)
            Certification Pursuant to Rule 13a-14(a) or Rule
      15d-14(a).(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).*
            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.
















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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 PartnerDate:
            February 11, 2010
            
            
            
            By:
            /s/ Robert L. LevyRobert
      L. LevyChief
      Financial Officer,
              Principal
      Accounting Officer and DirectorDate:
            February 11, 2010
            
            
            
            By:
            /s/ Andrew J. WeilAndrew
      J. WeilPresident
      and Chief Executive Officer












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