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


                                    FORM 10-Q



(Mark One)

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


For the quarterly period ended December 31, 2005


                                       OR


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


                         COMMISSION FILE NUMBER 0-17015

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)



                    Delaware                                     13-3809869
------------------------------------------------            -------------------
(State or other jurisdiction of incorporation or              (I.R.S. Employer
                 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) 317-5700


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


       Indicate by check mark  whether  the  registrant  is a large  accelerated
filer,  an accelerated  filer,  or a  non-accelerated  filer.  See definition of
"accelerated  filer and large  accelerated  filer" in Rule 12b-2 or the Exchange
Act. (Check one):

Large accelerated filer [  ]  Accelerated filer [  ]   Non-accelerated filer [X]


       Indicate  by  check  mark  whether  the registrant is a shell company (as
defined by Rule 12b-2 of the Exchange Act). Yes  [  ] No [X]

<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
                                                                                  December 31,      March 31,
                                                                                      2005            2005
                                                                                  ------------    ------------
                                                                                   (Unaudited)      (Audited)
<S>                                                                               <C>             <C>
                                                      ASSETS

Property and equipment - at cost, net of accumulated depreciation of
  $18,500,975 and $16,708,237, respectively                                       $ 62,887,985    $ 64,680,722
Cash and cash equivalents                                                            1,496,790       1,663,931
Cash held in escrow                                                                  3,594,221       3,303,235
Deferred costs, net of accumulated amortization of $570,523 and
  $529,530, respectively                                                               613,976         654,969
Other assets                                                                           555,336         511,916
                                                                                  ------------    ------------
Total assets                                                                      $ 69,148,308    $ 70,814,773
                                                                                  ============    ============


                                    LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)

Liabilities:
Mortgage notes payable                                                            $ 35,788,813    $ 36,098,561
Accounts payable and other liabilities                                               9,661,896       9,075,556
Due to local general partners and affiliates                                         1,672,554       1,759,198
Due to general partner and affiliates                                                3,144,715       2,679,588
                                                                                  ------------    ------------
Total liabilities                                                                   50,267,978      49,612,903
                                                                                  ------------    ------------

Minority interest                                                                    1,788,350       1,884,360
                                                                                  ------------    ------------

Partners' capital (deficit):
Limited partners (45,844 Beneficial Assignment Certificates
  ("BACs") issued and outstanding)                                                  17,328,595      19,531,870
General partner                                                                       (236,615)       (214,360)
                                                                                  ------------    ------------
Total partners' capital (deficit)                                                   17,091,980      19,317,510
                                                                                  ------------    ------------
Total liabilities and partners' capital (deficit)                                 $ 69,148,308    $ 70,814,773
                                                                                  ============    ============
</TABLE>

The  accompanying  notes are an integral  part of these  condensed  consolidated
financial statements.

                                       2
<PAGE>
                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                 Condensed Consolidated Statements of Operations
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                           Three Months Ended            Nine Months Ended
                                                              December 31,                  December 31,
                                                       --------------------------    --------------------------
                                                           2005          2004*          2005            2004*
                                                       -----------    -----------    -----------    -----------
<S>                                                    <C>            <C>            <C>            <C>
Revenues
Rental income                                          $ 1,489,098    $ 1,380,471    $ 4,418,285    $ 4,198,261
Other income                                                82,452         66,689        242,265        204,570
                                                       -----------    -----------    -----------    -----------
Total revenues                                           1,571,550      1,447,160      4,660,550      4,402,831
                                                       -----------    -----------    -----------    -----------

Expenses
General and administrative                                 386,454        372,724      1,206,655      1,189,671
General and administrative-related parties                 195,354        172,948        607,402        491,474
Repairs and maintenance                                    272,170        311,876        718,439        806,921
Operating                                                  220,398        188,430        616,954        576,421
Taxes                                                       41,650         41,388        134,284        136,549
Insurance                                                   97,647         93,869        292,959        289,252
Interest                                                   514,541        475,107      1,499,066      1,465,433

Depreciation and amortization                              614,278        652,438      1,833,731      1,850,899
                                                       -----------    -----------    -----------    -----------
Total expenses                                           2,342,492      2,308,780      6,909,490      6,806,620
                                                       -----------    -----------    -----------    -----------

Loss before minority interest                             (770,942)      (861,620)    (2,248,940)    (2,403,789)
Minority interest in loss of subsidiary partnerships         6,070          4,436         23,410         16,425
                                                       -----------    -----------    -----------    -----------
Net loss                                               $  (764,872)   $  (857,184)   $(2,225,530)   $(2,387,364)
                                                       ===========    ===========    ===========    ===========

Net loss - limited partners                            $  (757,223)   $  (848,612)   $(2,203,275)   $(2,363,490)
                                                       ===========    ===========    ===========    ===========

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

Net loss per BAC                                       $    (16.52)   $    (18.51)   $    (48.06)   $    (51.55)
                                                       ===========    ===========    ===========    ===========
</TABLE>

* Reclassified for comparative purposes.

The  accompanying  notes are an integral  part of these  condensed  consolidated
financial statements.

                                       3
<PAGE>
                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
   Condensed Consolidated Statement of Changes in Partners' Capital (Deficit)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                    Limited          General
                                                      Total         Partners         Partner
                                                  ------------    ------------    ------------
<S>                                               <C>             <C>             <C>
Partners' capital (deficit) - April 1, 2005       $ 19,317,510    $ 19,531,870    $   (214,360)

Net loss                                            (2,225,530)     (2,203,275)        (22,255)
                                                  ------------    ------------    ------------

Partners' capital (deficit) - December 31, 2005   $ 17,091,980    $ 17,328,595    $   (236,615)
                                                  ============    ============    ============
</TABLE>

The  accompanying  notes are an integral  part of these  condensed  consolidated
financial statements.

                                       4
<PAGE>
                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                      Nine Months Ended
                                                                                         December 31,
                                                                                  --------------------------
                                                                                     2005            2004
                                                                                  -----------    -----------
<S>                                                                               <C>            <C>
Cash flows from operating activities:
Net loss                                                                          $(2,225,530)   $(2,387,364)
                                                                                  -----------    -----------
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization                                                       1,833,731      1,850,899
Minority interest in loss of subsidiary partnerships                                  (23,410)       (16,425)
Increase in cash held in escrow                                                      (311,576)      (275,433)
Increase in other assets                                                              (43,420)       (84,976)
Increase in accounts payable and other liabilities                                    586,339        676,547
Increase in due to local general partners and affiliates                                6,346          7,601
Decrease in due to local general partners and affiliates                              (55,845)        (8,808)
Increase in due to general partner and affiliates                                     465,127        367,967
                                                                                  -----------    -----------
Total adjustments                                                                   2,457,292      2,517,372
                                                                                  -----------    -----------

Net cash provided by operating activities                                             231,762        130,008
                                                                                  -----------    -----------

Cash flows from investing activities:
Increase in property and equipment                                                          0         (2,858)
Decrease in cash held in escrow                                                        20,590        162,050
Increase in due to local general partners and affiliates                                    0            130
Decrease in due to local general partners and affiliates                              (37,145)       (81,425)
                                                                                  -----------    -----------
Net cash (used in) provided by investing activities                                   (16,555)        77,897
                                                                                  -----------    -----------

Cash flows from financing activities:
Principal reduction of mortgage notes                                                (309,748)      (291,192)
Decrease in capitalization of consolidated subsidiaries attributable to
  minority interest                                                                   (72,600)       (27,176)
                                                                                  -----------    -----------
Net cash used in financing activities                                                (382,348)      (318,368)
                                                                                  -----------    -----------

Net decrease in cash and cash equivalents                                            (167,141)      (110,463)
Cash and cash equivalents at beginning of period                                    1,663,931      1,730,897
                                                                                  -----------    -----------
Cash and cash equivalents at end of period                                        $ 1,496,790    $ 1,620,434
                                                                                  ===========    ===========

Supplemental disclosure of cash flow information:
Cash paid during period for interest                                              $ 1,105,928    $   818,245
                                                                                  ===========    ===========
</TABLE>

The  accompanying  notes are an integral  part of these  condensed  consolidated
financial statements.

                                       5
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                                December 31, 2005
                                   (Unaudited)


Note 1 - General

The  condensed   consolidated  financial  statements  include  the  accounts  of
Independence  Tax Credit Plus L.P. IV (the  "Partnership")  and  fourteen  other
limited  partnerships  ("subsidiary  partnerships",   "subsidiaries"  or  "Local
Partnerships")  owning affordable  apartment complexes that are eligible for the
federal  low-income  housing tax credit,  some of which apartment  complexes may
also be eligible for the historic rehabilitation tax credit. The general partner
of the Partnership is Related  Independence L.L.C., a Delaware limited liability
company (the "General Partner"). Through the rights of the Partnership and/or an
affiliate of the General Partner,  which affiliate has a contractual  obligation
to act on behalf  of the  Partnership  to  remove  the  general  partner  of the
subsidiary  partnerships  and to approve  certain major  operating and financial
decisions,   the  Partnership  has  a  controlling  financial  interest  in  the
subsidiary partnerships.

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

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

Increase   (decrease)  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  approximately  $2,000 and $2,000 and $5,000 and $7,000 for the three
and  nine  months  ended   December  31,  2005  and  2004,   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   consolidated  financial
statements  should  be read  in  conjunction  with  the  consolidated  financial
statements and notes thereto included in the Partnership's Annual Report on Form
10-K for the year ended March 31, 2005.

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
condensed consolidated financial statements contain all adjustments  (consisting
only of normal recurring  adjustments) necessary to present fairly the financial
position of the  Partnership  as of December 31, 2005, its results of operations
for the three and nine  months  ended  December  31,  2005 and 2004 and its cash
flows  for the nine  months  ended  December  31,  2005 and 2004.  However,  the
operating  results  for the  nine  months  ended  December  31,  2005 may not be
indicative of the results for the entire 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  for the three and nine  months  ended
December 31, 2005 and 2004 were as follows:
<TABLE>
<CAPTION>
                                                          Three Months Ended    Nine Months Ended
                                                             December 31,          December 31,
                                                         -------------------   -------------------
                                                           2005       2004       2005       2004
                                                         --------   --------   --------   --------
<S>                                                      <C>        <C>        <C>        <C>
Partnership management fees (a)                          $ 84,280   $ 84,280   $252,840   $252,840
Expense reimbursement (b)                                  55,570     46,615    179,821    111,727
Local administrative fee (c)                               15,000     15,500     45,000     46,500
                                                         --------   --------   --------   --------
Total general and administrative-General Partner          154,850    146,395    477,661    411,067
                                                         --------   --------   --------   --------
Property management fees incurred to affiliates of the
  subsidiary partnerships' general partners (d)            40,504     26,553    129,741     80,407
                                                         --------   --------   --------   --------
Total general and administrative-related parties         $195,354   $172,948   $607,402   $491,474
                                                         ========   ========   ========   ========
</TABLE>


(a) The General  Partner is entitled to receive a  partnership  management  fee,
after payment of all Partnership expenses,  which together with the annual local
administrative  fees  will not  exceed a maximum  of 0.5% per annum of  invested
assets (as defined in the Partnership Agreement),  for administering the affairs
of  the  Partnership.  Subject  to the  foregoing  limitation,  the  partnership
management fee will be determined by the General  Partner in its sole discretion
based  upon its  review of the  Partnership's  investments.  Unpaid  partnership
management  fees for any  year  will be  accrued  without  interest  and will be
payable from working capital  reserves or to the extent of available funds after
the  Partnership  has made  distributions  to the  limited  partners  of sale or
refinancing  proceeds equal to their original capital  contributions  plus a 10%

                                       6
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                                December 31, 2005
                                   (Unaudited)


priority return thereon (to the extent not  theretofore  paid out of cash flow).
Partnership   management  fees  owed  to  the  General   Partner   amounting  to
approximately  $2,220,000 and $1,967,000  were accrued and unpaid as of December
31, 2005 and March 31, 2005, respectively.

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

(c)  Independence  SLP IV L.P.,  a special  limited  partner  of the  subsidiary
partnerships,  is entitled to receive a local administrative fee of $0 to $5,000
per year from each subsidiary partnership.

(d) Property  management  fees  incurred by the Local  Partnerships  amounted to
$90,097 and  $92,230 and  $279,910  and  $271,738  for the three and nine months
ended  December  31, 2005 and 2004,  respectively.  Of these  fees,  $40,504 and
$26,553 and $129,741 and $80,407 were incurred to  affiliates of the  subsidiary
partnerships' general partners.


Note 3 - Commitments and Contingencies

There  have  been  no  material  changes  and/or  additions  to the  disclosures
regarding the subsidiary  partnerships  which were included in the Partnership's
Annual Report on Form 10-K for the fiscal year ended March 31, 2005.


Note 4 - Recent Accounting Pronouncements

In June 2005, the Financial Accounting Standards Board ("FASB") issued Statement
of  Financial  Accounting  Standards  No.  154,  "Accounting  Changes  and Error
Corrections" ("FAS 154"). FAS 154 replaces  Accounting  Principles Board ("APB")
Opinion  No.  20,  "Accounting  Changes"  and FAS No. 3,  "Reporting  Accounting
Changes in Interim Financial  Statements".  APB No. 20 previously  required that
most voluntary changes in accounting principle be recognized by including in the
current  period's  net  income  the  cumulative  effect of  changing  to the new
accounting principle.  In contrast,  FAS 154 requires that a voluntary change in
accounting  principle be applied  retrospectively  to prior  periods'  financial
statements,  unless this would be  impracticable.  In addition,  FAS 154 makes a
distinction between retrospective application of an accounting principle and the
restatement of financial  statements to reflect the correction of an error.  FAS
154 is effective for accounting  changes and correction of errors made in fiscal
years  beginning  after December 15, 2005. The  Partnership  does not expect the
adoption  of FAS 154 to have a material  impact on its  consolidated  results of
operations.

In June 2005, the FASB issued Emerging Issues Task Force No. 04-5,  "Determining
Whether a General  Partner,  or the  General  Partners  as a Group,  Controls  a
Limited  Partnership  or Similar  Entity When the Limited  Partners Have Certain
Rights" ("EITF No. 04-5").  EITF No. 04-5 replaces  counterpart  requirements in
the  Statement of Position  78-9,  which  provides  guidance on  accounting  for
investments in  real-estate  ventures and limited  partnerships.  Under EITF No.
04-5, the general  partner's  control would be overcome if the limited  partners
have  either  "kick-out   rights"-  the  right  to  dissolve  or  liquidate  the
partnership  or  otherwise   remove  the  general  partner  "without  cause"  or
"participating  rights" - the right to  effectively  participate  in significant
decisions  made  in the  ordinary  course  of the  partnership's  business.  The
kick-out  rights and the  participating  rights must be  substantive in order to
overcome the general  partner's  control.  EITF No. 04-5 is now  effective.  The
adoption  of EITF  No.  04-5  has not had a  material  effect  on  Partnership's
consolidated results of operations.

                                       7
<PAGE>

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

Certain  statements  contained herein constitute  forward-looking  statements as
such term is defined in Section 27A of the  Securities  Act of 1933, as amended,
and  Section  21E  of  the   Securities   Exchange  Act  of  1934,  as  amended.
Forward-looking  statements  are not  guarantees  of  performance.  They involve
risks,  uncertainties and assumptions.  Our future results,  financial condition
and business may differ materially from those expressed in these forward-looking
statements.  You can find many of these  statements by looking for words such as
"approximates,"   "believes,"  "expects,"   "anticipates,"  "intends,"  "plans,"
"would," "may" or similar  expressions  in this  quarterly  report on Form 10-Q.
These forward-looking statements are subject to numerous assumptions,  risks and
uncertainties.  Many of the factors that will  determine  these items are beyond
our  ability to control or predict.  Factors  that may cause  actual  results to
differ  materially  from those  contemplated by the  forward-looking  statements
include,  but are not limited to, those set forth in the Company's Annual Report
on Form 10-K for the year  ended  March 31,  2005.  For  these  statements,  the
Company claims the protection of the safe harbor for forward-looking  statements
contained in the Private Securities  Litigation Reform Act of 1995. We expressly
disclaim any responsibility to update forward-looking  statements,  whether as a
result of new information,  future events or otherwise.  Accordingly,  investors
should use caution in relying on forward-looking statements,  which are based on
results and trends at the time they are made,  to anticipate  future  results or
trends.

Liquidity and Capital Resources
-------------------------------

As of December 31, 2005, the Partnership has invested approximately  $37,814,000
(including   approximately   $902,000   classified  as  a  loan  repayable  from
sale/refinancing  proceeds in accordance with the Contribution Agreement,  which
has been  eliminated in  consolidation,  and not including  acquisition  fees of
approximately  $1,771,000)  of net proceeds in fourteen  Local  Partnerships  of
which  approximately  $1,086,000  remains  to be paid to the Local  Partnerships
(including  approximately  $547,000 being held in escrow) as certain benchmarks,
such as  occupancy  level,  must be attained  prior to the release of the funds.
During the nine months ended December 31, 2005,  approximately  $46,000 was paid
to the Local  Partnerships.

Short-Term
----------

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

For the nine months ended  December 31, 2005,  cash and cash  equivalents of the
Partnership  and its  fourteen  consolidated  Local  Partnerships  decreased  by
approximately  $167,000.  This  decrease was due to a decrease in amounts due to
local  general  and  affiliates  relating  to  investing  activities  ($37,000),
repayments of mortgage  notes  ($310,000)  and a decrease in  capitalization  of
consolidated  subsidiaries  attributable  to minority  interest  ($73,000) which
exceeded net cash provided by operating activities  ($232,000) and a decrease in
cash held in escrow relating to investing activities ($21,000).  Included in the
adjustments  to  reconcile  the  net  loss to net  cash  provided  by  operating
activities is depreciation and amortization of approximately $1,834,000.

Total  expenses for the three and nine months ended  December 31, 2005 and 2004,
excluding   depreciation   and   amortization,    interest   and   general   and
administrative-related parties, totaled $1,018,319 and $1,008,287 and $2,969,291
and $2,998,814,  respectively.  Accounts payable and other  liabilities  totaled
$9,661,896 and  $9,075,556,  respectively,  which are comprised of the following
amounts:
<TABLE>
<CAPTION>
                            December 31,   March 31,
                                2005          2005
                            -----------   -----------
<S>                         <C>           <C>
Accounts payable            $   669,038   $   457,500
Accrued interest payable      8,629,319     8,236,181
Security deposits payable       363,539       381,875
                            -----------   -----------

   Total accounts payable   $ 9,661,896   $ 9,075,556
                            ===========   ===========
</TABLE>

Accounts payable are short term  liabilities  which are expected to be paid from
operating cash flows,  working capital balances at the Local Partnership  level,
local general partner  advances and in certain  circumstances  advances from the
Partnership.  Because the provisions of the secondary loans defer the payment of
accrued interest of the respective Local Partnerships,  the Partnership believes
it (and the applicable Local Partnerships) has sufficient  liquidity and ability
to generate cash and to meet existing and known or reasonably likely future cash
requirements over both the short and long term.

As  indicated  in  the  above  table,   accrued   interest   payable   comprised
approximately  89% and 91% of the total accounts  payable and other  liabilities
amount at  December  31,  2005 and March 31,  2005,  respectively.  Such  amount
represents the accrued interest on all mortgage loans, which include primary and
secondary loans.  Certain  secondary loans have provisions such that interest is
accrued but not payable until a future date.  The  Partnership  anticipates  the
payment of accrued  interest on the secondary  loans (which make up the majority
of the accrued  interest  payable amount  indicated in the above table and which
have been  accumulating  since the  Partnership's  investment in the  respective
Local  Partnership)  will be made from future  refinancings or sales proceeds of
the  respective  Local  Partnerships.  In  addition,  each  Local  Partnership's
mortgage  notes are  collateralized  by the land and buildings of the respective
Local Partnership, and are without further recourse to the Partnership.

Security  deposits payable are offset by cash held in security  deposits,  which
are included in "Cash held in escrow" on the financial statements.

At December 31, 2005,  there is  approximately  $212,000 in the working  capital
reserves.  The  General  Partner  believes  that these  reserves,  plus any cash
distributions  received from the operations of the Local  Partnerships,  will be
sufficient to fund the  Partnership's  ongoing  operations  for the  foreseeable
future not including  fees owed to the General  Partner.  During the nine months
ended December 31, 2005, there have been no cash distributions received from the
Local Partnerships.

                                       8
<PAGE>

Long-Term
---------

Partnership   management  fees  owed  to  the  General   Partner   amounting  to
approximately  $2,220,000 and $1,967,000  were accrued and unpaid as of December
31,  2005 and  March 31,  2005,  respectively.  Without  the  General  Partner's
advances and continued  allowance of accrual without payment of certain fees and
expense  reimbursements,  the Partnership  will not be in a position to meet its
obligations.  The General Partner has continued to advance and allow the accrual
without payment of these amounts but is under no obligation to continue to do so
(see Note 2).

Management is not aware of any trends or events,  commitments or  uncertainties,
which  have not  otherwise  been  disclosed  that  will or are  likely to impact
liquidity in a material way.  Management  believes the only impact would be from
laws  that  have not yet been  adopted.  The  portfolio  is  diversified  by the
location of the  properties  around the United States so that if one area of the
country is experiencing  downturns in the economy,  the remaining  properties in
the  portfolio  may  be   experiencing   upswings.   However,   the   geographic
diversification  of the portfolio may not protect against a general  downturn in
the national  economy.  The  Partnership  has fully invested the proceeds of its
offering in fourteen Local Partnerships,  all of which have their tax credits in
place,  and are  expected  to begin  expiring in 2006.  The tax credits  will be
attached to the  property  for a period of ten years,  and will be  transferable
with the property during the remainder of such ten-year period. If trends in the
real estate market  warranted the sale of a property,  the remaining tax credits
would  transfer to the new owner,  thereby  adding  value to the property on the
market.  However,  such  value  declines  each year and is not  included  in the
financial statement carrying amount.

Critical Accounting Policies
----------------------------

In preparing the condensed  consolidated  financial  statements,  management has
made estimates and  assumptions  that affect the reported  amounts of assets and
liabilities at the date of the financial  statements and the reported amounts of
revenues and expenses during the reporting periods.  Actual results could differ
from those  estimates.  Set forth below is a summary of the accounting  policies
that  management  believes  are  critical to the  preparation  of the  condensed
consolidated  financial  statements.  The summary  should be read in conjunction
with the more  complete  discussion  of the  Partnership's  accounting  policies
included in Note 2 to the consolidated  financial  statements which are included
in the  Partnership's  Annual  Report on Form 10-K for the year ended  March 31,
2005.

Property and Equipment
----------------------

Property and  equipment  to be held and used are carried at cost which  includes
the purchase price,  acquisition fees and expenses, and any other costs incurred
in acquiring the  properties.  The cost of property and equipment is depreciated
over their estimated useful lives using accelerated and  straight-line  methods.
Expenditures  for repairs and  maintenance  are charged to expense as  incurred;
major  renewals  and  betterments  are  capitalized.  At the time  property  and
equipment  are  retired  or  otherwise  disposed  of,  the cost and  accumulated
depreciation  are  eliminated  from  the  assets  and  accumulated  depreciation
accounts  and the profit or loss on such  disposition  is reflected in earnings.
The Partnership  complies with Statement of Financial  Accounting  Standards No.
144 "Accounting for the Impairment or Disposal of Long-Lived  Assets". A loss on
impairment of assets is recorded when management  estimates amounts  recoverable
through future operations and sale of the property on an undiscounted  basis are
below depreciated cost. At that time property investments themselves are reduced
to  estimated  fair value  (generally  using  discounted  cash  flows)  when the
property is considered to be impaired and the depreciated cost exceeds estimated
fair value. Through December 31, 2005, the Partnership has not recorded any loss
on impairment of assets or reductions to estimated fair value.

Revenue Recognition
-------------------

Rental  income is earned  under  standard  residential  operating  leases and is
typically  due the first day of each month,  but can vary by property due to the
terms of the tenant leases.  Rental income is recognized when earned and charged
to tenants' accounts receivable if not received by the due date. Rental payments
received in advance of the due date are deferred until earned.  Rental subsidies
are recognized as rental income during the month in which it is earned.

Other  revenues are  recorded  when earned and consist of the  following  items:
Interest  income  earned on cash and cash  equivalent  balances and cash held in
escrow balances,  income from forfeited security deposits, late charges, laundry
and vending income and other rental related items.

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

The results of operations  for the three and nine months ended December 31, 2005
and  2004  continued  to be in the  form of  rental  income  with  corresponding
expenses divided among operations, depreciation and mortgage interest.

Rental income  increased  approximately  8% and 5% for the three and nine months
ended December 31, 2005, respectively,  as compared to the corresponding periods
in 2004,  primarily due to HUD increasing rents  approximately 20 percent at one
Local Partnership and an occupancy  increase at a second Local  Partnership,  as
well as rental rate increases at the other Local Partnerships.

Other income increased  approximately $16,000 and $38,000 for the three and nine
months ended December 31, 2005,  respectively,  as compared to the corresponding
periods in 2004,  primarily  due to an increase  in tenant  charges at one Local
Partnership  and an operating  escrow  withdrawal  which was recognized as other
income at a second Local Partnership.

Total expenses,  excluding general and  administrative-related  parties, repairs
and maintenance and operating,  remained fairly consistent,  with an increase of
approximately  1% for both the three and nine months ended  December 31, 2005 as
compared to the corresponding periods in 2004.

General and  administrative-related  parties  expenses  increased  approximately
$22,000 and  $116,000  for the three and nine months  ended  December  31, 2005,
respectively, as compared to the corresponding periods in 2004, primarily due to
an increase in expense  reimbursements  at the  Partnership  level and two Local
Partnerships   changing  from  third  party  management  companies  in  2004  to
affiliated management companies in 2005.

                                       9
<PAGE>

Repairs and maintenance  decreased  approximately  $40,000 and $88,000 for three
and nine  months  ended  December  31,  2005,  respectively,  as compared to the
corresponding  periods in 2004,  primarily  due to a decrease  in  painting  and
decorating costs at two Local  Partnerships,  higher security costs in the prior
year at a third Local  Partnership and sidewalk repairs done in 2004 at a fourth
Local Partnerships.

Operating expense increased  approximately $32,000 and $41,000 for the three and
nine  months  ended  December  31,  2005,  respectively,   as  compared  to  the
corresponding  periods in 2004, primarily due to an increase in utility expenses
at four Local Partnerships.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The  Partnership  has  mortgage  notes  that are  payable in  aggregate  monthly
installments  including principal and interest at rates varying from 0% to 9.11%
per annum.  The Partnership does not believe there is a material risk associated
with the  various  interest  rates  associated  with the  mortgage  notes as the
majority  of  the  Local  Partnership  mortgage  notes  have  fixed  rates.  The
Partnership currently discloses in Item 8, Note 3 to the consolidated  financial
statements  in the  Partnership's  Annual Report on Form 10-K for the year ended
March 31, 2005, the fair value of the mortgage notes payable.

The Partnership does not have any other market risk sensitive instruments.

Item 4. Controls and Procedures

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES The Chief Executive Officer and
Chief Financial Officer of Related  Independence  L.L.C., the general partner of
the Partnership has evaluated the effectiveness of the Partnership's  disclosure
controls  and  procedures  (as  such  term is  defined  in Rules  13a-15(e)  and
15d-15(e)  under the  Securities  Exchange  Act of 1934,  as amended  ("Exchange
Act")),  as of the end of the  period  covered  by this  report.  Based  on such
evaluation,  such officer has concluded that, as of the end of such period,  the
Partnership's disclosure controls and procedures are effective.

CHANGES IN INTERNAL  CONTROL OVER  FINANCIAL  REPORTING  There have not been any
changes in the  Partnership's  internal control over financial  reporting during
the fiscal quarter to which this report relates that have  materially  affected,
or are  reasonably  likely to  materially  affect,  the  Partnership's  internal
control over financial reporting.

                                       10
<PAGE>

                           PART II. OTHER INFORMATION



Item 1.   Legal Proceedings - None

Item 2.   Unregistered Sales of Equity in Securities and Use of Proceeds -  None

Item 3.   Defaults upon Senior Securities - None

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

Item 5.   Other Information

          Boesky Resignation
          ------------------
          On November 8, 2005, CharterMac announced that  Stuart J. Boesky would
          step down as Chief Executive  Officer  and trustee of CharterMac,  the
          indirect  parent of RCC Manager LLC,  the managing  member of  Related
          Independence L.L.C. (the "General Partner").   Upon his stepping down,
          which was  effective  on November 15, 2005,  he also resigned from his
          position as Vice  President of  the General  Partner.  Mr. Boesky will
          stay on as a consultant to  CharterMac  for  the next year in order to
          ensure a smooth transition.

          Transfer Procedures
          -------------------
          The  Partnership  from time to time receives  requests by unit holders
          and others to transfer BACs and/or limited partnership interests. Such
          requests  may  occur  in   connection   with  tender  offers  for  the
          Partnership's   units.  Such  requests   implicate  the  Partnership's
          policies and  procedures  concerning  transfers  generally  and tender
          offers in particular,  which were adopted by the Partnership  pursuant
          to the terms of its Partnership  Agreement,  to ensure compliance with
          applicable law, avoid adverse tax consequences for the Partnership and
          its investors, and preserve the Partnership's advantageous tax status.

          In  prior  years,  the  Partnership  relied  on  the  5%  safe  harbor
          established by Internal  Revenue Service ("IRS")  regulations to avoid
          being  characterized as a "publicly-traded  partnership" that is taxed
          as a  corporation.  The 5% safe  harbor,  however,  expired  and is no
          longer available as of December 31, 2005. Accordingly, the Partnership
          now relies on a 2% safe harbor  established  by another IRS regulation
          to avoid being  characterized as a "publicly-traded  partnership" that
          is taxed as a corporation.

          A  brief  summary  of  certain  of  the  Partnership's  key  policies,
          practices and requirements with respect to transfers and tender offers
          is as follows:

          o    No transfer (whether for  substitution,  assignment or otherwise)
               is effective or binding on the Partnership unless and until it is
               approved by the General Partner.

          o    No transfer will be approved unless the transferor and transferee
               submit complete and properly  executed forms of the Partnership's
               own transfer documentation. The Partnership does not accept forms
               of transfer  documentation other than its own and does not accept
               signatures  made  by  power  of  attorney  in  lieu  of  original
               signatures by each of the transferors and transferees.

          o    The Partnership will not approve transfers that in the cumulative
               aggregate for any tax year exceed the IRS 2% safe harbor,  unless
               a financially responsible person provides the Partnership and its
               partners with (i) an indemnity (in form and substance in all ways
               acceptable to the general partner) for all liability  (including,
               without limitation, any adverse tax consequences) arising from or
               relating to exceeding the 2% safe harbor and (ii) a legal opinion
               (in form and  substance  in all ways  acceptable  to the  General
               Partner)  that there will be no adverse tax  consequences  to the
               Partnership and its partners from exceeding the 2% safe harbor.

          o    It order to avoid the undesirable situation of one or more tender
               offers  consuming the entire safe harbor  limitation early in the
               tax year and leaving the Partnership's  remaining  investors with
               no  liquidity  opportunity  for the  rest of that tax  year,  the
               Partnership restricts the cumulative aggregate total of transfers
               made  pursuant  to all tender  offers to 1.5% of its  outstanding
               units in each tax year, unless a financially  responsible  person
               conducting  such tender offer  provides the  Partnership  with an
               acceptable  indemnity  and legal  opinion  of the type  described
               above. At the end of each tax year, the General  Partner,  in its
               discretion,  may allow the  cumulative  total number of transfers
               (including  those by tender  offer)  to reach the 2% safe  harbor
               limit.

          o    The Partnership  requires that all tender offers for its units be
               conducted  in  accordance  with  all  applicable  law  including,
               without limitation, the federal securities laws.

          The  foregoing  is solely a  summary  of the  Partnership's  policies,
          requirements  and  practices  with  respect  to  transfers  and tender
          offers.   More   complete   information,   including  a  copy  of  the
          Partnership's transfer documentation package, may be obtained from the
          Partnership.

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)*

                                       11
<PAGE>

          (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).

          (32.1) Certification Pursuant to Rule 13a-14(b) or Rule 15d-14(b) and
                 Section 1350 of Title 18 of the United  States Code (18 U.S.C.
                 1350).

          *      Incorporated  herein  by reference  to the final  Prospectus as
                 filed  pursuant to Rule 424 under the  Securities Act of 1933.
          **     Filed as an exhibit to the  Registration Statement on Form S-11
                 of the Partnership (File  No. 33-89968) and incorporated herein
                 by reference thereto.


                                       12
<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: January 31, 2006
      ----------------

                                             By:  /s/ Alan P. Hirmes
                                                  ------------------
                                                  Alan P. Hirmes,
                                                  President and Member
                                                  (Chief Executive Officer and
                                                   Chief Financial Officer)


Date: January 31, 2006
      ----------------

                                             By:  /s/ Glenn F. Hopps
                                                  ------------------
                                                  Glenn F. Hopps,
                                                  Treasurer
                                                  (Principal Accounting Officer)




<PAGE>

                                                                    Exhibit 31.1


                         CERTIFICATION PURSUANT TO RULE
                           13a-14(a) OR RULE 15d-14(a)


I, Alan P.  Hirmes,  Chief  Executive  Officer  and Chief  Financial  Officer of
Related  Independence  L.L.C.  (the  "General  Partner"),  which is the  General
Partner of  Independence  Tax Credit Plus L.P. IV (the  "Partnership"),  certify
that:

     1)  I have  reviewed  this  quarterly  report on Form  10-Q for the  period
         ending December 31, 2005 of the Partnership;

     2)  Based  on my  knowledge,  this  report  does  not  contain  any  untrue
         statement of a material fact or omit to state a material fact necessary
         to make the statements made, in light of the circumstances  under which
         such  statements  were made, not misleading  with respect to the period
         covered by this report;

     3)  Based on my knowledge,  the financial  statements,  and other financial
         information  included in this  report,  fairly  present in all material
         respects the financial condition,  results of operations and cash flows
         of the  Partnership  as of,  and for,  the  periods  presented  in this
         report;

     4)  I am responsible for establishing and maintaining  disclosure  controls
         and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-(e))
         and internal  control over financial  reporting (as defined in Exchange
         Act Rules 13a-15(f) and 15d-15(f)) for the Partnership and have:

         a) designed such  disclosure  controls and  procedures,  or caused such
         disclosure   controls  and   procedures,   to  be  designed   under  my
         supervision,  to  ensure  that  material  information  relating  to the
         Partnership including its consolidated  subsidiaries,  is made known to
         me by others within those entities,  particularly  during the period in
         which this report is being prepared;

         b) designed such internal control over financial  reporting,  or caused
         such internal control over financial  reporting to be designed under my
         supervision,  to provide reasonable assurance regarding the reliability
         of financial reporting and the preparation of financial  statements for
         external  purposes in accordance  with  generally  accepted  accounting
         principles;

         c) evaluated the effectiveness of the Partnership's disclosure controls
         and procedures  and presented in this report my  conclusions  about the
         effectiveness of the disclosure controls and procedures,  as of the end
         of the period covered by this report based on such evaluation; and

         d)  disclosed in this report any change in the  Partnership's  internal
         control over financial reporting that occurred during the Partnership's
         most  recent  fiscal  quarter  that  has  materially  affected,  or  is
         reasonably  likely to materially  affect,  the  Partnership's  internal
         control over financial reporting; and

     5)  I have  disclosed,  based  on my most  recent  evaluation  of  internal
         control over financial reporting,  to the Partnership's auditors and to
         the board of directors of the General Partner:

         a) all significant  deficiencies and material  weaknesses in the design
         or operation of internal  control over  financial  reporting  which are
         reasonably  likely to  adversely  affect the  Partnership's  ability to
         record, process, summarize and report financial information; and

         b) any fraud,  whether or not  material,  that  involves  management or
         other  employees  who  have a  significant  role  in the  Partnership's
         internal control over financial reporting.



         Date: January 31, 2006
               ----------------
                                              By:  /s/ Alan P. Hirmes
                                                   ------------------
                                                   Alan P. Hirmes,
                                                   Chief Executive Officer and
                                                   Chief Financial Officer


<PAGE>


                                                                    Exhibit 32.1


                             CERTIFICATION PURSUANT
                       TO RULE 13a-14(b) OR RULE 15d-14(b)
                          AND SECTION 1350 OF TITLE 18
                   OF THE UNITED STATES CODE (18 U.S.C. 1350)


In connection with the Quarterly  Report of Independence Tax Credit Plus L.P. IV
(the "Partnership") on Form 10-Q for the period ended December 31, 2005 as filed
with the  Securities  and  Exchange  Commission  ("SEC") on the date hereof (the
"Report"),  I, Alan P.  Hirmes,  Chief  Executive  Officer  and Chief  Financial
Officer of  Related  Independence  L.L.C.  which is the  general  partner of the
Partnership, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, that:


       (1) The Report fully complies with the  requirements  of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and


       (2) The  information  contained  in the Report  fairly  presents,  in all
material  respects,  the  financial  condition  and result of  operations of the
Partnership.


A signed  original of this  written  statement  required by Section 906 has been
provided  to the  Partnership  and  will  be  retained  by the  Partnership  and
furnished to the SEC or its staff upon request.



By:  /s/ Alan P. Hirmes
     ------------------
     Alan P. Hirmes,
     Chief Executive Officer and
     Chief Financial Officer
     January 31, 2006