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, 2006


                                       OR


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



                         COMMISSION FILE NUMBER 0-17015

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



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

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



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


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


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

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


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



<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
                                                                        September 30,     March 31,
                                                                            2006            2006
                                                                        ------------    ------------
                                                                         (Unaudited)      (Audited)
<S>                                                                     <C>             <C>
                                     ASSETS


Property and equipment - at cost, net of accumulated depreciation of
  $20,273,097 and $19,086,200, respectively                             $ 61,198,310    $ 62,385,207
Cash and cash equivalents                                                  1,433,570       1,486,123
Cash held in escrow                                                        3,459,535       3,231,430
Deferred costs, net of accumulated amortization of $611,512 and
  $584,586, respectively                                                     572,987         599,913
Other assets                                                                 516,513         540,696
                                                                        ------------    ------------
Total assets                                                            $ 67,180,915    $ 68,243,369
                                                                        ============    ============


                   LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)


Liabilities:
Mortgage notes payable                                                  $ 35,299,376    $ 35,549,933
Accounts payable and other liabilities                                    10,081,170       9,675,759
Due to local general partners and affiliates                               1,621,253       1,614,776
Due to general partner and affiliates                                      3,521,908       3,261,432
                                                                        ------------    ------------
Total liabilities                                                         50,523,707      50,101,900
                                                                        ------------    ------------

Minority interest                                                          1,860,387       1,870,135
                                                                        ------------    ------------

Partners' capital (deficit):
Limited partners (45,844 BACs issued and outstanding)                     15,056,388      16,516,156
General partner                                                             (259,567)       (244,822)
                                                                        ------------    ------------
Total partners' capital (deficit)                                         14,796,821      16,271,334
                                                                        ------------    ------------
Total liabilities and partners' capital (deficit)                       $ 67,180,915    $ 68,243,369
                                                                        ============    ============
</TABLE>


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

                                       2
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                 Condensed Consolidated Statements of Operations
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                          Three Months Ended              Six Months Ended
                                                             September 30,                 September 30,
                                                      --------------------------    --------------------------
                                                          2006           2005          2006           2005
                                                      -----------    -----------    -----------    -----------
<S>                                                   <C>            <C>            <C>            <C>
Revenues
Rental income                                         $ 1,497,655    $ 1,456,498    $ 2,961,632    $ 2,929,187
Other income                                               80,309         73,309        186,555        159,813
                                                      -----------    -----------    -----------    -----------
Total revenues                                          1,577,964      1,529,807      3,148,187      3,089,000
                                                      -----------    -----------    -----------    -----------

Expenses
General and administrative                                399,025        365,519        797,127        820,201
General and administrative-related parties (Note 2)       165,625        216,869        352,740        412,048
Repairs and maintenance                                   285,153        251,913        545,917        446,269
Operating and other                                       217,173        214,069        468,583        396,556
Taxes                                                      45,788         46,956         90,474         92,634
Insurance                                                  95,005         96,324        189,539        195,312
Financial, principally interest                           488,903        481,507        974,246        984,525
Depreciation and amortization                             607,715        611,365      1,213,823      1,219,453
                                                      -----------    -----------    -----------    -----------
Total expenses                                          2,304,387      2,284,522      4,632,449      4,566,998
                                                      -----------    -----------    -----------    -----------

Loss before minority interest                            (726,423)      (754,715)    (1,484,262)    (1,477,998)
Minority interest in loss of subsidiaries                     198          9,623          9,749         17,340
                                                      -----------    -----------    -----------    -----------
Net loss                                              $  (726,225)   $  (745,092)   $(1,474,513)   $(1,460,658)
                                                      ===========    ===========    ===========    ===========

Net loss - limited partners                           $  (718,963)   $  (737,641)   $(1,459,768)   $(1,446,051)
                                                      ===========    ===========    ===========    ===========

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

Net loss per weighted average BAC                     $    (15.68)   $    (16.09)   $    (31.84)   $    (31.54)
                                                      ===========    ===========    ===========    ===========
</TABLE>


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

                                       3
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
   Condensed Consolidated Statement of Changes in Partners' Capital (Deficit)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                     Limited          General
                                                       Total         Partners         Partner
                                                   ------------    ------------    ------------
<S>                                                <C>             <C>             <C>
Partners' capital (deficit) - April 1, 2006        $ 16,271,334    $ 16,516,156    $   (244,822)

Net loss                                             (1,474,513)     (1,459,768)        (14,745)
                                                   ------------    ------------    ------------

Partners' capital (deficit) - September 30, 2006   $ 14,796,821    $ 15,056,388    $   (259,567)
                                                   ============    ============    ============
</TABLE>


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

                                       4
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                       Six Months Ended
                                                                                         September 30,
                                                                                  --------------------------
                                                                                    2006            2005
                                                                                  -----------    -----------
<S>                                                                               <C>            <C>
Cash flows from operating activities:
Net loss                                                                          $(1,474,513)   $(1,460,658)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization                                                       1,213,823      1,219,453
Minority interest in loss of subsidiary partnerships                                   (9,749)       (17,340)
Increase in cash held in escrow                                                      (238,886)      (293,743)
Decrease (increase) in other assets                                                    24,183        (34,131)
Increase in accounts payable and other liabilities                                    405,411        512,436
Decrease in due to local general partners and affiliates                               (3,519)        (9,279)
Increase in due to general partner and affiliates                                     260,476        272,557
                                                                                  -----------    -----------

Net cash provided by operating activities                                             177,226        189,295
                                                                                  -----------    -----------

Cash flows from investing activities:
Decrease in cash held in escrow                                                        10,781         43,337
Increase (decrease) in due to local general partners and affiliates                     9,996        (18,145)
                                                                                  -----------    -----------

Net cash provided by investing activities                                              20,777         25,192
                                                                                  -----------    -----------

Cash flows from financing activities:
Repayments of mortgage notes                                                         (250,556)      (228,416)
Decrease in capitalization of consolidated subsidiaries attributable to
  minority interest                                                                         0        (51,000)
                                                                                  -----------    -----------

Net cash used in financing activities                                                (250,556)      (279,416)
                                                                                  -----------    -----------

Net decrease in cash and cash equivalents                                             (52,553)       (64,929)
Cash and cash equivalents at beginning of period                                    1,486,123      1,663,931
                                                                                  -----------    -----------
Cash and cash equivalents at end of period                                        $ 1,433,570    $ 1,599,002
                                                                                  ===========    ===========

Supplemental disclosure of cash flow information:
Cash paid during period for interest*                                             $   480,686    $   549,979
                                                                                  ===========    ===========
</TABLE>


*    Cash paid for interest  during the six months ended  September 30, 2005 has
     been  restated.  The  accompanying  notes  are an  integral  part of  these
     condensed consolidated financial statements.

                                       5
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                               September 30, 2006
                                   (Unaudited)


Note 1 - General

The  condensed   consolidated  financial  statements  include  the  accounts  of
Independence  Tax Credit Plus L.P. IV (the  "Partnership")  and  fourteen  other
limited  partnerships  ("subsidiary  partnerships",   "subsidiaries"  or  "Local
Partnerships")  owning affordable  apartment  complexes  ("Properties") that are
eligible  for  the  low-income  housing  tax  credit,  some of  which  apartment
complexes may also be eligible for the historic  rehabilitation  tax credit. 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  and to approve  certain major operating
and financial decisions, the Partnership has a controlling financial interest in
the subsidiary partnerships.

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.

Increase   (decrease)  in  the   capitalization  of  consolidated   subsidiaries
attributable to minority interest arises from cash  contributions  from and cash
distributions to the minority interest partners.

Losses  attributable to minority  interests that exceed the minority  interests'
investment  in a subsidiary  have been charged to the  Partnership.  Such losses
aggregated approximately $3,000 and $1,000 and $5,000 and $3,000 for each of the
three and six  months  ended  September  30,  2006 and 2005,  respectively.  The
Partnership's   investment  in  each  subsidiary  is  equal  to  the  respective
subsidiary's  partners'  equity  less  minority  interest  capital,  if any.  In
consolidation,   all   subsidiary   partnership   losses  are  included  in  the
Partnership's  capital account except for losses allocated to minority  interest
capital.

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   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, 2006.

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
condensed consolidated 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, 2006, its results of operations
for the three and six  months  ended  September  30,  2006 and 2005 and its cash
flows  for the six  months  ended  September  30,  2006 and 2005.  However,  the
operating  results  for the six  months  ended  September  30,  2006  may not be
indicative of the results for the entire year.


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  for the three  and six  months  ended
September 30, 2006 and 2005 were as follows:
<TABLE>
<CAPTION>
                                                          Three Months Ended     Six Months Ended
                                                            September 30,        September 30,
                                                         -------------------   -------------------
                                                           2006       2005       2006       2005
                                                         --------   --------   --------   --------
<S>                                                      <C>        <C>        <C>        <C>
Partnership management fees (a)                          $ 84,280   $ 84,280   $168,560   $168,560
Expense reimbursement (b)                                  16,478     73,312     53,578    124,251
Local administrative fee (c)                               19,000     15,000     38,000     30,000
                                                         --------   --------   --------   --------
Total general and administrative-General Partner          119,758    172,592    260,138    322,811
Property management fees incurred to affiliates of the
  subsidiary partnerships' general partners (d)            45,867     44,277     92,602     89,237
                                                         --------   --------   --------   --------
Total general and administrative-related parties         $165,625   $216,869   $352,740   $412,048
                                                         ========   ========   ========   ========
</TABLE>


 (a) The General  Partner is entitled to receive a partnership  management  fee,
after payment of all Partnership expenses,  which together with the annual local
administrative  fees  will not  exceed a maximum  of 0.5% per annum of  invested
assets (as defined in the Partnership Agreement),  for administering the affairs
of  the  Partnership.  Subject  to the  foregoing  limitation,  the  partnership
management fee will be determined by the General  Partner in its sole discretion
based  upon its  review of the  Partnership's  investments.  Unpaid  partnership
management  fees for any  year  will be  accrued  without  interest  and will be
payable 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).

                                       6
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                               September 30, 2006
                                   (Unaudited)


Partnership   management  fees  owed  to  the  General   Partner   amounting  to
approximately  $2,472,000 and $2,304,000 were accrued and unpaid as of September
30, 2006 and March 31, 2006, respectively.

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

(c)  Independence  SLP IV L.P.,  a special  limited  partner  of the  subsidiary
partnerships,  is entitled to receive a local administrative fee of $0 to $5,000
per year from each subsidiary partnership.

(d) Property  management  fees  incurred by the Local  Partnerships  amounted to
$98,829 and $96,240 and $185,781 and $189,813 for the three and six months ended
September 30, 2006 and 2005,  respectively.  Of these fees,  $45,867 and $44,277
and  $92,602  and  $89,237  were  incurred  to  affiliates  of  the   subsidiary
partnerships' general partners ("Local General Partners").


Note 3 - 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, 2006.

                                       7
<PAGE>

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

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

As of September 30, 2006, the Partnership has invested approximately $37,555,000
(including   approximately   $902,000   classified  as  a  loan  repayable  from
sale/refinancing  proceeds in accordance with the Contribution Agreement,  which
has been  eliminated in  consolidation,  and not including  acquisition  fees of
approximately  $1,771,000)  of net proceeds in fourteen  Local  Partnerships  of
which  approximately  $1,060,000  remains  to be paid to the Local  Partnerships
(including  approximately  $521,000 being held in escrow) as certain benchmarks,
such as  occupancy  level,  must be attained  prior to the release of the funds.
During the six months ended September 30, 2006,  approximately  $18,000 was paid
to the Local Partnerships.

Off Balance Sheet Arrangements
-------------------------------
The Partnership has no off-balance sheet arrangements.

Tabular Disclosure of Contractual Obligations
---------------------------------------------
The Partnership  discloses in Item 7 of the Partnership's  Annual Report on Form
10-K for the year ended March 31, 2006,  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 September 30,
2006.

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

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

For the six months ended  September 30, 2006,  cash and cash  equivalents of the
Partnership  and its  fourteen  consolidated  Local  Partnerships  decreased  by
approximately  $53,000. This decrease was due to repayments of mortgage notes of
approximately  $251,000 which exceeded net cash provided by operating activities
of  approximately  $177,000,  a  decrease  in cash  held in escrow  relating  to
investing  activities of  approximately  $11,000 and an increase in due to local
general   partners  and   affiliates   relating  to  investing   activities   of
approximately $10,000.  Included in the adjustments to reconcile the net loss to
net cash provided by operating  activities is depreciation  and  amortization of
approximately $1,214,000.

Total  expenses for the three and six months ended  September 30, 2006 and 2005,
excluding   depreciation   and   amortization,    interest   and   general   and
administrative-related  parties,  totaled $1,042,144 and $974,781 and $2,091,640
and $1,950,972, respectively.

Accounts  payable and other  liabilities  totaled  $10,081,170  and  $9,675,759,
respectively, which are comprised of the following amounts:
<TABLE>
<CAPTION>
                                                  September 30,   March 31,
                                                      2006          2006
                                                  -----------   -----------
<S>                                               <C>           <C>
Accounts payable                                  $   400,286   $   481,944
Accrued interest payable                            9,300,866     8,791,745
Security deposits payable                             380,018       402,070
                                                  -----------   -----------

   Total accounts payable and other liabilities   $10,081,170   $ 9,675,759
                                                  ===========   ===========
</TABLE>


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

As  indicated  in  the  above  table,   accrued   interest   payable   comprised
approximately  92% and 91% of the total accounts  payable and other  liabilities
amount at September  30, 2006 and March 31,  2006.  Such amount  represents  the
accrued  interest on all mortgage  loans,  which  include  primary and secondary
loans. Certain secondary loans have provisions such that interest is accrued but
not payable  until a future date.  The  Partnership  anticipates  the payment of
accrued  interest on the  secondary  loans  (which  make up the  majority of the
accrued interest payable amount indicated in the above table and which have been
accumulating  since  the  Partnership's   investment  in  the  respective  Local
Partnership)  will be made from  future  refinancings  or sales  proceeds of the
respective Local Partnerships.  In addition,  each Local Partnership's  mortgage
notes are  collateralized  by the land and  buildings  of the  respective  Local
Partnership, and are without further recourse to the Partnership.

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

At September 30, 2006,  there is  approximately  $136,000 in the working capital
reserves.  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.  During the six months
ended  September  30, 2006,  approximately  $16,000 of cash  distributions  were
received from the Local Partnerships.

                                       8
<PAGE>


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

Partnership   management  fees  owed  to  the  General   Partner   amounting  to
approximately  $2,472,000 and $2,304,000 were accrued and unpaid as of September
30,  2006 and  March 31,  2006,  respectively.  Without  the  General  Partner's
advances and continued  allowance of accrual without payment of certain fees and
expense  reimbursements,  the Partnership  will not be in a position to meet its
obligations.  The General Partner has continued to advance and allow the accrual
without payment of these amounts but is under no obligation to continue to do so
(see Note 2).

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

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

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 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,
2006.

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

Property and  equipment  to be held and used are carried at cost which  includes
the purchase price,  acquisition fees and expenses, and any other costs incurred
in acquiring the  properties.  The cost of property and equipment is depreciated
over their estimated useful lives using accelerated and  straight-line  methods.
Expenditures  for repairs and  maintenance  are charged to expense as  incurred;
major  renewals  and  betterments  are  capitalized.  At the time  property  and
equipment  are  retired  or  otherwise  disposed  of,  the cost and  accumulated
depreciation  are  eliminated  from  the  assets  and  accumulated  depreciation
accounts  and the profit or loss on such  disposition  is reflected in earnings.
The partnership  complies with Statement of Financial  Accounting  Standards No.
144 "Accounting for the Impairment or Disposal of Long-Lived  Assets". A loss on
impairment of assets is recorded when management  estimates amounts  recoverable
through future operations and sale of the property on an undiscounted  basis are
below depreciated cost. At that time property investments themselves are reduced
to the estimated fair value  (generally  using  discounted  cash flows) when the
property is considered to be impaired and the depreciated cost exceeds estimated
fair value.  Through  September 30, 2006, the  Partnership  has not recorded any
loss on impairment of assets or reductions to estimated fair value.

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 they are 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 six months ended  September 30, 2006
and  2005  continued  to be in the  form of  rental  income  with  corresponding
expenses divided among operations, depreciation and mortgage interest.

Rental  income  increased  approximately  3% and 1% for the three and six months
ended September 30, 2006 as compared to the corresponding periods in 2005.

Other income  increased  approximately  $7,000 and $27,000 for the three and six
months  ended  September  30, 2006 as compared to the  corresponding  periods in
2005,  primarily  due to an increase in interest  earned on cash balances at the
Partnership  level,  the receipt of insurance  proceeds  and  increases in lease
termination  and cleaning fees at one Local  Partnership and increases in tenant
charges and vending  income at a second  Local  Partnership,  offset by a rental
subsidy  adjustment  which was recorded as other income in 2005 at a third Local
Partnership.

Total expenses,  excluding general and  administrative-related  parties, repairs
and maintenance  and operating,  remained  fairly  consistent,  with an increase
(decrease)  of  approximately  2% and (1%) for the  three and six  months  ended
September 30, 2006 as compared to the corresponding periods in 2005.

General and  administrative-related  parties decreased approximately $51,000 and
$59,000 for the three and six months ended September 30, 2006 as compared to the
corresponding  periods in 2005,  primarily due to  underaccruals of 2004 expense
reimbursements which were reflected in the 2005 expense and decreases in expense
reimbursements to the General Partner in 2006 at the Partnership level.

                                       9
<PAGE>

Repairs and  maintenance  increased  approximately  $33,000 and $100,000 for the
three and six months ended  September 30, 2006 as compared to the  corresponding
periods in 2005,  primarily due to plumbing repairs and floor replacement at one
Local Partnership and carpet  replacement and miscellaneous  repairs at a second
Local Partnership.

Operating and other expense increased  approximately  $3,000 and $72,000 for the
three and six months ended  September 30, 2006 as compared to the  corresponding
periods in 2005, primarily due to an overall increase in gas, electric and other
utility costs at several local partnerships.

                                       10
<PAGE>

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 9.11%
per annum.  The Partnership does not believe there is a material risk associated
with the  various  interest  rates  associated  with the  mortgage  notes as the
majority  of  the  Local  Partnership  mortgage  notes  have  fixed  rates.  The
Partnership currently discloses in Item 8, Note 3 to the consolidated  financial
statements  in the  Partnership's  Annual Report on Form 10-K for the year ended
March 31,  2006,  the fair value of the  mortgage  notes  payable.  There are no
material changes to such disclosure or amounts as of September 30, 2006.

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

Item 4.  Controls and Procedures

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES The Chief Executive Officer and
Chief Financial Officer of Related  Independence  L.L.C., the general partner of
the Partnership has evaluated the effectiveness of the Partnership's  disclosure
controls  and  procedures  (as  such  term is  defined  in Rules  13a-15(e)  and
15d-15(e)  under the  Securities  Exchange  Act of 1934,  as amended  ("Exchange
Act")),  as of the end of the  period  covered  by this  report.  Based  on such
evaluation,  such officer has concluded that, as of the end of such period,  the
Partnership's disclosure controls and procedures are effective.

CHANGES IN INTERNAL  CONTROL OVER  FINANCIAL  REPORTING  There have not been any
changes in the  Partnership's  internal control over financial  reporting during
the fiscal quarter to which this report relates that have  materially  affected,
or are  reasonably  likely to  materially  affect,  the  Partnership's  internal
control over financial reporting.

                                       11
<PAGE>

                           PART II. OTHER INFORMATION



Item 1.    Legal Proceedings - None

Item 1A.   Risk Factors - No changes

Item 2.    Unregistered Sales of Equity in Securities and Use of Proceeds - 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

           (4)    Form of Amended and Restated  Agreement of Limited  artnership
                  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).

           (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.


                                       12
<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: October 31, 2006
      ----------------

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


Date: October 31, 2006
      ----------------

                                             By:  /s/ Glenn F. Hopps
                                                  ------------------
                                                  Glenn F. Hopps,
                                                  Treasurer
                                                  (Principal Accounting Officer)




<PAGE>

                                                                    Exhibit 31.1


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


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

     1)  I have  reviewed  this  quarterly  report on Form  10-Q for the  period
         ending September 30, 2006 of the Partnership;

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

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

     4)  I am responsible for establishing and maintaining  disclosure  controls
         and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-(e))
         and internal  control over financial  reporting (as defined in Exchange
         Act Rules 13a-15(f) and 15d-15(f)) for the Partnership and have:

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

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

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

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

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

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

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



         Date: October 31, 2006
               ----------------

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

<PAGE>
                                                                    Exhibit 32.1


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


In connection with the Quarterly  Report of Independence Tax Credit Plus L.P. IV
(the  "Partnership")  on Form 10-Q for the period  ending  September 30, 2006 as
filed with the  Securities  and Exchange  Commission  ("SEC") on the date hereof
(the "Report"),  I, Alan P. Hirmes,  Chief Executive Officer and Chief Financial
Officer of  Related  Independence  L.L.C.  which is the  general  partner of the
Partnership, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, that:


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


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


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



By:  /s/ Alan P. Hirmes
     ------------------
     Alan P. Hirmes,
     Chief Executive Officer and
     Chief Financial Officer
     October 31, 2006