UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)


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


For the quarterly period ended September 30, 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)

                                                   ============     ===========
                                                   September 30,      March 31,
                                                        1997            1997
                                                   ------------     -----------
ASSETS

Property and equipment at cost,
  net of accumulated depreciation
  of $662,884 and $351,046,
  respectively                                      $17,000,991     $19,801,865
Construction in progress                              9,565,976       1,010,368
Cash and cash equivalents                            10,711,641      17,061,164
Investments available for sale                       20,700,000      16,200,000
Cash held in escrow                                     865,169         865,896
Deferred costs, net of accumulated
  amortization
  of $32,165 and $21,830, respectively                2,251,950       2,179,235
Other assets                                            753,006         262,530
                                                    -----------     -----------
  Total assets                                      $61,848,733     $57,381,058
                                                    ===========     ===========

LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
  Mortgage notes payable                            $ 9,569,767     $ 9,226,190
  Construction loans payable                          6,608,504       3,790,102
  Accounts payable and other
   liabilities                                        3,656,847       2,531,437
  Due to local general partners and
   affiliates                                         1,705,382       1,264,805
  Due to general partner and affiliates                 139,174         212,701
                                                    -----------     -----------
   Total liabilities                                 21,679,674      17,025,235
                                                    -----------     -----------

Minority interest                                      (720,453)       (718,978)
                                                    -----------     -----------
Partners' capital:
  Limited partners (45,844 BACs
   issued and outstanding)                           40,888,150      41,071,586
  General partner                                         1,362           3,215
                                                    -----------     -----------
   Total partners' capital                           40,889,512      41,074,801
                                                    -----------     -----------
   Total liabilities and partners'
    capital                                         $61,848,733     $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        Six Months Ended
                                      September 30,            September 30,
                                 ---------------------   -----------------------
                                    1997        1996        1997          1996
                                 ---------------------   -----------------------
Revenues
  Rental income                  $ 329,989    $119,372   $  633,270     $167,731
  Other income
   (principally interest
   on capital
   contributions)                  293,051     262,609      591,269      501,609
                                 ---------    --------   ----------     --------
  Total revenues                   623,040     381,981    1,224,539      669,340
                                 ---------    --------   ----------     --------
Expenses
  General and
   administrative                  131,417     101,778      239,232      148,164
  General and
  administrative-
   related parties
   (Note 2)                         80,094      87,654      163,895      126,800
  Repairs and
   maintenance                      48,098      12,260       84,914       15,331
  Operating                         66,307      16,762      139,287       29,017
  Taxes                             46,445           0       46,445            0
  Insurance                         20,736           0       37,105       10,423
  Interest                         190,961      59,166      378,252       74,823
  Depreciation and
   amortization                    161,119      44,729      322,173       76,712
                                 ---------    --------   ----------     --------
  Total expenses                   745,177     322,349    1,411,303      481,270
                                 ---------    --------   ----------     --------

Income (loss)
  before minority
  interest                        (122,137)     59,632     (186,764)     188,070
Minority interest
  in loss of subsidiary
  partnerships                         610         491        1,475          831
                                 ---------    --------   ----------     --------
Net income (loss)                $(121,527)   $ 60,123   $ (185,289)    $188,901
                                 =========    ========   ==========     ========
Net income (loss) -
  limited partners               $(120,312)   $ 59,522   $ (183,436)    $187,012
                                 =========    ========   ==========     ========

Weighted average
  number of BACs
  outstanding                       45,844      39,595       45,844       35,595
                                 =========    ========   ==========     ========
Net income (loss)
  per weighted
  average BAC                    $   (2.62)   $   1.50   $    (4.00)    $   5.25
                                 =========    ========   ==========     ========


          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                                  (185,289)        (183,436)     (1,853)
                                       -----------      -----------      ------
Partners' capital -
September 30, 1997                     $40,889,512      $40,888,150      $1,362
                                       ===========      ===========      ======


          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)

                                                  =============================
                                                        Six Months Ended
                                                          September 30,
                                                  -----------------------------
                                                     1997              1996
                                                  -----------------------------
Cash flows from operating activities:
  Net income (loss)                               $  (185,289)     $    188,901
                                                  -----------      ------------
  Adjustments to reconcile net
   income (loss) to net cash
   provided by operating activities:
  Depreciation and amortization                       322,173            76,712
  Minority interest in loss of
   subsidiary properties                               (1,475)             (831)
  Decrease in cash held in escrow                         727                 0
  Increase in other assets                            (44,920)          (70,491)
  Increase in accounts
   payable and other liabilities                      176,430            48,548
  Increase in due to local general
   partners and affiliates                             60,000            15,056
  (Decrease) increase in due to
   general partner and affiliates                     (73,527)           80,425
                                                  -----------      ------------
   Total adjustments                                  439,408           149,419
                                                  -----------      ------------

  Net cash provided by operating
   activities                                         254,119           338,320
                                                  -----------      ------------

Cash flows from investing activities:
  Increase in property and equipment                 (712,486)      (11,026,806)
  Increase in construction in progress             (5,354,086)       (1,669,588)
  Decrease in cash held in escrow                           0         1,214,928
  Increase in accounts payable and
   other liabilities                                  948,980           600,157
  Increase in other assets                           (445,556)                0
  Increase in due to local general
   partners and affiliates                          1,156,046            81,719
  Decrease in due to local general
   partners and affiliates                           (775,469)                0
  Increase in investments available
   for sale                                        (4,500,000)      (11,297,588)
  Increase in deferred costs                          (74,778)       (1,122,563)
                                                  -----------      ------------

  Net cash used in investing
   activities                                      (9,757,349)      (23,219,741)
                                                  -----------      ------------


          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)

                                                    ===========================
                                                         Six Months Ended
                                                           September 30,
                                                    ---------------------------
                                                       1997             1996
                                                    ---------------------------
Cash flows from financing activities:
  Proceeds from mortgage notes                          363,124      10,826,369
  Repayments of mortgage notes                          (19,547)              0
  Proceeds from construction loans                    4,095,039               0
  Repayments of construction loans                   (1,276,637)              0
  Increase in offering costs                                  0      (2,035,085)
  Increase in deferred costs                             (8,272)       (179,948)
  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                                          3,153,707      27,471,544
                                                    -----------     -----------

Net increase (decrease) in cash and
  cash equivalents                                   (6,349,523)      4,590,123
Cash and cash equivalents at
  beginning of period                                17,061,164       8,484,832
                                                    -----------     -----------

Cash and cash equivalents at
  end of period                                     $10,711,641     $13,074,955
                                                    ===========     ===========

Supplemental disclosures of
  noncash investing activities:
  Capitalization of deferred
   acquisition costs                                $         0     $   174,581
  Consolidation of investment in
   subsidiary partnership:*
   Decrease in property and
    equipment                                       $ 3,201,522     $         0
   Increase in construction in
    progress                                        $(3,201,522)    $         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
                               September 30, 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 September 30, 1997, the Partnership has acquired a limited partnership
interest in six subsidiary partnerships, all of which have been consolidated.
The Partnership anticipates acquiring limited partnership interests in
additional subsidiary partnerships in the future. Except for the interest in
Westminster Park Plaza ("Westminster"), the Partnership's investment in each
subsidiary partnership represents 98.99% 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%. 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 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 Commis-

                                      -7-
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                          Notes to Financial Statements
                               September 30, 1997
                                   (Unaudited)


sion 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 September
30, 1997 and March 31, 1997 the Partnership raised a total of $45,844,000
representing 45,844 BACs.

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

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 $7,053 and $0 and $77,592 and $22 for the three and six months ended
September 30, 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.

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 ad-


                                      -8-
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                          Notes to Financial Statements
                               September 30, 1997
                                   (Unaudited)


justments) necessary to present fairly the financial position of the Partnership
as of September 30, 1997, the results of operations for the three and six months
ended September 30, 1997 and 1996 and cash flows for the six months ended
September 30, 1997 and 1996. However, the operating results for the six months
ended September 30, 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 September 30, 1997 and March 31, 1997, $2,750,640 of such
costs have been incurred, of which $874,501 at each date has been capitalized.

B)  Public Offering Costs
Costs incurred to organize the Partnership and certain costs of offering the
BACs including but not limited to legal, accounting and registration fees are
considered organization and offering costs. These costs have been capitalized.
Related Equities Corporation (the "Dealer Manger") is entitled to a
non-accountable organization and offering expense allowance equal to 2.5% of
Gross Proceeds, in consideration of which it is obligated to pay all such
expenses up to the amount of such allowance. The Partnership is obligated to pay
all such expenses that are in excess of 2.5% of Gross Proceeds and up to 3.5% of
Gross Proceeds, and the Dealer Manager is responsible for all such expenses in
excess of 3.5% of Gross Proceeds. As of both September 30, 1997 and March 31,
1997, offering costs totalled $1,554,540 and along with selling commissions (see
Note 2C) are charged directly to limited partners' capital.


                                      -9-
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                          Notes to Financial Statements
                               September 30, 1997
                                   (Unaudited)


C)  Selling Commissions and Fees
The Partnership has paid up to 7.5% of the aggregate purchase price of BACs
sold, without regard to quantity discounts, to Related Equities Corporation. To
the extent other broker/dealers sold the interests, such amounts were fully
reallowed to the other broker/dealers. As of both September 30, 1997 and March
31, 1997, $3,437,175 was paid or incurred to Related Equities Corporation and
then fully reallocated to other unaffiliated broker/dealers.

D)  Other Related Party Expenses
The costs incurred to related parties for the three and six months ended
September 30, 1997 and 1996 were as follows:

                                        Three Months Ended    Six Months Ended
                                            September 30,       September 30,
                                         -----------------   -------------------
                                           1997      1996      1997       1996
                                         -----------------   -------------------
Partnership
  management
  fees (a)                               $42,933   $18,452   $ 84,229   $ 36,897
Expense
  reimburse-
  ment (b)                                26,955    59,585     60,813     77,191
Property manage-
  ment fees (c)                            8,706     7,117     16,353     10,212
Local administrative
  fee (d)                                  1,500     2,500      2,500      2,500
                                         -------   -------   --------   --------

                                         $80,094   $87,654   $163,895   $126,800
                                         =======   =======   ========   ========

(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-
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                          Notes to Financial Statements
                               September 30, 1997
                                   (Unaudited)


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

(c) Property management fees incurred by the Local Partnerships amounted to
$20,492 and $7,117 and $40,099 and $10,212 for the three and six months ended
September 30, 1997 and 1996, respectively. Of these fees $8,706 and $7,117 and
$16,353 and $10,212 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.

Note 3 - Subsequent Event

The Partnership has invested in one Local Partnership during the period of
October 1, 1997 to November 18, 1997.

                                                         Equity
Date                 Partnership Name                  Investment        Units
----                 ----------------                  ----------        -----

October 1997         Sojourner Douglass, L.P.          $917,740          20


                                      -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 September 30, 1997, the Partnership has invested approximately $15,402,000
(including approximately $902,000 classified as a loan repayable from
sale/refinancing proceeds in accordance with the Contribution Agreement and not
including acquisition fees of approximately $875,000) of net proceeds in six
Local Partnerships of which approximately $7,189,000 remains to be paid to the
Local Partnerships (including approximately $764,000 being held in escrow) as
certain benchmarks, such as occupancy level, must be attained prior to the
release of the funds. During the six months ended September 30, 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). In addition, there were upward purchase price adjustments during the
six months ended September 30, 1997 in the amount of $73,000 relating to two
Local Partnerships which were purchased in a previous fiscal year. The
Partnership has approximately $21,044,000 available for future investments.
During the six months ended September 30, 1997, approximately $951,000 was paid
to Local Partnerships (none of which was released from escrow). 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 six months ended September 30, 1997.

For the six months ended September 30, 1997, cash and cash equivalents of the
Partnership and its six consolidated Local Partnerships decreased approximately
$6,350,000 due to an increase in property and equipment ($712,000), an increase
in construction in progress ($5,354,000), an increase in investments available
for sale ($4,500,000), an increase in other assets relating to investing
activities ($446,000) and an increase in deferred costs relating to investing
and financing activities ($83,000) which exceeded cash provided by operating
activities ($254,000), an increase in accounts payable and other liabilities
relating to investing activities ($949,000), a net increase in due to local
general partners and af-


                                      -12-
<PAGE>


filiates relating to investing activities ($381,000) and net proceeds from
mortgage and construction loans ($3,162,000). Included in the adjustments to
reconcile the net loss to cash flow from operations is depreciation and
amortization of approximately $322,000.

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 September 30, 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 September 30, 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 five
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 five Local Partnerships.

The Partnership has negotiated Operating Deficit Guaranty Agreements with the
five 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 three years, commencing on the break-even
date. The gross amount of the Operating Deficit Guarantees aggregates
approximately $1,008,000 as of September 30, 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.


                                      -13-
<PAGE>


The Partnership has invested or committed for investment approximately 42% of
the net proceeds available for investment in six Local Partnerships, of which
two commenced to generate tax credits in 1996 and four are currently anticipated
to commence to generate tax credits in 1997. The Partnership does not anticipate
that it will acquire, prior to the end of 1997, interests in any additional
Local Partnerships which will generate tax credits in 1997.

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 September 30, 1997 and 1996, the Partnership had acquired an interest in
six and three Local Partnerships, respectively, all of which were consolidated
at September 30, 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 six months ended
September 30, 1997 and 1996 consisted primarily of (1) approximately $267,000
and $256,000 and $543,000 and $466,000, 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 three of six and three of three
consolidated Local Partnerships, respectively.

For the three and six months ended September 30, 1997 as compared to 1996, all
categories of income and expenses increased except general and
administrative-related parties 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
construc-

                                      -14-
<PAGE>


tion, 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 it is anticipated that a substantial portion of
the proceeds from the Offering will be invested in Local Partnerships. General
and administrative-related parties decreased approximately $8,000 for the three
months ended September 30, 1997 as compared to 1996, primarily due to an
underaccrual, at June 30, 1996, of expense reimbursements payable to the General
Partner and its affiliates for costs incurred on behalf of the Partnership which
was adjusted in the second quarter.

For the three months ended September 30, 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
quarter, but were in various stages of rent up for the three months. Also, for
the three months ended September 30, 1997 and 1996, two and zero of the
properties had completed construction and were rented up in a previous fiscal
quarter. For the six months ended September 30, 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 six months. Also, for the
six months ended September 30, 1997 and 1996, two and zero of the properties had
completed construction and were rented up in a previous fiscal year.


                                      -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:  November 18, 1997

                                       By:  /s/ Alan P. Hirmes
                                            ------------------
                                            Alan P. Hirmes,
                                            Senior Vice President
                                            (principal financial officer)
                                       
Date:  November 18, 1997               
                                       
                                       By:  /s/ Richard A. Palermo
                                            ----------------------
                                            Richard A. Palermo,
                                            Treasurer
                                            (principal accounting officer)