<PAGE>

                                  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 June 30, 2000

                                       OR

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

                         Commission File Number 33-89968

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

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

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

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

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes  X   No
    ---     ---

<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                           Consolidated Balance Sheets
                                   (Unaudited)
<TABLE>
<CAPTION>
                                         -----------   ------------
                                           June 30,      March 31,
                                            2000          2000
                                         -----------   ------------
<S>                                      <C>           <C>
ASSETS
Property and equipment at cost,
  net of accumulated depreciation
  of $5,180,772 and $4,577,654,
  respectively                           $73,861,649   $74,451,342
Cash and cash equivalents                  5,320,557     4,384,477
Investments available for sale             1,300,000     3,100,000
Cash held in escrow                        2,208,648     1,670,171
Deferred costs, net of accumulated
  amortization of $161,249 and $133,414,
  respectively                             1,980,774     2,008,609
Other assets                                 605,732       772,771
                                         -----------   -----------
Total assets                             $85,277,360   $86,387,370
                                         ===========   ===========
</TABLE>


                                       -2-
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                           Consolidated Balance Sheets
                                   (Unaudited)
                                   (continued)
<TABLE>
<CAPTION>
                                         -----------   ------------
                                           June 30,      March 31,
                                            2000          2000
                                         -----------   ------------
<S>                                      <C>           <C>
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Liabilities:
Mortgage notes payable                   $35,502,228   $35,515,034
Construction loans payable                 3,243,234     3,243,234
Accounts payable and other
  liabilities                              5,269,348     4,942,532
Due to local general partners and
  affiliates                               3,463,789     3,822,627
Due to general partner and affiliates        842,380       790,655
                                         -----------   -----------
Total liabilities                         48,320,979    48,314,082
                                         -----------   -----------

Minority interest                          1,957,693     1,998,515
                                         -----------   -----------
Partners' capital (deficit):
Limited partners (45,844 BACs
  issued and outstanding)                 35,056,234    36,121,558
General partner                              (57,546)      (46,785)
                                         -----------   -----------
Total partners' capital (deficit)         34,998,688    36,074,773
                                         -----------   -----------
Total liabilities and partners'
  capital (deficit)                      $85,277,360   $86,387,370
                                         ===========   ===========

See Accompanying Notes to Consolidated Financial Statements.
</TABLE>


                                       -3-
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      Consolidated Statements of Operations
                                   (Unaudited)
<TABLE>
<CAPTION>
                                         -------------------------
                                           Three Months Ended
                                                June 30,
                                         -------------------------
                                             2000         1999
                                         -----------   -----------
<S>                                       <C>          <C>
Revenues
  Rental income                           $1,245,706   $   804,919
  Other income (principally interest
   on capital contributions)                  97,885       149,380
                                         -----------   ----------
Total revenues                             1,343,591       954,299
                                         -----------   ----------

Expenses
  General and administrative                 469,166       253,193
  General and administrative-
    related parties (Note 2)                 150,746       131,785
  Repairs and maintenance                    195,244       132,889
  Operating                                  161,752        79,915
  Taxes                                       95,585        18,767
  Insurance                                   67,597        37,771
  Interest                                   657,228       261,849
  Depreciation and amortization              632,578       358,931
                                         -----------   ----------
Total expenses                             2,429,896     1,275,100
                                         -----------   ----------

Loss before minority interest
  and extraordinary item                  (1,086,305)     (320,801)
Minority interest in loss income
  of subsidiary partnerships                  10,220         4,520
                                         -----------   ----------
Loss before extraordinary item            (1,076,085)     (316,281)
Extraordinary item-cumulative
  effect of a change in accounting
  principle - amortization of
  organization costs                               0      (132,520)
                                         -----------   ----------
Net loss                                 $(1,076,085)  $  (448,801)
                                         ===========   ==========

Limited Partners Share:
Loss before extraordinary item           $(1,065,324)  $  (313,118)
Extraordinary item                                 0      (131,195)
                                         -----------   ----------

Net loss - limited partners              $(1,065,324)  $  (444,313)
                                         ===========   ==========

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

Net loss per BAC before
  extraordinary item                     $    (23.24)  $     (6.83)
Extraordinary item per BAC                         0         (2.86)
                                         -----------   ----------

Net loss per BAC                         $    (23.24)  $    (9.69)
                                         ===========   ==========
</TABLE>

See Accompanying Notes to Consolidated Financial Statements.


                                       -4-
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
        Consolidated Statement of Changes in Partners' Capital (Deficit)
                                   (Unaudited)
<TABLE>
<CAPTION>
                   ---------------------------------------
                                    Limited      General
                        Total       Partners     Partner
                   ---------------------------------------
<S>                <C>           <C>           <C>
Partners' capital
  (deficit) -
  April 1, 2000    $36,074,773   $36,121,558   $  (46,785)
Net loss            (1,076,085)   (1,065,324)     (10,761)
                    -----------   -----------   ----------
Partners' capital
  (deficit)-
  June 30, 2000    $34,998,688   $35,056,234   $  (57,546)
                    ==========    ==========    ==========
</TABLE>

See Accompanying Notes to Consolidated Financial Statements.


                                       -5-
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>
                                          ---------------------------
                                             Three Months Ended
                                                   June 30,
                                          ---------------------------
                                             2000             1999
                                          ---------------------------
<S>                                       <C>            <C>
Cash flows from operating activities:
Net loss                                  $(1,076,085)   $ (448,801)
                                          -----------    ----------
Adjustments to reconcile net loss
  to net cash (used in) provided by
  operating activities:
Depreciation and amortization                 632,578       358,931
Cumulative effect of change in
  accounting principle - amortization
  of organization costs                             0       132,520
Minority interest in loss
  of subsidiary properties                    (10,220)       (4,520)
Increase in cash held in escrow              (538,477)     (469,027)
Decrease (increase) in other assets           167,039        (8,304)
Increase in accounts payable
  and other liabilities                       490,415       706,454
Increase in due to local general
  partners and affiliates                     144,615        45,233
Decrease in due to local general
  partners and affiliates                    (503,453)            0
Increase in due to general
  partner and affiliates                       51,725       172,051
                                          -----------    ----------
  Total adjustments                           434,222       933,338
                                          -----------    ----------

Net cash (used in) provided by
  operating activities                       (641,863)      484,537
                                          -----------    ----------


                                      -6-
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                                   (Unaudited)
                                   (continued)
<CAPTION>
                                          ---------------------------
                                                Three Months Ended
                                                     June 30,
                                          ---------------------------
                                                2000         1999
                                          ---------------------------
<S>                                       <C>            <C>
Cash flows from investing activities:
Increase in property and equipment            (13,425)   (5,426,973)
Increase in construction in progress                0      (796,907)
Decrease in cash held in escrow                     0       185,509
Decrease in accounts payable and
  other liabilities                          (163,599)            0
Increase in due to local general
  partners and affiliates                           0       787,807
Decrease in due to local general
  partners and affiliates                           0      (626,965)
Decrease in investments
  available for sale                        1,800,000     2,450,000
Increase in deferred costs                          0       (30,176)
                                          -----------    ----------
Net cash provided by (used in)
  investing activities                      1,622,976    (3,457,705)
                                          -----------    -----------
Cash flows from financing activities:
Proceeds from mortgage notes                   19,764             0
Repayments of mortgage notes                  (32,570)      (21,519)
Proceeds from construction loans                    0     1,987,694
Increase in deferred costs                     (1,625)     (181,343)
Decrease in capitalization of
  consolidated subsidiaries
  attributable to minority interest           (30,602)            0
                                          -----------    ----------
Net cash (used in) provided by
  financing activities                        (45,033)    1,784,832
                                          -----------    ----------

Net increase (decrease) in cash
  and cash equivalents                        936,080    (1,188,336)
Cash and cash equivalents at
  beginning of period                       4,384,477     3,438,165
                                          -----------    ----------
Cash and cash equivalents at
  end of period                            $5,320,557    $2,249,829
                                          ===========    ==========


                                      -7-
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                                   (Unaudited)
                                   (continued)
<CAPTION>
                                          ---------------------------
                                                Three Months Ended
                                                     June 30,
                                          ---------------------------
                                                2000         1999
                                          ---------------------------
<S>                                       <C>            <C>
Supplemental disclosures of
  noncash investing and financing
  activities:

Property and equipment
  reclassified from construction
  in progress                              $        0    11,273,436

Conversion of construction loans
  to mortgage notes                        $        0     2,500,000


See Accompanying Notes to Consolidated Financial Statements.
</TABLE>


                                      -8-
<PAGE>

                     INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                          Notes to Financial Statements
                                  June 30, 2000
                                   (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 June 30, 2000, the Partnership has acquired a limited partnership interest
in fourteen subsidiary partnerships, all of which have been consolidated. The
Partnership does not anticipate acquiring limited partnership interests in any
additional subsidiary partnerships. The Partnership's investment in each Local
Partnership represents from 98.99% to 99.98% with one Local Partnership at
58.12% of the partnership interests in the Local Partnership. Through the rights
of the Partnership and/or an affiliate of the General Partner, which affiliate
has a contractual obligation to act on behalf of the Partnership, to remove the
general partner of the subsidiary partnerships and to approve certain major
operating and financial decisions, the Partnership has a controlling financial
interest in the subsidiary partnership.

For financial reporting purposes, the Partnership's fiscal quarter ends June 30.
All subsidiaries have fiscal quarters ending March 31. Accounts of the
subsidiaries have been adjusted for intercompany transactions from April 1
through June 30. The Partnership's fiscal quarter ends June 30 in order to allow
adequate time for the subsidiaries financial statements to be prepared and
consolidated.

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

                                      -9-
<PAGE>

                     INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                          Notes to Financial Statements
                                  June 30, 2000
                                   (Unaudited)

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

Losses attributable to minority interest which exceed the minority interests'
investment in a subsidiary have been charged to the Partnership. Such losses
aggregated approximately $3,000 and $2,000 for the three months ended June 30,
2000 and 1999, 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.

In April of 1998, the Financial Accounting Standards Board issued Statement of
Position 98-5 ("SOP 98-5") "Reporting on the Costs of Start-Up Activities". This
statement provides guidance on the financial reporting of start-up costs and
organization costs. This statement is effective for all fiscal quarters of
fiscal years beginning after December 15, 1998. Such change in accounting
principle amounted to a charge to operations of $132,520 for the three months
ended June 30, 1999.

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,
2000.

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 June 30, 2000 and the results of operations and its cash flows
for the three months ended June 30, 2000 and 1999. However, the operating
results for the three months ended June 30, 2000 may not be indicative of the
results for the year.


                                      -10-
<PAGE>

                     INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                          Notes to Financial Statements
                                  June 30, 2000
                                   (Unaudited)

Note 2 - Related Party Transactions

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


The costs incurred to related parties for the three months ended June 30, 2000
and 1999 were as follows:

<TABLE>
<CAPTION>
                                       -------------------------
                                          Three Months Ended
                                                June 30,
                                       -------------------------
                                           2000          1999
                                       -------------------------
<S>                                    <C>            <C>
Partnership management fees (a)        $    82,399   $    69,369
Expense reimbursement (b)                   28,831        40,845
Local administrative fee (c)                 9,500         5,000
                                       -----------   -----------
Total general and administrative-
  General Partner                          120,730       115,214
                                       -----------   -----------
Property management fees incurred
  to affiliates of the subsidiary
  partnerships' general partners (d)        30,016        16,571
                                       -----------   -----------
Total general and administrative-
  related parties                      $   150,746   $   131,785
                                       ===========   ===========
</TABLE>

(a) The General Partner is entitled to receive a partnership management fee,
after payment of all Partnership expenses, which together with the annual local
administrative fees will not exceed a maximum of 0.5% per annum of invested
assets (as defined in the Partnership Agreement), for administering the affairs
of the Partnership. Subject to the foregoing limitation, the partnership
management fee will be determined by the General Partner in its sole discretion
based upon its review of the Partnership's investments. Unpaid partnership
management fees for any year will be accrued without interest and will be
payable from working capital reserves or to the extent of available funds after
the Partnership has made distributions to the limited partners of sale or
refinancing proceeds equal to their original capital contributions plus a 10%
priority return thereon (to the extent not theretofore paid out of cash flow).
Partnership management fees owed to the General Partner amounting to
approximately $473,000 and $415,000 were accrued and unpaid as of June 30, 2000
and March 31, 2000, respectively.

(b) The Partnership reimburses the General Partner and its affiliates for actual
Partnership operating expenses incurred by the General Partner and its
affiliates on the Partnership's behalf. The amount of reim-


                                      -11-
<PAGE>

                     INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                          Notes to Financial Statements
                                  June 30, 2000
                                   (Unaudited)

bursement from the Partnership is limited by the provisions of the Partnership
Agreement. Another affiliate of the General Partner performs asset monitoring
for the Partnership. These services include site visits and evaluations of the
subsidiary partnerships' performance.

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

(d) Property management fees incurred by the Local Partnerships amounted to
$85,073 and $54,761 for the three months ended June 30, 2000 and 1999,
respectively. Of these fees $30,016 and $16,571 were incurred to affiliates of
the subsidiary partnerships' general partners.


                                      -12-
<PAGE>

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

LIQUIDITY AND CAPITAL RESOURCES

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

As of June 30, 2000, the Partnership has invested approximately $37,669,000
(including approximately $1,161,000 classified as a loan repayable from
sale/refinancing proceeds in accordance with the Contribution Agreement and not
including acquisition fees of approximately $1,771,000) of net proceeds in
fourteen Local Partnerships of which approximately $2,997,000 remains to be paid
to the Local Partnerships (including approximately $629,000 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, 2000,
approximately $765,000 was paid to Local Partnerships (none of which was
released from escrow). The Partnership has completed acquiring additional
properties, but the Partnership may be required to fund potential purchase price
adjustments based on tax credit adjustor clauses. There were no increases in
purchase price adjustments during the three months ended June 30, 2000.

For the three months ended June 30, 2000, cash and cash equivalents of the
Partnership and its fourteen consolidated Local Partnerships increased
approximately $936,000 due to a decrease in investments available for sale
($1,800,000) and proceeds from mortgage notes ($20,000) which exceeded cash used
in operating activities ($642,000), a decrease in accounts payable and other
liabilities relating to investing activities ($164,000), an increase in property
and equipment ($13,000), an increase in deferred costs relating to financing
activities ($2,000), repayments of mortgage notes ($33,000) and a decrease in
capitalization of consolidated subsidiaries attributable to minority interest
($31,000). Included in the adjustments to reconcile the net loss to cash used in
operations is depreciation and amortization of approximately $633,000.

A working capital reserve 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
June 30, 2000, there is approximately $1,048,000 in the working capital
reserves. The General Partner believes that these reserves, plus any cash
distributions received from the operations of the


                                      -13-
<PAGE>

Local Partnerships, will be sufficient to fund the Partnership's ongoing
operations for the foreseeable future. Cash distributions from the Local
Partnership will be relatively immaterial. During the three months ended June
30, 2000, there has been no cash distributions from the Local Partnerships.

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 June 30, 2000 and 1999, the Partnership had acquired an interest in
fourteen and ten Local Partnerships, all of which were consolidated at June 30,
2000 and 1999, respectively. The Partnership does not intend to acquire any
additional interests in Local Partnerships.

The Partnership's results of operations for the three months ended June 30, 2000
and 1999 consisted primarily of (1) approximately $39,000 and $120,000,
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 fourteen and ten consolidated Local Partnerships, respectively.

For the three months ended June 30, 2000 as compared to the corresponding period
in 1999, rental income and all categories of expenses increased 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 and rent up of properties. 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 $51,000 for the three months
ended June 30, 2000 as compared to the corresponding period in 1999


                                      -14-
<PAGE>

primarily due to a decrease in interest income as a result of the acquisition of
and the release of proceeds to the Local Partnerships.

Extraordinary item - amortization of organization costs decreased by
approximately $133,000 for the three months ended June 30, 2000 as compared to
the corresponding period in 1999 due to the adoption of SOP 98-5, pursuant to
which the Partnership is required to charge all unamortized organization costs
as of January 1, 1999.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

None


                                      -15-
<PAGE>

                           PART II. OTHER INFORMATION

Item 1.    Legal Proceedings - None

Item 2.    Changes in Securities - None

Item 3.    Defaults Upon Senior Securities - None

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

Item 5.    Other Information - None

Item 6.    Exhibits and Reports on Form 8-K

       (a) Exhibits

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

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

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

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

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

           (27)  Financial Data Schedule (filed herewith)

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

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

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


                                       -16-
<PAGE>
                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                      ------------------------------------
                                  (Registrant)


                      By: RELATED INDEPENDENCE L.L.C.,
                          General Partner

Date:  July 31, 2000

                          By:/s/ Alan P. Hirmes
                             ------------------
                             Alan P. Hirmes,
                             President and Member
                             (principal executive and financial officer)

Date:  July 31, 2000

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