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 December 31, 1997

                                       OR

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


                         Commission File Number 33-89968


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


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


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

        Registrant's telephone number, including area code (212)421-5333


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

<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

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

                                                     ===========    ===========
                                                     December 31,     March 31,
                                                         1997           1997    
                                                     -----------    -----------
ASSETS                                                             

Property and equipment at cost,
 net of accumulated depreciation
 of $820,350 and $351,046,
 respectively                                        $22,990,513    $19,801,865
Construction in progress                              11,113,313      1,010,368
Cash and cash equivalents                              6,217,095     17,061,164
Investments available for sale                        17,200,000     16,200,000
Cash held in escrow                                    2,492,007        865,896
Deferred costs, net of accumulated amortization
 of $37,332 and $21,830, respectively                  1,651,233      2,179,235
Other assets                                           1,030,983        262,530
                                                     -----------    -----------
 Total assets                                        $62,695,144    $57,381,058
                                                     ===========    ===========

LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
 Mortgage notes payable                              $10,499,871    $ 9,226,190
 Construction loans payable                            6,517,775      3,790,102
 Accounts payable and other liabilities                3,464,181      2,531,437
 Due to local general partners and affiliates          1,829,717      1,264,805
 Due to general partner and affiliates                   205,975        212,701
                                                     -----------    -----------
   Total liabilities                                  22,517,519     17,025,235
                                                     -----------    -----------

Minority interest                                       (720,498)      (718,978)
                                                     -----------    -----------
Partners' capital:
 Limited partners (45,844 BACs issued
  and outstanding)                                    40,896,675     41,071,586
 General partner                                           1,448          3,215
                                                     -----------    -----------
  Total partners' capital                             40,898,123     41,074,801
                                                     -----------    -----------
  Total liabilities and partners' capital            $62,695,144    $57,381,058
                                                     ===========    ===========


           See Accompanying Notes to Consolidated Financial Statements


                                      -2-
<PAGE>

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

                               ====================    ========================
                                Three Months Ended        Nine Months Ended
                                   December 31,               December 31,
                               --------------------    ------------------------
                                 1997       1996*         1997          1996*
                               --------------------    ------------------------

REVENUES
Rental income                  $379,196   $ 226,456    $1,012,466    $  394,187
Other income principally
 interest on capital
 contributions)                 317,243     324,242       908,512       825,851
                               --------   ---------    ----------    ----------
Total revenues                  696,439     550,698     1,920,978     1,220,038
                               --------   ---------    ----------    ----------


EXPENSES
General and administrative      153,679     174,508       417,609       327,177
General and administrative-
 related parties (Note 2)       116,779     109,370       280,674       231,665
Repairs and maintenance          14,009      30,760       129,781        46,091
Operating                        43,634      18,712       127,365        47,729
Taxes                             6,307      21,957        52,752        21,957
Insurance                        12,086      21,264        49,191        31,687
Interest                        178,746     146,190       556,998       221,013
Depreciation and amortization   162,633     123,744       484,806       200,456
                               --------   ---------    ----------    ----------
Total expenses                  687,873     646,505     2,099,176     1,127,775
                               --------   ---------    ----------    ----------

Income (loss) before
 minority interest                8,566     (95,807)     (178,198)       92,263
Minority interest in loss
 of subsidiary partnerships          45       2,401         1,520         3,232
                               --------   ---------    ----------    ----------
Net income (loss)              $  8,611   $ (93,406)   $ (176,678)   $   95,495
                               ========   =========    ==========    ==========
Net income (loss)
 -limited partners             $  8,525   $ (92,472)   $ (174,911)   $   94,540
                               ========   =========    ==========    ==========
Weighted average number
 of BACs outstanding             45,844      45,844        45,844        39,024
                               ========   =========    ==========    ==========
Net income (loss)
 per weighted average BAC      $    .18   $   (2.02)   $    (3.82)   $     2.42
                               ========   =========    ==========    ==========

*Reclassified for comparative purposes

           See Accompanying Notes to Consolidated Financial Statements


                                      -3-
<PAGE>

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


                                         ======================================
                                                            Limited     General
                                            Total          Partners     Partner
                                         --------------------------------------
Partners' capital -
 April 1, 1997                           $41,074,801     $41,071,586     $3,215
Net loss                                    (176,678)       (174,911)    (1,767)
                                         -----------     -----------     ------
Partners' capital -
 December 31, 1997                       $40,898,123     $40,896,675     $1,448
                                         ===========     ===========     ======


           See Accompanying Notes to Consolidated Financial Statements


                                      -4-
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Increase (Decrease) in Cash and Cash Equivalents
                                   (Unaudited)

                                                 ==============================
                                                        Nine Months Ended

                                                           December 31,
                                                 ------------------------------
                                                     1997              1996
                                                 ------------------------------
Cash flows from operating activities:
 Net income (loss)                               $   (176,678)     $     95,495
                                                 ------------      ------------
 Adjustments to reconcile net
  income (loss) to net cash
  provided by operating activities:
 Depreciation and amortization                        484,806           200,456
 Minority interest in loss of
  subsidiary properties                                (1,520)           (3,232)
 Increase in cash held in escrow                      (77,216)          (16,428)
 Increase in other assets                             (49,549)          (61,761)
 Increase in accounts
  payable and other liabilities                       336,260         1,759,794
 Increase in due to local general
  partners and affiliates                              91,800            13,776
 (Decrease) increase in due to
  general partner and affiliates                       (6,726)          133,758
                                                 ------------      ------------
  Total adjustments                                   777,855         2,026,363
                                                 ------------      ------------

 Net cash provided by operating
  activities                                          601,177         2,121,858
                                                 ------------      ------------

Cash flows from investing activities:
 Increase in property and equipment                  (997,922)      (12,801,331)
 Increase in construction in progress             (12,762,975)       (3,136,474)
 Increase in cash held in escrow                   (1,548,895)         (457,698)
 Increase in accounts payable and
  other liabilities                                   596,484           680,996
 Increase in other assets                            (718,904)                0
 Increase in due to local general
  partners and affiliates                           1,248,581                 0
 Decrease in due to local general
  partners and affiliates                            (775,469)          (63,281)
 Increase in investments available
  for sale                                         (1,000,000)      (13,397,588)
 Decrease (increase) in deferred costs                532,558        (1,133,549)
                                                 ------------      ------------

 Net cash used in investing
  activities                                      (15,426,542)      (30,308,925)
                                                 ============      ============


           See Accompanying Notes to Consolidated Financial Statements


                                      -5-
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Increase (Decrease) in Cash and Cash Equivalents
                                   (continued)
                                   (Unaudited)

                                                 =============================
                                                       Nine Months Ended
                                                          December 31,
                                                    1997               1996
                                                 -----------       -----------
Cash flows from financing activities:
 Proceeds from mortgage notes                      1,303,324         9,247,947
 Repayments of mortgage notes                        (29,643)          (12,298)
 Proceeds from construction loans                  5,006,862           331,642
 Repayments of construction loans                 (2,279,189)                0
 Increase in offering costs                                0        (2,035,085)
 Increase in deferred costs                          (20,058)         (198,862)
 Decrease in due to
  general partner and affiliates                           0          (273,330)
 Capital contributions received                            0        18,511,000
 Increase in capitalization of
  consolidated subsidiaries
  attributable to minority interest                        0           622,538
                                                 -----------       -----------
Net cash provided by financing
 activities                                        3,981,296        26,193,552
                                                 -----------       -----------
Net decrease in cash and
 cash equivalents                                (10,844,069)       (1,993,515)
Cash and cash equivalents at
 beginning of period                              17,061,164         8,484,832
                                                 -----------       -----------
Cash and cash equivalents at
 end of period                                   $ 6,217,095       $ 6,491,317
                                                 ===========       ===========
Supplemental disclosures of
 noncash investing activities:
 Capitalization of deferred
  acquisition costs                              $         0       $   804,197
 Consolidation of investment in
  subsidiary partnership:*
  Increase in property and
   equipment                                     $(2,660,030)      $         0
  Decrease in construction in
   progress                                      $ 2,660,030       $         0



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


           See Accompanying Notes to Consolidated Financial Statements


                                      -6-
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                          Notes to Financial Statements
                                December 31, 1997
                                   (Unaudited)


Note 1 - General

Independence Tax Credit Plus L.P. IV (a Delaware limited partnership) (the
"Partnership") was organized on February 22, 1995, and commenced the public
offering on July 6, 1995. The general partner of the Partnership is Related
Independence L.L.C., a Delaware limited liability company (the "General
Partner").

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

As of December 31, 1997, the Partnership has acquired a limited partnership
interest in nine subsidiary partnerships, three of which have not been
consolidated and are shown on the balance sheet, at cost, as property and
equipment. The Partnership anticipates acquiring limited partnership interests
in additional subsidiary partnerships in the future. Except for the interest in
Westminster Park Plaza ("Westminster") and New Zion Apartments, L.P. ("New
Zion"), the Partnership's investment in each subsidiary partnership represents
98.99% or 99.89% of the partnership interests in the subsidiary partnership. As
of June 30, 1997, the Partnership had acquired a 47.29% interest in Westminster
and had two options to acquire an additional 48.7% interest and a 3% interest,
respectively. The interest acquired by the Partnership in Westminster gave it
full and exclusive voting rights. On July 1, 1997, the Partnership exercised its
option to purchase an additional 48.7% interest in Westminster, after which the
Partnership's investment in Westminster totaled 95.99%. The Partnership's
investment in New Zion represents 58.12% of the partnership interest in the
subsidiary partnership (the other 41.86% limited partnership interest is owned
by an affiliate of the Partnership, with the same management). Through the
rights of the Partnership and/or an affiliate of the General Partner, which
affiliate has a contractual obligation to act on behalf of the Partnership, to
remove the general partner of the subsidiary partnerships and to approve certain
major operating and financial decisions, the Partnership has a controlling
fi-


                                      -7-
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                          Notes to Financial Statements
                                December 31, 1997
                                   (Unaudited)


nancial interest in Westminster as well as in the other subsidiary partnerships
in which it has invested.

The Partnership is authorized to issue a total of 100,000 ($100,000,000)
Beneficial Assignment Certificates ("BACs") which have been registered with the
Securities and Exchange Commission for sale to the public. Each BAC represents
all of the economic and virtually all of the ownership rights attributable to a
Limited Partnership Interest. The solicitation for the subscription of BACs was
terminated as of May 22, 1996 and the final closing occurred on August 15, 1996.
As of both December 31, 1997 and March 31, 1997 the Partnership raised a total
of $45,844,000 representing 45,844 BACs.

The Partnership's fiscal quarter ends December 31. All subsidiaries have fiscal
quarters ending September 30. Accounts of the subsidiaries have been adjusted
for intercompany transactions from October 1 through December 31.

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

Increases (decreases) in the capitalization of consolidated subsidiaries
attributable to minority interest arise from cash contributions from and cash
distributions to the minority interest partners.

Losses attributable to minority interests which exceed the minority interests'
investment in a subsidiary have been charged to the Partnership. Such losses
aggregated $5,193 and $16 and $82,785 and $38 for the three and nine months
ended December 31, 1997 and 1996, respectively. The Partnership's investment in
each subsidiary is equal to the respective subsidiary's partners' equity less
minority interest capital, if any. In consolidation, all subsidiary partnership
losses are included in the Partnership's capital account except for losses
allocated to minority interest capital.

Certain information and note disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted or condensed. These condensed financial statements should be
read in conjunction with the financial statements and notes thereto included in
the Partnership's Annual Report on Form 10-K for the period ended March 31,
1997.


                                      -8-
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                          Notes to Financial Statements
                                December 31, 1997
                                   (Unaudited)


The books and records of the Partnership are maintained on the accrual basis of
accounting in accordance with generally accepted accounting principles. In the
opinion of the General Partner of the Partnership, the accompanying unaudited
financial statements contain all adjustments (consisting only of normal
recurring adjustments) necessary to present fairly the financial position of the
Partnership as of December 31, 1997, the results of operations for the three and
nine months ended December 31, 1997 and 1996 and cash flows for the nine months
ended December 31, 1997 and 1996. However, the operating results for the nine
months ended December 31, 1997 may not be indicative of the results for the
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 are as follows:

A) Acquisition Fees and Expenses 

The General Partner is entitled to an acquisition fee equal to 6.0% of the gross
proceeds of the offering paid upon investor closings, for its services in
connection with assisting the Local Partnerships in acquiring apartment
complexes and supervising the construction of the complexes. Such fees will be
capitalized as a cost of the investments upon closing of subsidiary partnership
acquisitions. As of December 31, 1997 and March 31, 1997, $2,750,640 of such
costs have been incurred, of which $1,477,480 and $874,501 have been
capitalized.


                                      -9-
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                          Notes to Financial Statements
                                December 31, 1997
                                   (Unaudited)


B) Other Related Party Expenses 

The costs incurred to related parties for the three and nine months ended
December 31, 1997 and 1996 were as follows:

                                       ===================   ===================
                                       Three Months Ended     Nine Months Ended
                                           December 31,          December 31,
                                       -------------------   -------------------
                                         1997       1996*      1997       1996*
                                       -------------------   -------------------
Partnership management fees (a)        $ 88,905   $ 86,155   $173,134   $123,052
Expense reimbursement (b)                18,000     21,057     78,813     98,248
Property management fees (c)              8,624        908     24,977      6,615
Local administrative fee (d)              1,250      1,250      3,750      3,750
                                       --------   --------   --------   --------
                                       $116,779   $109,370   $280,674   $231,665
                                       ========   ========   ========   ========

*Reclassified for comparative purposes

(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).

(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.


                                      -10-
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                          Notes to Financial Statements
                                December 31, 1997
                                   (Unaudited)


These service include site visits and evaluations of the subsidiary
partnerships' performance.

(c) Property management fees incurred by the Local Partnerships amounted to
$22,880 and $17,468 and $62,979 and $27,680 for the three and nine months ended
December 31, 1997 and 1996, respectively. Of these fees $8,624 and $908 and
$24,977 and $6,615 were incurred to affiliates of the subsidiary partnerships'
general partners.

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


                                      -11-
<PAGE>

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

Liquidity and Capital Resources

The Partnership's primary source of funds is the proceeds of its offering. Other
sources of funds include interest earned on such proceeds which will be invested
in tax-exempt money market instruments pending acquisition of and final payments
to Local Partnerships and a working capital reserve in the original amount of
2.5% of gross equity raised. The solicitation for the subscription of BACs was
terminated as of May 22, 1996 and the final closing occurred on August 15, 1996.
The Partnership has received $45,844,000 in gross proceeds for BACs pursuant to
a public offering, resulting in net proceeds available for investment of
approximately $36,446,000 after volume discounts, payment of sales commissions,
acquisition fees and expenses, organization and offering expenses and
establishment of a working capital reserve.

As of December 31, 1997, the Partnership has invested approximately $27,535,000
(including approximately $1,161,000 classified as a loan repayable from
sale/refinancing proceeds in accordance with the Contribution Agreement and not
including acquisition fees of approximately $1,477,000) of net proceeds in nine
Local Partnerships of which approximately $13,398,000 remains to be paid to the
Local Partnerships (including approximately $2,313,000 being held in escrow) as
certain benchmarks, such as occupancy level, must be attained prior to the
release of the funds. Three Local Partnerships were also acquired during the
nine months ended December 31, 1997 for a purchase price of approximately
$12,133,000 (not including an acquisition fee of approximately $603,000) of
which approximately $5,190,000 remains to be paid. During the nine months ended
December 31, 1997 the Partnership exercised its option to purchase an additional
48.7% interest in one Local Partnership for a purchase price of approximately
$529,000 (all of which was paid). The Partnership has approximately $8,911,000
available for future investments. During the nine months ended December 31,
1997, approximately $6,670,000 was paid to Local Partnerships, including
purchase price adjustments (none of which was released from escrow). An
additional $1,549,000 was placed into escrow for purchase price payments during
the nine months ended December 31, 1997. The Partnership will be acquiring
additional properties, and the Partnership may be required to fund potential
purchase price adjustments based on tax credit adjustor clauses. Such
adjustments resulted in a net increase in purchase price of approximately
$53,000 during the nine months ended December 31, 1997.


                                      -12-
<PAGE>

For the nine months ended December 31, 1997, cash and cash equivalents of the
Partnership and its six consolidated Local Partnerships decreased approximately
$10,844,000 due to an increase in property and equipment ($998,000), an increase
in construction in progress ($12,763,000), an increase in investments available
for sale ($1,000,000), an increase in cash held in escrow relating to investing
activities ($1,549,000) and an increase in other assets relating to investing
activities ($719,000) which exceeded cash provided by operating activities
($601,000), an increase in accounts payable and other liabilities relating to
investing activities ($596,000), a net increase in due to local general partners
and affiliates relating to investing activities ($473,000), a net decrease in
deferred costs relating to investing and financing activities ($513,000) and net
proceeds from mortgage and construction loans ($4,001,000). Included in the
adjustments to reconcile the net loss to cash provided by operations is
depreciation and amortization of approximately $485,000.

A working capital reserve of approximately $1,146,000 (2.5% of gross equity) has
been established from the Partnership's funds available for investment, which
includes amounts which may be required for potential purchase price adjustments
based on tax credit adjustor clauses. At December 31, 1997 and March 31, 1997,
none of this reserve was used. The General Partner believes that these reserves,
plus any cash distributions received from the operations of the Local
Partnerships, will be sufficient to fund the Partnership's ongoing operations
for the foreseeable future. As of December 31, 1997, and 1996, there has been no
cash distributions from the Local Partnerships. Management anticipates receiving
distributions in the future, although not to a level sufficient to permit
providing cash distributions to the BACs holders.

The property owned by one of the Local Partnerships in which the Partnership has
invested has been in operation and has maintained stable occupancy since
1990.

The Partnership has negotiated Development Deficit Guarantees with the eight
other Local Partnerships in which it has invested. The Local General Partners
and/or their affiliates have agreed to fund development deficits through the
breakeven dates of each of the eight Local Partnerships.

The Partnership has negotiated Operating Deficit Guaranty Agreements with the
eight Local Partnerships by which the general partners of such Local
Partnerships and/or their affiliates have agreed to fund operating deficits for
a specified period of time. The terms of the Operating Deficit Guaranty
Agreements vary for each of these Local Partnerships, with maximum dollar
amounts to be funded for a specified period of time, generally 


                                      -13-
<PAGE>

seven years, commencing on the break-even date. The gross amount of the
Operating Deficit Guarantees aggregates approximately $1,848,000 as of December
31, 1997.

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

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

The Partnership has invested or committed for investment approximately 76% of
the net proceeds available for investment in nine Local Partnerships, of which
two commenced to generate tax credits in 1996, two will commence to generate tax
credits in 1997 and five are anticipated to commence to generate tax credits in
1998.

Management is not aware of any trends or events, commitments or uncertainties,
which have not otherwise been disclosed that will or are likely to impact
liquidity in a material way. Management believes the only impact would be from
laws that have not yet been adopted. The portfolio will be diversified by the
location of the properties around the United States so that if one area of the
country is experiencing downturns in the economy, the remaining properties in
the portfolio may be experiencing upswings. However the geographic
diversification of the portfolio may not protect against a general downturn in
the national economy. The tax credits will be attached to the project for a
period of ten years, and will be transferable with the property during the
remainder of such ten-year period. If the General Partner determined that a sale
of a property is warranted, the remaining tax credits would transfer to the new
owner, thereby adding value to the property on the market, which are not
included in the financial statement carrying amount.

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

As of December 31, 1997 and 1996, the Partnership had acquired an interest in
nine and six Local Partnerships, respectively, six and three of which were
consolidated at December 31, 1997 and 1996. The Partnership intends to utilize
the net proceeds of the offering to acquire additional interests in Local
Partnerships.

The Partnership's results of operations for the three and nine months ended
December 31, 1997 and 1996 consisted primarily of 


                                      -14-
<PAGE>

(1) approximately $288,000 and $304,000 and $831,000 and $770,000, respectively,
of tax-exempt interest income earned on funds not currently invested in Local
Partnerships and (2) the results of the Partnership's investment in five of six
and three of three consolidated Local Partnerships, respectively.

For the three and nine months ended December 31, 1997 as compared to 1996,
rental income and all categories of expenses increased except general and
administrative, repairs and maintenance, taxes and insurance and the results of
operations are not comparable due to the acquisition, construction and rent up
of properties, and are not reflective of future operations of the Partnership
due to uncompleted property construction, rent up of properties and the
continued utilization of the net proceeds of the Offering to invest in Local
Partnerships. In addition, interest income will decrease in future periods since
a substantial portion of the proceeds from the Offering will be included in or
released to Local Partnerships. Other income decreased approximately $7,000 for
the three months ended December 31, 1997 as compared to 1996 primarily due to a
decrease in interest income as a result of the acquisition of and the release of
proceeds to the Local Partnerships. General and administrative decreased
approximately $21,000 for the three months ended December 31, 1997 as compared
to 1996, primarily due to the write-off of acquisition expenses for an abandoned
project in 1996 and a decrease in legal and other professional fees at one Local
Partnership. Repairs and maintenance and insurance decreased approximately
$17,000 and $9,000, respectively, for the three months ended December 31, 1997
as compared to 1996, primarily due to operations not beginning until June 1996
at one Local Partnership. Taxes decreased approximately $16,000 for the three
months ended December 31, 1997 as compared to 1996, primarily due to the
reduction of taxes by the city as a result of their low income housing status at
one Local Partnership.

For the three months ended December 31, 1997 and 1996, zero and one of the
Partnership's six and three consolidated properties, respectively, completed
construction and were in various stages of rent up. In addition, zero and one of
the properties, respectively, had completed construction in a previous fiscal
quarter, but were in various stages of rent up for the three months. Also, for
the three months ended December 31, 1997 and 1996, three and one of the
properties had completed construction and were rented up in a previous fiscal
quarter. For the nine months ended December 31, 1997 and 1996, zero and one of
the Partnership's six and three consolidated properties, respectively, completed
construction and were in various stages of rent up. In addition, one and one of
the properties, respectively, had completed construction in a previous fiscal
year, but were in various stages of rent up for the nine 


                                      -15-
<PAGE>

months. Also, for the nine months ended December 31, 1997 and 1996, two and zero
of the properties had completed construction and were rented up in a previous
fiscal year. As of the end of the nine months ended December 31, 1997 and 1996,
three and one of the Partnership's six and three consolidated properties,
respectively, were still under construction and three and two of the properties,
respectively, had construction loans with commitments for permanent financing.


                                      -16-
<PAGE>

                           PART II. OTHER INFORMATION

Item 1. Legal Proceedings - None

Item 2. Changes in Securities - None

Item 3. Defaults Upon Senior  Securities - None

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

Item 5. Other Information - None

Item 6. Exhibits and Reports on Form 8-K

        (a) Exhibits

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

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

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

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

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

            (27)  Financial Data Schedule (filed herewith)

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

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


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


                                      -17-
<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:  February 12, 1998

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

Date:  February 12, 1998

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