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

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

| For the transition period from |   | to |   |
|--------------------------------|--------|----|--------|

| Delaware                                                       |   | 13-3809869                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |
|                                                           |   |                                 |
| 625 Madison Avenue, New York, New York                         |   | 10022                                |
| (Address of principal executive offices)                       |   | (Zip Code)                           |

| (212) 317-5700                                                                     |
|------------------------------------------------------------------------------------|
| Registrant’s telephone number, including area code                           |
|                                                                               |
|                                                                               |
| (Former name, former address and former fiscal year, if changed since last report) |

| Large accelerated filer  o                                                              |   | Accelerated filer  o                    |
|---------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|
|  Non-accelerated filer  o  (Do not check if a smaller reporting company) |   |  Smaller reporting company  þ |

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|                                                                                                             |   | December 31,2010 |        |   | March 31,2010 |   |
|------------------------------------------------------------------------------------------------------------------|--------|------------------|-------------|--------|---------------|--------|
|                                                                                                             |   |             |        |   |          |   |
|                                                                                                             |   |             |        |   |          |   |
| ASSETS                                                                                                           |   |             |        |   |          |   |
|  Operating assets                                                                                           |   |             |        |   |          |   |
| Property and equipment - (at cost, net of accumulated depreciation of $18,415,279 and $22,949,541, respectively) |   | $                | 14,170,351  |   |          | $      | 18,938,097 |   |
| Cash and cash equivalents                                                                                        |   |             | 1,455,931   |   |          |   | 1,176,371 |   |
| Cash held in escrow                                                                                              |   |             | 1,886,474   |   |          |   | 2,053,883 |   |
| Deferred costs (net of accumulated amortization of $594,295 and $723,892, respectively)                          |   |             | 468,700     |   |          |   | 314,520 |   |
| Due from local general partners and affiliates (Note 3)                                                          |   |             | 0           |   |          |   | 415,917 |   |
| Other assets                                                                                                     |   |             | 407,532     |   |          |   | 368,261 |   |
|  Total operating assets                                                                                     |   |             | 18,388,988  |   |          |   | 23,267,049 |   |
|  Assets of discontinued operations (Note 7)                                                                 |   |             |        |   |          |   |   |   |
| Property and equipment held for sale, net of accumulated depreciation of $5,355,102 and $0, respectively         |   |             | 3,967,290   |   |          |   | 0 |   |
| Other assets related to discontinued operations                                                                  |   |             | 851,051     |   |          |   | 0 |   |
| Total discontinued assets                                                                                        |   |             | 4,818,341   |   |          |   | 0 |   |
|  Total assets                                                                                               |   | $                | 23,207,329  |   |          | $      | 23,267,049 |   |
|  LIABILITIES AND PARTNERS’ DEFICIT                                                                    |   |             |        |   |          |   |   |   |
|  Operating liabilities                                                                                      |   |             |        |   |          |   |   |   |
| Mortgage notes payable                                                                                           |   | $                | 19,077,499  |   |          | $      | 24,703,113 |   |
| Accounts payable and other liabilities                                                                           |   |             | 481,702     |   |          |   | 554,586 |   |
| Accrued interest payable                                                                                         |   |             | 2,545,615   |   |          |   | 6,474,837 |   |
| Security deposit payable                                                                                         |   |             | 258,759     |   |          |   | 308,937 |   |
| Due to local general partners and affiliates (Note 3)                                                            |   |             | 1,813,452   |   |          |   | 1,760,553 |   |
| Due to general partners and affiliates (Note 3)                                                                  |   |             | 2,494,485   |   |          |   | 2,470,084 |   |
|  Total operating liabilities                                                                                |   |             | 26,671,512  |   |          |   | 36,272,110 |   |
|  Liabilities of discontinued operations (Note 7)                                                            |   |             |        |   |          |   |   |   |
| Mortgage notes payable of assets held for sale                                                                   |   |             | 6,813,956   |   |          |   | 0 |   |
| Other liabilities related to discontinued operations                                                             |   |             | 3,835,981   |   |          |   | 0 |   |
| Total discontinued liabilities                                                                                   |   |             | 10,649,937  |   |          |   | 0 |   |
|  Total liabilities                                                                                          |   |             | 37,321,449  |   |          |   | 36,272,110 |   |
|  Commitments and contingencies (Note 8)                                                                     |   |             |        |   |          |   |   |   |
|  Partners’ capital (deficit)                                                                          |   |             |        |   |          |   |   |   |
| Limited partners – 45,844 Beneficial Assignment Certificates (“BACs”) issued and outstanding   |   |             | (14,829,416 | )      |          |   | (13,728,173 | ) |
| General partners                                                                                                 |   |             | (556,444    | )      |          |   | (545,320 | ) |
|  Independence Tax Credit Plus L.P. IV total                                                                 |   |             | (15,385,860 | )      |          |   | (14,273,493 | ) |
|  Noncontrolling interests                                                                                   |   |             | 1,271,740   |   |          |   | 1,268,432 |   |
|  Total partners’ capital                                                                              |   |             | (14,114,120 | )      |          |   | (13,005,061 | ) |
|  Total liabilities and partners’ capital                                                              |   | $                | 23,207,329  |   |          | $      | 23,267,049 |   |
|   The accompanying notes are an integral part of these condensed consolidated financial statements.    |   |

----

|                                                                           |   |   | Three Months EndedDecember 31, |      |   | Nine Months EndedDecember 31, |   |
|--------------------------------------------------------------------------------|--------|--------|--------------------------------|-----------|--------|-------------------------------|--------|
|                                                                           |   |   | 2010                           |      |   | 2009*                         |   |   | 2010 |   |   | 2009* |   |
|                                                                           |   |   |                           |      |   |                          |   |   |   |   |   |   |   |   |   |   |
| Operations:                                                                    |   |   |                           |      |   |                          |   |   |   |   |   |   |   |   |   |   |
|  Revenues                                                                 |   |   |                           |      |   |                          |   |   |   |   |   |   |   |   |   |   |
| Rental income                                                                  |   |   | $                              | 1,057,154 |   |                          | $      | 1,028,013 |   |   | $ | 3,175,615 |   |   | $ | 3,134,665 |   |
| Other                                                                          |   |   |                           | 98,539    |   |                          |   | 40,766 |   |   |   | 149,008 |   |   |   | 161,686 |   |
|  Total revenues                                                           |   |   |                           | 1,155,693 |   |                          |   | 1,068,779 |   |   |   | 3,324,623 |   |   |   | 3,296,351 |   |
|  Expenses                                                                 |   |   |                           |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative                                                     |   |   |                           | 310,419   |   |                          |   | 286,029 |   |   |   | 934,669 |   |   |   | 913,276 |   |
| General and administrative-related parties (Note 3)                            |   |   |                           | 147,462   |   |                          |   | 177,323 |   |   |   | 485,781 |   |   |   | 501,436 |   |
| Repairs and maintenance                                                        |   |   |                           | 190,361   |   |                          |   | 210,912 |   |   |   | 531,194 |   |   |   | 577,402 |   |
| Operating and other                                                            |   |   |                           | 190,515   |   |                          |   | 159,223 |   |   |   | 533,136 |   |   |   | 526,951 |   |
| Real estate taxes                                                              |   |   |                           | 21,849    |   |                          |   | 29,955 |   |   |   | 84,183 |   |   |   | 91,713 |   |
| Insurance                                                                      |   |   |                           | 46,546    |   |                          |   | 49,474 |   |   |   | 138,510 |   |   |   | 151,039 |   |
| Interest                                                                       |   |   |                           | 248,367   |   |                          |   | 257,748 |   |   |   | 748,513 |   |   |   | 774,800 |   |
| Depreciation and amortization                                                  |   |   |                           | 204,934   |   |                          |   | 326,278 |   |   |   | 624,850 |   |   |   | 1,016,587 |   |
|  Total expenses from operations                                           |   |   |                           | 1,360,453 |   |                          |   | 1,496,942 |   |   |   | 4,080,836 |   |   |   | 4,553,204 |   |
|  Loss from operations                                                     |   |   |                           | (204,760  | )      |                          |   | (428,163 | ) |   |   | (756,213 | ) |   |   | (1,256,853 | ) |
| Loss from discontinued operations                                              |   |   |                           | (114,922  | )      |                          |   | (124,400 | ) |   |   | (342,013 | ) |   |   | (404,539 | ) |
|  Net loss                                                                 |   |   |                           | (319,682  | )      |                          |   | (552,563 | ) |   |   | (1,098,226 | ) |   |   | (1,661,392 | ) |
|  Net income attributable to noncontrolling interests from operations      |   |   |                           | (2,868    | )      |                          |   | (2,458 | ) |   |   | (14,516 | ) |   |   | (10,017 | ) |
| Net loss attributable to noncontrolling interests from discontinued operations |   |   |                           | 127       |   |                          |   | 135 |   |   |   | 375 |   |   |   | 441 |   |
|  Net income attributable to noncontrolling interests                      |   |   |                           | (2,741    | )      |                          |   | (2,323 | ) |   |   | (14,141 | ) |   |   | (9,576 | ) |
|  Net loss attributable to Independence Tax Credit Plus L.P. IV            |   |   | $                              | (322,423  | )      |                          | $      | (554,886 | ) |   | $ | (1,112,367 | ) |   | $ | (1,670,968 | ) |
|  Loss from operations – limited partners                            |   |   |                           | (205,552  | )      |                          |   | (426,315 | ) |   |   | (763,022 | ) |   |   | (1254,201 | ) |
| Loss from discontinued operations – limited partners                     |   |   |                           | (113,647  | )      |                          |   | (123,022 | ) |   |   | (338,221 | ) |   |   | (400,057 | ) |
|  Net loss – limited partners                                        |   |   | $                              | (319,199  | )      |                          | $      | (549,337 | ) |   | $ | (1,101,243 | ) |   | $ | (1,654,258 | ) |
|  Number of BACs outstanding                                               |   |   |                           | 45,844    |   |                          |   | 45,844 |   |   |   | 45,844 |   |   |   | 45,844 |   |
|  Loss from operations per weighted average BAC                            |   |   | $                              | (4.48     | )      |                          | $      | (9.30 | ) |   | $ | (16.64 | ) |   | $ | (27.36 | ) |
| Loss from discontinued operations per weighted average BAC                     |   |   |                           | (2.48     | )      |                          |   | (2.68 | ) |   |   | (7.38 | ) |   |   | (8.72 | ) |
|  Net loss per weighted average BAC                                        |   |   | $                              | (6.96     | )      |                          | $      | (11.98 | ) |   | $ | (24.02 | ) |   | $ | (36.08 | ) |

|  *   Reclassified for comparative purposes. The accompanying notes are an integral part of these condensed consolidated financial statements. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                          |   | Independence Tax Credit Plus L.P. IV |        |   |            |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|-------------|--------|-----------------|--------|
|                                                                                                          |   | Total                                |        |   | LimitedPartners |   |   | GeneralPartner |   |   | Noncontrolling Interests |   |
|   Partners’ capital (deficit) – April 1, 2010                                           |   | $                                    | (13,005,061 | )      |            | $      | (13,728,173 | ) |   | $ | (545,320 | ) |   | $ | 1,268,432 |   |
|  Net (loss) income                                                                                       |   |                                 | (1,098,226  | )      |            |   | (1,101,243 | ) |   |   | (11,124 | ) |   |   | 14,141 |   |
|  Distributions                                                                                           |   |                                 | (10,833     | )      |            |   | 0 |   |   |   | 0 |   |   |   | (10,833 | ) |
|  Partners’ capital (deficit) – December 31, 2010                                             |   | $                                    | (14,114,120 | )      |            | $      | (14,829,416 | ) |   | $ | (556,444 | ) |   | $ | 1,271,740 |   |
|   The accompanying notes are an integral part of these condensed consolidated financial statements. |   |

----

|                                                                                                                                                                                                                                                                    |   | Nine Months EndedDecember 31, |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|------------|
|                                                                                                                                                                                                                                                                    |   | 2010                          |       |   | 2009 |   |
|                                                                                                                                                                                                                                                                    |   |                          |       |   |   |   |
| Cash flows from operating activities:                                                                                                                                                                                                                                   |   |                          |       |   |   |   |
| Net loss                                                                                                                                                                                                                                                                |   | $                             | (1,098,226 | ) |   | $ | (1,661,392 | ) |
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities:                                                                                                                                                                               |   |                          |       |   |   |   |   |   |
| Depreciation and amortization                                                                                                                                                                                                                                           |   |                          | 838,590    |   |   |   | 1,289,188 |   |
| (Increase) decrease in cash held in escrow                                                                                                                                                                                                                              |   |                          | (28,957    | ) |   |   | 253,182 |   |
| Increase in other assets                                                                                                                                                                                                                                                |   |                          | (163,080   | ) |   |   | (36,393 | ) |
| Increase in accounts payable                                                                                                                                                                                                                                            |   |                          | 12,703     |   |   |   | 111,286 |   |
| (Decrease) increase in accrued interest payable                                                                                                                                                                                                                         |   |                          | (297,504   | ) |   |   | 507,982 |   |
| Increase in security deposit payable                                                                                                                                                                                                                                    |   |                          | 2,772      |   |   |   | 419 |   |
| Increase in due from general partner and affiliates                                                                                                                                                                                                                     |   |                          | (23,068    | ) |   |   | (21,913 | ) |
| Decrease in due to local general partners and affiliates                                                                                                                                                                                                                |   |                          | (49,596    | ) |   |   | (95,302 | ) |
| Increase in due to general partner and affiliates                                                                                                                                                                                                                       |   |                          | 90,127     |   |   |   | 240,076 |   |
|  Total adjustments                                                                                                                                                                                                                                                 |   |                          | 381,987    |   |   |   | 2,248,525 |   |
|  Net cash (used in) provided by operating activities                                                                                                                                                                                                               |   |                          | (716,239   | ) |   |   | 587,133 |   |
|  Cash flows from investing activities:                                                                                                                                                                                                                             |   |                          |       |   |   |   |   |   |
| Increase in cash held in escrow                                                                                                                                                                                                                                         |   |                          | (39,283    | ) |   |   | (14,827 | ) |
| Acquisition of property and equipment                                                                                                                                                                                                                                   |   |                          | (20,384    | ) |   |   | - |   |
| Net repayments from local general partners and affiliates                                                                                                                                                                                                               |   |                          | 102,495    |   |   |   | 782 |   |
|  Net cash provided by (used in) investing activities                                                                                                                                                                                                               |   |                          | 42,828     |   |   |   | (14,045 | ) |
|  Cash flows from financing activities:                                                                                                                                                                                                                             |   |                          |       |   |   |   |   |   |
| Repayments of mortgage notes                                                                                                                                                                                                                                            |   |                          | (1,861,658 | ) |   |   | (334,672 | ) |
| Proceeds from mortgage notes                                                                                                                                                                                                                                            |   |                          | 3,050,000  |   |   |   | - |   |
| Increase in deferred costs                                                                                                                                                                                                                                              |   |                          | (180,557   | ) |   |   | - |   |
| Distributions to noncontrolling interests                                                                                                                                                                                                                               |   |                          | (10,833    | ) |   |   | (209,175 | ) |
|  Net cash provided by (used in) financing activities                                                                                                                                                                                                               |   |                          | 996,952    |   |   |   | (543,847 | ) |
|  Net increase in cash and cash equivalents                                                                                                                                                                                                                         |   |                          | 323,541    |   |   |   | 29,241 |   |
| Cash and cash equivalents at beginning of period                                                                                                                                                                                                                        |   |                          | 1,176,371  |   |   |   | 1,221,135 |   |
| Cash and cash equivalents at end of period*                                                                                                                                                                                                                             |   | $                             | 1,499,912  |   |   | $ | 1,250,376 |   |
|  *   Cash and cash equivalents at end of period, includes cash and cash equivalents from discontinued operations of $43,981 and $0, respectively. The accompanying notes are an integral part of these condensed consolidated financial statements. |   |

----

----

| A) | Guarantees |
|----|------------|

----

| B) | Related Party Expenses |
|----|------------------------|

|                                                                                                   |   | Three Months EndedDecember 31, |    |   | Nine Months EndedDecember 31, |   |
|--------------------------------------------------------------------------------------------------------|--------|--------------------------------|---------|--------|-------------------------------|--------|
|                                                                                                   |   | 2010                           |    |   | 2009*                         |   |   | 2010 |   |   | 2009* |   |
|  Partnership management fees (a)                                                                  |   | $                              | 72,425  |   |                          | $      | 73,500 |   |   | $ | 221,925 |   |   | $ | 223,000 |   |
| Expense reimbursement (b)                                                                              |   |                           | 12,926  |   |                          |   | 46,837 |   |   |   | 90,476 |   |   |   | 119,391 |   |
| Local administrative fee (c)                                                                           |   |                           | 8,500   |   |                          |   | 8,250 |   |   |   | 25,500 |   |   |   | 24,750 |   |
|  Total general and administrative-General Partners                                                |   |                           | 93,851  |   |                          |   | 128,587 |   |   |   | 337,901 |   |   |   | 367,141 |   |
| Property management fees incurred to affiliates of the subsidiary partnerships’ general partners |   |                           | 53,611  |   |                          |   | 48,736 |   |   |   | 147,880 |   |   |   | 134,295 |   |
|  Total general and administrative-related parties                                                 |   | $                              | 147,462 |   |                          | $      | 177,323 |   |   | $ | 485,781 |   |   | $ | 501,436 |   |
|  *   Reclassified for comparative purposes.                                             |   |

|                                                       |   | Three Months EndedDecember 31 |   |   | Nine Months EndedDecember 31, |   |
|------------------------------------------------------------|--------|-------------------------------|--------|--------|-------------------------------|--------|
|                                                       |   | 2010                          |   |   | 2009*                         |   |   | 2010 |   |   | 2009* |   |
|  Local administrative fee (c)                         |   | $                             | 1,250  |   |                          | $      | 1,250 |   |   | $ | 3,750 |   |   | $ | 3,750 |   |
|  Total general and administrative-related parties     |   | $                             | 1,250  |   |                          | $      | 1,250 |   |   | $ | 3,750 |   |   | $ | 3,750 |   |
|  *   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 are accrued without interest and will be payable out of sales or refinancing proceeds only to the extent of available funds after payments on all Partnership liabilities have been made other than those owed to the General Partner and its affiliates.  Partnership management fees owed to the General Partner amounting to approximately $2,068,000 and $1,847,000 were accrued and unpaid as of December 31, 2010 and March 31, 2010, respectively.  Current year partnership management fees may be paid out of operating reserves or refinancing and sales proceeds.  However, the General Partner cannot demand payment of the deferred fees beyond the Partnership’s ability to pay them. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The Partnership reimburses the General Partner and its affiliates for actual Partnership operating expenses incurred by the General Partner and its affiliates on the Partnership’s behalf. The amount of reimbursement from the Partnership is limited by the provisions of the Partnership Agreement. Another affiliate of the General Partner performs asset monitoring for the Partnership. These services include site visits and evaluations of the subsidiary partnerships’ performance.  Expense reimbursements and asset monitoring fees owed to the General Partner and its affiliates amounting to approximately $32,000 and $86,000 were accrued and unpaid as of December 31, 2010 and March 31, 2010, respectively.  The General Partner does not intend to demand payment of the deferred payables beyond the Partnership’s ability to pay them.  The Partnership anticipates that these will be paid from working capital reserves or future sales proceeds. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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.  Local administrative fees owed to Independence SLP IV L.P. amounting to $204,000 and $279,000 were accrued and unpaid as of December 31, 2010 and March 31, 2010, respectively.  These fees have been deferred in certain cases and the Partnership anticipates that they will be paid from working capital reserves or future sales proceeds. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| C) | Due to/from Local General Partners and Affiliates |
|----|---------------------------------------------------|

|                       |   | December 31,2010 |      |   | March 31,2010 |   |
|----------------------------|--------|------------------|-----------|--------|---------------|--------|
|                       |   |             |      |   |          |   |
| Development fee payable    |   | $                | 1,552,470 |   |          | $      | 1,586,284 |   |
| Construction costs payable |   |             | 50,000    |   |          |   | 50,000 |   |
| Operating advances         |   |             | 207,756   |   |          |   | 71,447 |   |
| Management and other fees  |   |             | 3,226     |   |          |   | 52,822 |   |
|                  |   | $                | 1,813,452 |   |          | $      | 1,760,553 |   |

|                                  |   | December 31,2010 |   |   | March 31,2010 |   |
|---------------------------------------|--------|------------------|--------|--------|---------------|--------|
|                                  |   |             |   |   |          |   |
| Local general partner loan receivable |   | $                | 0      |   |          | $      | 415,917 |   |

|                                  |   | December 31,2010 |    |   | March 31,2010 |   |
|---------------------------------------|--------|------------------|---------|--------|---------------|--------|
|                                  |   |             |    |   |          |   |
| Local general partner loan receivable |   | $                | 438,985 |   |          | $      | 0 |   |

| Level 1: | Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. |
|----------|-------------------------------------------------------------------------------------------------------------|

| Level 2: | Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly.  These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Level 3: | Unobservable inputs that reflect the Partnership’s own assumptions. |
|----------|---------------------------------------------------------------------------|

----

|                                |   | At December 31, 2010 |       |   | At March 31, 2010 |   |
|-------------------------------------|--------|----------------------|------------|--------|-------------------|--------|
|                                |   | CarryingAmount       |       |   | Fair Value        |   |   | CarryingAmount |   |   | Fair Value |   |
|  LIABILITIES:                  |   |                 |       |   |              |   |   |   |   |   |   |   |
| Mortgage notes and accrued interest |   | $                    | 32,068,788 |   |              | $      | 13,320,447 |   |   | $ | 31,177,950 |   |   | $ | 12,763,485 |   |

| Fixed swap – notional amount |              | $      | 3,050,000 |   |
|------------------------------------|-------------------|--------|-----------|--------|
| Fixed rate                         |              |   | 4.65      | %      |
| Variable rate at December 31, 2010 |              |   | 3.75      | %      |
| Termination date                   | September 1, 2015 |   |

----

|                                                                                                                                                                                        |   | December 31,2010 |       | March 31,2010* |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|------------|----------------|--------|
|  Assets                                                                                                                                                                                |   |             |       |           |   |
| Property and equipment – less accumulated depreciation of $5,355,102 and $5,141,719, respectively                                                                                     |   | $                | 3,967,290  |           | $      | 4,180,673 |   |
| Cash and cash equivalents                                                                                                                                                                   |   |             | 43,981     |           |   | 62,339 |   |
| Cash held in escrow                                                                                                                                                                         |   |             | 235,649    |           |   | 207,106 |   |
| Due from Local General Partners and affiliates (Note 3)                                                                                                                                     |   |             | 438,985    |           |   | 411,985 |   |
| Deferred costs, net of accumulated amortization of $147,347 and $146,990, respectively                                                                                                      |   |             | 8,627      |           |   | 8,984 |   |
| Other assets                                                                                                                                                                                |   |             | 123,809    |           |   | 111,140 |   |
| Total assets                                                                                                                                                                                |   | $                | 4,818,341  |           | $      | 4,982,227 |   |
|  Liabilities                                                                                                                                                                           |   |             |       |           |   |   |   |
| Mortgage notes payable                                                                                                                                                                      |   | $                | 6,813,956  |           | $      | 6,829,719 |   |
| Accounts payable                                                                                                                                                                            |   |             | 85,587     |           |   | 98,141 |   |
| Accrued interest payable                                                                                                                                                                    |   |             | 3,631,718  |           |   | 3,427,835 |   |
| Security deposit payable                                                                                                                                                                    |   |             | 52,950     |           |   | 50,389 |   |
| Due to general partners and affiliates                                                                                                                                                      |   |             | 65,726     |           |   | 65,726 |   |
| Total liabilities                                                                                                                                                                           |   | $                | 10,649,937 |           | $      | 10,471,810 |   |
|  *   The balances as of March 31, 2010 above have been presented for comparative purposes and are not classified separately on the balance sheet as discontinued operations. |   |

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|                                                                               |   | Three Months EndedDecember 31, |     |   | Nine Months EndedDecember 31, |   |
|------------------------------------------------------------------------------------|--------|--------------------------------|----------|--------|-------------------------------|--------|
|                                                                               |   | 2010                           |     |   | 2009*                         | *      |   | 2010 |   |   | 2009* |   |
|  Revenues                                                                     |   |                           |     |   |                          |   |   |   |   |   |   |   |   |   |   |
|  Rental income                                                                |   | $                              | 197,686  |   |                          | $      | 191,274 |   |   | $ | 581,894 |   |   | $ | 569,432 |   |
| Other                                                                              |   |                           | 630      |   |                          |   | 181 |   |   |   | 1,301 |   |   |   | 799 |   |
|  Total revenue                                                                |   |                           | 198,316  |   |                          |   | 191,455 |   |   |   | 583,195 |   |   |   | 570,231 |   |
|  Expenses                                                                     |   |                           |     |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative                                                         |   |                           | 100,582  |   |                          |   | 60,160 |   |   |   | 236,549 |   |   |   | 198,190 |   |
| General and administrative-related parties (Note 3)                                |   |                           | 1,250    |   |                          |   | 1,250 |   |   |   | 3,750 |   |   |   | 3,750 |   |
| Repairs and maintenance                                                            |   |                           | 11,141   |   |                          |   | 41,098 |   |   |   | 95,377 |   |   |   | 130,714 |   |
| Operating and other                                                                |   |                           | 28,708   |   |                          |   | 22,161 |   |   |   | 68,466 |   |   |   | 59,699 |   |
| Real estate taxes                                                                  |   |                           | 0        |   |                          |   | 1,000 |   |   |   | 4,620 |   |   |   | 5,620 |   |
| Insurance                                                                          |   |                           | 9,356    |   |                          |   | 9,392 |   |   |   | 36,956 |   |   |   | 37,246 |   |
| Interest                                                                           |   |                           | 91,466   |   |                          |   | 89,927 |   |   |   | 265,750 |   |   |   | 266,950 |   |
| Depreciation and amortization                                                      |   |                           | 70,735   |   |                          |   | 90,867 |   |   |   | 213,740 |   |   |   | 272,601 |   |
|  Total expenses                                                               |   |                           | 313,238  |   |                          |   | 315,855 |   |   |   | 925,208 |   |   |   | 974,770 |   |
|  Loss from discontinued operations                                            |   |                           | (114,922 | )      |                          |   | (124,400 | ) |   |   | (342,013 | ) |   |   | (404,539 | ) |
|  Noncontrolling interest in loss of subsidiaries from discontinued operations |   |                           | 127      |   |                          |   | 135 |   |   |   | 375 |   |   |   | 441 |   |
|  Loss from discontinues operations – Independence Tax Credit Plus IV    |   | $                              | (114,795 | )      |                          | $      | (124,265 | ) |   | $ | (341,638 | ) |   | $ | (404,098 | ) |
|  Loss from discontinued operations – limited partners                   |   | $                              | (113,647 | )      |                          | $      | (123,022 | ) |   | $ | (338,221 | ) |   | $ | (400,057 | ) |
|  Number of BACs outstanding                                                   |   |                           | 45,844   |   |                          |   | 45,844 |   |   |   | 45,844 |   |   |   | 45,844 |   |
|  Loss from discontinued operations per weighted average BAC                   |   | $                              | (2.48    | )      |                          | $      | (2.68 | ) |   | $ | (7.38 | ) |   | $ | (8.72 | ) |

|                                                       |   | Nine Months EndedDecember 31, |    |
|------------------------------------------------------------|--------|-------------------------------|---------|
|                                                       |   | 2010                          |    |   | 2009* |   |
|  Net cash provided by operating activities            |   | $                             | 77,095  |   |   | $ | 28,801 |   |
|  Net cash (used in) provided by investing activities  |   | $                             | (79,690 | ) |   | $ | 3,363 |   |
|  Net cash used in financing activities                |   | $                             | (15,763 | ) |   | $ | (14,570 | ) |
|  *   Reclassified for comparative purposes. |   |

----

| a) | Property Management Fees |
|----|--------------------------|

| b) | Other |
|----|-------|

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----

----

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| Item 1.  | Legal Proceedings. – None                                           |
|----------|---------------------------------------------------------------------------|
|     |                                                                      |
| Item 1A. | Risk Factors. – No changes                                          |
|     |                                                                      |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds. – None |
|     |                                                                      |
| Item 3.  | Defaults upon Senior Securities. – None                             |
|     |                                                                      |
| Item 4.  | (Removed and Reserved)                                                    |
|     |                                                                      |
| Item 5.  | Other Information. – None                                           |
|     |                                                                      |
| Item 6.  | Exhibits.                                                                 |
|     |                                                                      |   |
|     | (4)                                                                       | Form of Amended and Restated Agreement of Limited Partnership of the Partnership (attached to the Prospectus as Exhibit A)* |
|     |                                                                      |   |
|     | (10A)                                                                     | Form of Subscription Agreement (attached to the Prospectus as Exhibit B)* |
|     |                                                                      |   |
|     | (10B)                                                                     | Form of Escrow Agreement between the Partnership and the Escrow Agent** |
|     |                                                                      |   |
|     | (10C)                                                                     | Form of Purchase and Sales Agreement pertaining to the Partnership’s acquisition of Local Partnership Interests** |
|     |                                                                      |   |
|     | (10D)                                                                     | Form of Amended and Restated Agreement of Limited Partnership of Local Partnerships** |
|     |                                                                      |   |
|     | (31.1)+                                                                   | Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a) |
|     |                                                                      |   |
|     | (31.2)+                                                                   | Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a) |
|     |                                                                      |   |
|     | (32.1)+                                                                   | Certification Pursuant to Section 1350 of Title 18 of the United States Code (18 U.S.C. 1350) |
|     |                                                                      |   |
|     | (32.2)+                                                                   | Certification Pursuant to Section 1350 of Title 18 of the United States Code (18 U.S.C. 1350) |
|     |                                                                      |   |
|     | *                                                                         | Incorporated herein by reference to the final Prospectus as filed pursuant to Rule 424 under the Securities Act of 1933. |
|     |                                                                      |   |
|     | **                                                                        | Filed as an exhibit to the Registration Statement on Form S-11 of the Partnership (File No. 33-89968) and incorporated herein by reference thereto. |
|     |                                                                      |   |
|     | +                                                                         | Filed herewith. |

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|   |              |   | By:    | RELATED INDEPENDENCE L.L.C., |
|--------|-------------------|--------|--------|------------------------------|
|   |              |   |   | a General Partner            |
|   |              |   |   |                         |   |   |
|   |              |   |   |                         |   |   |
|   |              |   |   |                         |   |   |
| Date:  | February 11, 2011 |   |   |                         | By: | /s/ Robert A. Pace |   |
|   |              |   |   |                         |   | Robert A. Pace |   |
|   |              |   |   |                         |   | Chief Financial Officer and Principal Accounting Officer |
|   |              |   |   |                         |   |   |   |
|   |              |   |   |                         |   |   |   |
|   |              |   |   |                         |   |   |   |
| Date:  | February 11, 2011 |   |   |                         | By: | /s/ Andrew J. Weil |   |
|   |              |   |   |                         |   | Andrew J. Weil |   |
|   |              |   |   |                         |   | President and Chief Executive Officer |

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