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 June 30, 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.  Yes  þNo  
 
 
 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).  Yes     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  
            
            Accelerated
      filer  Non-accelerated
      filer    (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).  Yes    No  þ
 
 
 
 
 
  
 PART I –
FINANCIAL INFORMATION
 
 Item 1.
Financial Statements
 
 INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Condensed
Consolidated Balance Sheets
 
 
 
 
 June
      30,
                  2009
                
                March
      31,
                  2009*(Unaudited)ASSETSOperating
      assetsProperty
      and equipment - (at cost, net of accumulated depreciation of $21,675,536
      and $21,255,167, respectively)
                
                $
                33,114,282
                
                $
                33,534,651Cash
      and cash equivalents
                
                
                1,144,573
                
                
                1,221,135Cash
      held in escrow
                
                
                2,347,576
                
                
                2,384,087Deferred
      costs (net of accumulated amortization of $706,385 and $700,294,
      respectively)
                
                
                312,291
                
                
                318,382Due
      from local general partners and affiliates (Note 2)
                
                
                384,985
                
                
                381,072Other
      assets
                
                
                424,081
                
                
                381,288Total
      operating assets
                
                $
                37,727,788
                
                $
                38,220,615LIABILITIES
      AND PARTNERS’ CAPITAL (DEFICIT)Operating
      liabilitiesMortgage
      notes payable
                
                $
                25,058,731
                
                $
                25,188,479Accounts
      payable and other liabilities
                
                
                485,362
                
                
                450,137Accrued
      interest payable
                
                
                6,451,854
                
                
                6,301,218Security
      deposit payable
                
                
                312,572
                
                
                313,722Due
      to local general partners and affiliates (Note 2)
                
                
                1,797,159
                
                
                1,814,971Due
      to general partners and affiliates (Note 2)
                
                
                2,264,175
                
                
                2,183,287Total
      operating liabilities
                
                
                36,369,853
                
                
                36,251,814Commitments
      and contingencies (Note 6)Partners’
      capital (deficit):Limited
      partners – 45,844 Beneficial Assignment Certificates (“BACs”) issued and
      outstanding
                
                
                511,901
                
                
                1,060,866General
      partners
                
                
                (401,481
                )
                
                (395,936
                )Independence
      Tax Credit Plus L.P. IV total
                
                
                110,420
                
                
                664,930Noncontrolling
      interests
                
                
                1,247,515
                
                
                1,303,871Total
      partners’ capital (deficit)
                
                
                1,357,935
                
                
                1,968,801Total
      liabilities and partners’ capital (deficit)
                
                $
                37,727,788
                
                $
                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
              June
      30,2009
            
            2008*Operations:RevenuesRental
      income
            
            $
            1,276,569
            
            $
            1,213,488Other
            
            
            40,378
            
            
            48,767Total
      revenues
            
            
            1,316,947
            
            
            1,262,255ExpensesGeneral
      and administrative
            
            
            393,109
            
            
            360,780General
      and administrative-related parties (Note 2)
            
            
            159,134
            
            
            196,208Repairs
      and maintenance
            
            
            224,485
            
            
            181,300Operating
      and other
            
            
            221,346
            
            
            193,380Real
      estate taxes
            
            
            33,532
            
            
            31,307Insurance
            
            
            62,821
            
            
            72,276Interest
            
            
            344,926
            
            
            350,823Depreciation
      and amortization
            
            
            426,460
            
            
            524,011Total
      expenses
            
            
            1,865,813
            
            
            1,910,085Loss
      from operations
            
            
            (548,866
            )
            
            (647,830
            )Loss
      from discontinued operations
            
            
            0
            
            
            (60,404
            )Net
      loss
            
            
            (548,866
            )
            
            (708,234
            )Net
      income attributable to noncontrolling interests from
      operations
            
            
            (5,644
            )
            
            (9,433
            )Net
      loss attributable to noncontrolling interests from discontinued
      operations
            
            
            0
            
            
            256Net
      loss attributable to noncontrolling interests
            
            
            (5,644
            )
            
            (9,177
            )Net
      loss attributable to Independence Tax Credit Plus L.P. IV
            
            $
            (554,510
            )
            $
            (717,411
            )Loss
      from continuing operations – limited partners
            
            $
            (548,965
            )
            $
            (650,690
            )Loss
      from discontinued operations – limited partners
            
            
            0
            
            
            (59,547
            )Net
      loss – limited partners
            
            $
            (548,965
            )
            $
            (710,237
            )Number
      of BACs outstanding
            
            
            45,844
            
            
            45,844Loss
      from continuing operations per weighted average BAC
            
            $
            (11.97
            )
            $
            (14.19
            )Loss
      from discontinued operations per weighted average BAC
            
            
            0
            
            
            (1.30
            )Net
      loss per weighted average BAC
            
            $
            (11.97
            )
            $
            (15.49
            )*  
      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
      loss
            
            
            (548,866
            )
            
            (548,965
            )
            
            (5,545
            )
            
            5,644Distributions
            
            
            (62,000
            )
            
            0
            
            
            0
            
            
            (62,000
            )Partners’
      capital (deficit) – June 30, 2009
            
            $
            1,357,935
            
            $
            511,901
            
            $
            (401,481
            )
            $
            1,247,515The
      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)
 
 
 
 Three
      Months Ended
                  June
      30,2009
                
                2008*Cash
      flows from operating activities:Net
      loss
                
                $
                (548,866
                )
                $
                (708,234
                )Adjustments
      to reconcile net loss to net cash used in operating
      activities:Depreciation
      and amortization
                
                
                426,460
                
                
                552,955Loss
      on sale of property
                
                
                0
                
                
                34,242Increase
      in cash held in escrow
                
                
                (75,642
                )
                
                (173,099
                )Increase
      in other assets
                
                
                (42,793
                )
                
                (62,067
                )Increase
      (decrease) in accounts payable
                
                
                35,225
                
                
                (125,853
                )Increase
      in accrued interest payable
                
                
                150,636
                
                
                168,327Decrease
      in security deposit payable
                
                
                (1,150
                )
                
                (19,014
                )Increase
      in due from general partner and affiliates
                
                
                (3,913
                )
                
                0Decrease
      in due to local general partners and affiliates
                
                
                (17,812
                )
                
                (63,483
                )Increase
      in due to general partner and affiliates
                
                
                80,888
                
                
                109,620Total
      adjustments
                
                
                551,899
                
                
                421,628Net
      cash provided by (used in) operating activities
                
                
                3,033
                
                
                (286,606
                )Cash
      flows from investing activities:Release
      of cash held in escrow
                
                
                112,153
                
                
                22,316Proceeds
      from sale of property
                
                
                0
                
                
                303,289Increase
      in due from local general partner and affiliates
                
                
                0
                
                
                (9,000
                )Net
      payments from local general partners and affiliates
                
                
                0
                
                
                2,503Net
      cash provided by investing activities
                
                
                112,153
                
                
                319,108Cash
      flows from financing activities:Repayments
      of mortgage notes
                
                
                (129,748
                )
                
                (89,804
                )Decrease
      in capitalization of consolidated subsidiaries attributable to
      noncontrolling interests
                
                
                (62,000
                )
                
                (7,167
                )Net
      cash used in financing activities
                
                
                (191,748
                )
                
                (96,971
                )Net
      decrease in cash and cash equivalents
                
                
                (76,562
                )
                
                (64,469
                )Cash
      and cash equivalents at beginning of period
                
                
                1,221,135
                
                
                2,668,101Cash
      and cash equivalents at end of period**
                
                $
                1,144,573
                
                $
                2,603,632*  
      Reclassified for comparative purposes.Summarized
      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.
                  **
      Cash and cash equivalents at end of period includes cash and cash
      equivalents from discontinued operations of $0 and $0,
      respectively.
                  
                  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
 June 30,
2009
 (Unaudited)
  NOTE 1 –
General
 
 The
condensed consolidated financial statements, as of June 30, 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 first fiscal quarter ends June
30.  The first quarter for all subsidiaries ends March
31.  Accounts of the subsidiaries have been adjusted for intercompany
transactions from April 1 through June 30.  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 SFAS No. 160, Noncontrolling Interests in
Consolidated Financial Statements, (“SFAS No. 160”) which is effective
for fiscal year ends beginning after December 15, 2008.  In accordance
with SFAS No. 160, losses attributable to minority interests amounted to
approximately $6,000 for the three months ended June 30, 2009.  Prior
to the adoption of this SFAS, 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 the three
months ended June 30, 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 June 30, 2009, the results of its operations and its cash
flows for the three months ended June 30, 2009 and 2008.  However, the
operating results for the three months ended June 30, 2009 may not be indicative
of the results for the entire year.
 
 Recent Accounting
Pronouncements
  In June
2009, the FASB issued SFAS No. 168, “The FASB Accounting Standards Codification
and the Hierarchy of Generally Accepted Accounting Principles – a replacement of
FASB Statement No. 162”.  The objective of this statement is to
replace SFAS No. 162 and to establish the FASB Accounting Standards Codification
as the source of the 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 shall be 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 are superseded.
 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
Statement of Financial Accounting Standards (“SFAS”) No. 144 “Accounting for the
Impairment or Disposal of Long-Lived Assets”.  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 June 30,
2009, the Partnership 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 SFAS No. 144, 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 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 regarding discontinued operations.
    - 6
-
 INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Notes to
Condensed Consolidated Financial Statements
 June 30,
2009
 (Unaudited)
 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 June
30, 2009.
 
 Subsequent
Events
  The
Partnership has evaluated and disclosed, as applicable, subsequent events
through August 6, 2009, the issuance date of these financial
statements.
 
 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 months ended June 30,
2009 and 2008 were as follows:
 
 Three
      Months Ended
                                June
      30,2009
                              
                              
                              2008*Partnership
      management fees (a)
                              
                              $
                              74,750
                              
                              
                              $
                              77,750Expense
      reimbursement (b)
                              
                              
                              37,093
                              
                              
                              
                              27,758Local
      administrative fee (c)
                              
                              
                              9,500
                              
                              
                              
                              17,750Total
      general and administrative-General Partners
                              
                              
                              121,343
                              
                              
                              
                              123,258Property
      management fees incurred to affiliates of the subsidiary partnerships’
      general partners (d)
                              
                              
                              37,791
                              
                              
                              
                              72,950Total
      general and administrative-related parties
                              
                              $
                              159,134
                              
                              
                              $
                              196,208*  
      Reclassified for comparative purposes.
 
 
 The costs
incurred to related parties from discontinued operations for the three months
ended June 30, 2009 and 2008 were as follows:
 
 Three
      Months Ended
                                June
      30,2009
                              
                              
                              2008Local
      administrative fee (c)
                              
                              $
                              0
                              
                              
                              
                              $
                              1,250Total
      general and administrative-related parties
                              
                              $
                              0
                              
                              
                              
                              $
                              1,250
 
 
 (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 $1,712,000 and $1,638,000 were accrued and unpaid as
of June 30, 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.
  
 - 7
-
 INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Notes to
Condensed Consolidated Financial Statements
 June 30,
2009
 (Unaudited)
 (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)   Property
management fees incurred by the Local Partnerships amounted to $76,959 and
$112,830 for the three months ended June 30, 2009 and 2008,
respectively.  Of these fees, $37,791 and $72,950 were incurred to
affiliates of the subsidiary partnerships’ general partners (“Local General
Partners”) for the three months ended June 30, 2009 and 2008, respectively,
which includes $0 of fees relating to discontinued operations.
 
 B)
            Due
      to Local General Partners and
Affiliates
 
 The
amounts due to Local General Partners and affiliates from operating liabilities
consist of the following:
 
 June
      30,
                          2009
                        
                        
                        March
      31,
                          2009Development
      fee payable
                        
                        $
                        1,586,284
                        
                        
                        $
                        1,586,284Construction
      costs payable
                        
                        
                        50,000
                        
                        
                        
                        50,000Operating
      advances
                        
                        
                        46,000
                        
                        
                        
                        46,000Management
      and other fees
                        
                        
                        114,875
                        
                        
                        
                        132,687$
                        1,797,159
                        
                        
                        $
                        1,814,971
 
 
 Due from
Local General Partners and affiliates from operating liabilities consists of the
following:
 
 June
      30,
                      2009
                    
                    
                    March
      31,
                      2009Local
      general partner loan receivable
                    
                    $
                    384,985
                    
                    
                    $
                    381,072
 
 
 NOTE 3 –
Fair Value Measurements
 
 The
Partnership adopted SFAS No. 157, “Fair Value Measurements”for
financial assets and liabilities. 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).  The statement 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
      June 30, 2009
                  
                  At
      March 31, 2009Carrying
      Amount
                  
                  Fair
      Estimated Value
                  
                  Carrying
      Amount
                  
                  Fair
      Estimated ValueLIABILITIES:Mortgage
      notes
                  
                  $
                  25,058,731
                  
                  
                  $
                  15,400,995
                  
                  
                  $
                  25,188,479
                  
                  
                  $
                  15,101,746
 
 - 8
-
 INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Notes to
Condensed Consolidated Financial Statements
 June 30,
2009
 (Unaudited)
 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 property partnerships, which held the mortgage notes, to determine
what discount rates to utilize.
 
 
 NOTE 4 –
Sale of Properties
 
 The
Partnership is currently in the process of disposing of all of its
investments.
  As of
June 30, 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 quarter ended
March 31, 2008.  An adjustment reducing the gain by approximately
$34,000 was recorded during the quarter ended June 30, 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 months
ended June 30, 2009, there were no properties classified as discontinued
operations on the condensed consolidated financial statements.  For
the three months ended June 30, 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.
   
 - 9
-
 INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Notes to
Condensed Consolidated Financial Statements
 June 30,
2009
 (Unaudited)
 Consolidated
Statements of Discontinued Operations:
 
 Three
      Months
                                    Ended
                                    June
      30, 2008*RevenuesRental
      income
                                  
                                  $
                                  80,813Other
                                  
                                  
                                  100Loss
      on sale of property (Note 4)
                                  
                                  
                                  (34,242
                                  )Total
      revenues
                                  
                                  
                                  46,671ExpensesGeneral
      and administrative
                                  
                                  
                                  25,660General
      and administrative-related parties (Note 2)
                                  
                                  
                                  1,250Repairs
      and maintenance
                                  
                                  
                                  8,498Operating
      and other
                                  
                                  
                                  27,666Insurance
                                  
                                  
                                  8,000Interest
                                  
                                  
                                  7,058Depreciation
      and amortization
                                  
                                  
                                  28,943Total
      expenses
                                  
                                  
                                  107,075Loss
      before noncontrolling interests
                                  
                                  
                                  (60,404
                                  )Noncontrolling
      interests in loss of subsidiaries from discontinued
    operations
                                  
                                  
                                  256Net
      loss from discontinued operations
                                  
                                  $
                                  (60,148
                                  )Net
      loss – limited partners from discontinued operations
                                  
                                  $
                                  (59,547
                                  )Number
      of BACs outstanding
                                  
                                  
                                  45,844Net
      loss from discontinued operations per weighted average BAC
                                  
                                  $
                                  (1.30
                                  )
 
 
 Cash
Flows from Discontinued Operations:
 
 Three
      Months
                          Ended
                          June
      30,
                          2008*Net
      cash used in operating activities
                        
                        $
                        (61,589
                        )Net
      cash used in investing activities
                        
                        $
                        (379,176
                        )Net
      cash provided by financing activities
                        
                        $
                        4,240*  
      Reclassified for comparative purposes.
 
 
 - 10
-
 INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Notes to
Condensed Consolidated Financial Statements
 June 30,
2009
 (Unaudited)
 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.
 
 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 June 30, 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.
 
 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.
 
 
 
 
 - 11
-
   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 June 30, 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 three months ended June 30,
2009, payments of approximately $25,000 were made to the Local
Partnerships.  As of June 30, 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 (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 BACs holders in circumstances other than refinancing or
sales.  During the three months ended June 30, 2009 and 2008,
distributions from operations of the Local Partnerships amounted to
approximately $0 and $9,000, respectively.  Additionally, during the
three months ended June 30, 2009 and 2008, the Partnership received
approximately $0 and $303,000, respectively, of distributions from the sale of
Local Partnerships.
 
 For the
three months ended June 30, 2009, cash and cash equivalents of the Partnership
and its consolidated Local Partnerships decreased approximately $77,000 due to a
decrease in capitalization of consolidated subsidiaries attributable to
noncontrolling interests of approximately $62,000 and repayments of mortgage
notes of approximately $130,000.  Such outflows exceeded a release of
cash held in escrow of approximately $112,000 and net cash provided by operating
activities of approximately $3,000.  Included in the adjustments to
reconcile the net loss to net cash used in operating activities is depreciation
and amortization of approximately $426,000.
 
 Total
expenses for the three months ended June 30, 2009 and 2008, excluding
depreciation and amortization, interest and general and administrative-related
parties, totaled $935,293 and $839,043, respectively.
 
 Accounts
payable totaled $485,362 and $450,137 as of June 30, 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.  In addition, there were
no accounts payable from discontinued operations as of June 30, 2009 and March
31, 2009, respectively.  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.
 
 Accrued
interest payable totaled $6,451,854 and $6,301,218 as of June 30, 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.  In addition, there was no accrued interest
payable from discontinued operations as of June 30, 2009 and March 31, 2009,
respectively.  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.
 
 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 $300,000, exclusive of
the Local Partnership’s working capital, remained unused at June 30,
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
$1,712,000 and $1,638,000 were accrued and unpaid as of June 30, 2009 and March
31, 2009, respectively.  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.  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.
 
 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.  However, the
Partnership’s investment in Local Partnerships may not be protected against a
general downturn in the national economy.
 
 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.
    - 12
-
   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, and 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 June 30, 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 adopted SFAS No. 157, “Fair Value Measurements”for
financial assets and liabilities. 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).  The statement 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
      June 30, 2009
                
                At
      March 31, 2009Carrying
      Amount
                
                Fair
      Estimated Value
                
                Carrying
      Amount
                
                Fair
      Estimated ValueLIABILITIES:Mortgage
      notes
                
                $
                25,058,731
                
                
                $
                15,400,995
                
                
                $
                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 property 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
Statement of Financial Accounting Standards (“SFAS”) No. 144 “Accounting for the
Impairment or Disposal of Long-Lived Assets”.  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 June 30,
2009, the Partnership recorded approximately $12,033,000 as a loss on impairment
of assets, all of which was recorded during the year ended March 31,
2009.
 - 13
-
 In
accordance with SFAS No. 144, 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 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 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 June
30, 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 months ended June 30, 2009 and 2008
continued to be 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 approximately 5% for the three months ended June 30, 2009, as
compared to the corresponding period in 2008, primarily due to increases in
rental rates at the Local Partnerships.
 
 Total
expenses, excluding general and administrative-related parties, repairs and
maintenance, operating and other, and depreciation and amortization, remained
fairly consistent with an increase of approximately 2% for the three months
ended June 30, 2009 as compared to the corresponding period in
2008.
 
 General
and administrative-related parties expenses decreased approximately $37,000 for
the three months ended June 30, 2009 as compared to the corresponding period in
2008, primarily due to a decrease in property management fees recorded in the
current quarter at one Local Partnership.
  Repairs
and maintenance expense increased approximately $43,000 for the three months
ended June 30, 2009 as compared to the corresponding period in 2008, primarily
due to increases in plumbing, painting and décor and kitchen equipment
replacement at one Local Partnership, increases in roof repairs and material at
a second Local Partnership and an increase in building exterior repair and
carpet replacement at a third Local Partnership.
  Operating
and other expenses increased approximately $28,000 for the three months ended
June 30, 2009 as compared to the corresponding period in 2008, primarily due to
an overall increase in utility costs at the Local Partnerships.
  Depreciation
and amortization decreased approximately $98,000 for the three months ended June
30, 2009 as compared to the corresponding period in 2008, primarily due to
reduction of the property and equipment as a result of a loss on impairment of
assets recorded 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 June 30, 2009.
  The
Partnership does not have any other market risk sensitive
instruments.
  - 14
-
 
 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.
 
 (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 Company;
(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 Company are
being made only in accordance with authorizations of management and directors of
the Company; and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the company’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.
 
 The
Partnership’s Annual Report on Form 10-K did not include an attestation report
of the Partnership’s registered public accounting firm regarding internal
control over financial reporting. The Partnership’s internal control over
financial reporting was not subject to attestation by the Partnership’s
registered public accounting firm pursuant to temporary rules of the Securities
and Exchange Commission that permit the Partnership to provide only this
report.
 
 (c)  Changes in Internal Controls over Financial
Reporting.Except as noted in (b) above, during the period
ended June 30, 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.
  
 
 - 15
-
  
 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.
 
 
 
 - 16
-
  
 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:
                  August 6, 2009
                  
                  
                  
                  By:
                  /s/ Robert L. LevyRobert
      L. LevyChief
      Financial Officer, Principal Accounting Officer and
    DirectorDate:
                  August 6, 2009
                  
                  
                  
                  By:
                  /s/ Andrew J. WeilAndrew
      J. WeilPresident
      and Chief Executive
Officer
 
 
 
 - 17
-