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, 2007


                                       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 of 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 in 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,
                                                              2007            2007*
                                                          ------------    ------------
                                                           (Unaudited)      (Audited)
<S>                                                       <C>             <C>
ASSETS

Operating assets
  Property and equipment - (at cost, net of accumulated
    depreciation of $20,636,874 and $21,471,763,
    respectively)                                         $ 49,502,985    $ 59,929,615
  Cash and cash equivalents                                  2,225,730       1,375,669
  Cash held in escrow                                        3,021,380       3,400,368
  Deferred costs (net of accumulated amortization of
    $726,362 and $710,378, respectively)                       414,231         486,343
  Due from local general partners and affiliates               256,602         231,589
  Other assets                                                 773,872         596,867
                                                          ------------    ------------

Total assets                                              $ 56,194,800    $ 66,020,451
                                                          ============    ============

LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)

Operating liabilities
  Mortgage notes payable                                  $ 27,310,265    $ 35,051,752
  Accounts payable                                             769,933         451,390
  Accrued interest payable                                   6,054,712       9,493,633
  Security deposit payable                                     305,839         415,159
  Due to local general partners and affiliates               1,736,483       1,775,063
  Due to general partners and affiliates                     2,670,910       3,727,579
                                                          ------------    ------------

Total liabilities                                           38,848,142      50,914,576
                                                          ------------    ------------

Minority interests                                           1,706,737       1,837,730
                                                          ------------    ------------

Commitments and contingencies (Note 5)

Partners' capital (deficit):
  Limited partners - 45,844 Beneficial Assignment
    Certificates ("BACs") issued and outstanding            15,891,057      13,542,999
  General partners                                            (251,136)       (274,854)
                                                          ------------    ------------

Total partners' capital (deficit)                           15,639,921      13,268,145
                                                          ------------    ------------

Total liabilities and partners' capital (deficit)         $ 56,194,800    $ 66,020,451
                                                          ============    ============
</TABLE>

* Reclassified for comparative purposes.

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,
                                                      --------------------------    --------------------------
                                                          2007           2006*          2007           2006*
                                                      -----------    -----------    -----------    -----------
<S>                                                   <C>            <C>            <C>            <C>
Operations:

Revenues
Rental income                                         $ 1,246,429    $ 1,207,237    $ 3,719,275    $ 3,607,789
Other                                                     116,989         61,528        265,057        225,818
                                                      -----------    -----------    -----------    -----------
Total revenues                                          1,363,418      1,268,765      3,984,332      3,833,607
                                                      -----------    -----------    -----------    -----------

Expenses
General and administrative                                259,981        287,464        995,962        915,332
General and administrative-related parties (Note 2)       228,869        219,448        589,943        572,188
Repairs and maintenance                                   248,688        178,521        731,548        624,998
Operating and other                                       236,497        210,578        651,162        652,460
Real estate taxes                                          34,981         28,529        102,985        105,481
Insurance                                                  88,648         83,870        251,518        246,923
Interest                                                  398,735        375,029      1,128,622      1,129,163
Depreciation and amortization                             564,215        553,536      1,664,369      1,657,234
                                                      -----------    -----------    -----------    -----------
Total expenses                                          2,060,614      1,936,975      6,116,109      5,903,779
                                                      -----------    -----------    -----------    -----------

Loss before minority interest and discontinued
  operations                                             (697,196)      (668,210)    (2,131,777)    (2,070,172)

Minority interest in (loss) income of
  subsidiaries from operations                           (357,136)           206       (362,767)         9,955
                                                      -----------    -----------    -----------    -----------

Loss from continuing operations                        (1,054,332)      (668,004)    (2,494,544)    (2,060,217)

Discontinued operations:
Income (loss) from discontinued operations
  (including loss on sale of property and
  minority interest) (Note 4)                           5,020,829        (12,338)     4,866,320        (94,638)
                                                      -----------    -----------    -----------    -----------
Net income (loss)                                     $ 3,966,497    $  (680,342)   $ 2,371,776    $(2,154,855)
                                                      ===========    ===========    ===========    ===========

Loss from continuing operations - limited
  partners                                            $(1,043,789)   $  (661,324)   $(2,469,599)   $(2,039,615)
Income (loss) from discontinued operations
  (including loss on sale of property and
  minority interest) - limited partners                 4,970,621        (12,215)     4,817,657        (93,691)
                                                      -----------    -----------    -----------    -----------
Net income (loss) - limited partners                  $ 3,926,832    $  (673,539)   $ 2,348,058    $(2,133,306)
                                                      ===========    ===========    ===========    ===========

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

Loss from continuing operations per weighted
  average BAC                                         $    (22.76)   $    (14.42)   $    (53.87)   $    (44.49)
Income (loss) from discontinued operations per
  weighted average BAC                                     108.42          (0.27)        105.09          (2.04)
                                                      -----------    -----------    -----------    -----------

Net income (loss) per weighted average BAC            $     85.66    $    (14.69)   $     51.22    $    (46.53)
                                                      ===========    ===========    ===========    ===========
</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, 2007       $13,268,145   $13,542,999   $  (274,854)

Net income                                          2,371,776     2,348,058        23,718
                                                  -----------   -----------   -----------

Partners' capital (deficit) - December 31, 2007   $15,639,921   $15,891,057   $  (251,136)
                                                  ===========   ===========   ===========
</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,
                                                                              --------------------------
                                                                                  2007          2006*
                                                                              -----------    -----------
<S>                                                                           <C>            <C>
Cash flows from operating activities:
Net income (loss)                                                             $ 2,371,776    $(2,154,855)
Adjustments to reconcile net income (loss) to net cash (used in)
  provided by operating activities:
Depreciation and amortization                                                   1,774,911      1,823,755
Loss on sale of property                                                          121,324              0
Minority interest in loss of subsidiary partnerships                           (4,911,970)        (9,955)
Capital contribution - general                                                          0         84,280
Increase in cash held in escrow                                                      (974)      (318,216)
(Increase) decrease in other assets                                              (161,578)        25,363
Increase in accounts payable                                                      131,244         88,461
Increase in accrued interest payable                                              383,945        534,865
Decrease in security deposit payable                                             (109,275)       (19,621)
Decrease in due to local general partners and affiliates                          (23,923)        (3,876)
(Decrease) increase in due to general partner and affiliates                   (1,056,669)       266,220
                                                                              -----------    -----------

Total adjustments                                                              (3,852,965)     2,471,276
                                                                              -----------    -----------

Net cash (used in) provided by operating activities                            (1,481,189)       316,421
                                                                              -----------    -----------

Cash flows from investing activities:
Decrease (increase) of cash held in escrow                                        311,833        (32,116)
Proceeds from sale of property                                                  2,513,602              0
Net payments (to) from local general partners and affiliates                      (39,670)        29,371
                                                                              -----------    -----------

Net cash provided by (used in) investing activities                             2,785,765         (2,745)
                                                                              -----------    -----------

Cash flows from financing activities:
Repayments of mortgage notes                                                     (371,812)      (403,208)
Increase in due to selling partners                                                67,404              0
                                                                              -----------    -----------
Decrease in capitalization of consolidated subsidiaries attributable to
  minority interest                                                              (150,107)             0
                                                                              -----------    -----------

Net cash used in financing activities                                            (454,515)      (403,208)
                                                                              -----------    -----------

Net increase (decrease) in cash and cash equivalents                              850,061        (89,532)
Cash and cash equivalents at beginning of period                              $ 1,375,669      1,486,123
                                                                              -----------    -----------
Cash and cash equivalents at end of period                                      2,225,730    $ 1,396,591
                                                                              ===========    ===========

Supplemental disclosure of cash flow information:
Cash paid during period for interest                                          $ 4,908,881    $   924,310
                                                                              ===========    ===========

Summarized below are the components of the loss on sale of property:

  Proceeds from sale of investment - net                                      $(2,513,602)   $         0
  Decrease in property and equipment, net of accumulated depreciation           8,693,866              0
  Decrease in cash held in escrow                                                  68,129              0
  Increase in other assets                                                        (15,427)             0
  Decrease in mortgage notes payable                                           (7,369,675)             0
  Increase in accounts payable and other liabilities                              187,299              0
  Decrease in accrued interest payable                                         (3,822,866)             0
  Decrease in security deposit payable                                                (45)             0
  Decrease in due to selling partners                                             (67,404)             0
  Decrease in deferred costs                                                       29,965              0
  Increase  in  capitalization of consolidated subsidiaries attributable to
    minority interest                                                           4,931,084              0
</TABLE>
* Reclassified for comparative purposes.

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, 2007
                                   (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  ("Properties") that are
eligible for the low-income housing tax credits. Some of the Properties may also
be eligible for the  historic  rehabilitation  tax  credits.  As of December 31,
2007,  the  property  and  the  related  assets  and  liabilities  of one  Local
Partnership  were sold (see Note 3). 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 third fiscal quarter ends
December 31. The third quarter for all subsidiaries  ends September 30. Accounts
of the  subsidiaries  have been  adjusted  for  intercompany  transactions  from
October 1 through  December  31. The  Partnership's  fiscal  quarter  ends three
months  after  the  subsidiaries  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 arises from cash  contributions  from and cash
distributions to the minority interest partners.

Losses  attributable to minority  interests that exceed the minority  interests'
investment  in a subsidiary  have been charged to the  Partnership.  Such losses
aggregated approximately $0, $2,000, $0 and $7,000 for the three and nine months
ended December 31, 2007 and 2006, 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 accounting  principles generally accepted
in the United States of America  ("GAAP") 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, 2007.

The books and records of the  Partnership are maintained on the accrual basis of
accounting in accordance with GAAP. 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 consolidated financial position of
the  Partnership  as of December 31, 2007, the results of its operations for the
three and nine months  ended  December  31, 2007 and 2006 and its cash flows for
the nine months ended December 31, 2007 and 2006. However, the operating results
for the nine months ended December 31, 2007 may not be indicative of the results
for the entire year.

Recent Accounting Pronouncements
--------------------------------

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements,  which
established a framework  for measuring the fair value of assets and  liabilities
as required by numerous other accounting pronouncements,  and expands disclosure
requirements  of the  fair  values  of  certain  assets  and  liabilities.  This
statement is effective  for the  Partnership's  year ending March 31, 2008.  The
provisions of this statement do not have a material  impact on the  consolidated
financial statements.

In  February  2007 the FASB  issued  SFAS No.  159,  The Fair  Value  Option for
Financial Assets and Financial  Liabilities.  This statement was issued with the
intent to provide an  alternative  measurement  treatment for certain  financial
assets and liabilities.  The alternative  measurement would permit fair value to
be used for both initial and subsequent measurement,  with changes in fair value
recognized in earnings as those changes occur. This "Fair Value Option" would be
available on a contract by contract  basis.  This statement is effective for the
Partnership's  year ending March 31, 2008.  The  provisions of this statement do
not have a material impact on the consolidated financial statements.

In December  2007,  the FASB issued SFAS No. 160,  Noncontrolling  Interests  in
Consolidated Financial Statements.  This statement was issued with the intent to
improve  the  relevance,   comparability,  and  transparency  of  the  financial
information  that a  reporting  entity  provides in its  consolidated  financial
statements for those entities that have outstanding  noncontrolling  interest in
one or more  subsidiaries.  The effective  date for this provision is for fiscal
year ends  beginning  after  December 15,  2008.  The  Partnership  is currently
evaluating the impact of the  provisions of this  statement on the  consolidated
financial statements.

                                       6
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                                December 31, 2007
                                   (Unaudited)



Note 2 - Related Party Transactions

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

The costs  incurred to related  parties from  operations  for the three and nine
months ended December 31, 2007 and 2006 were as follows:
<TABLE>
<CAPTION>
                                                      Three Months Ended     Nine Months Ended
                                                          December 31,          December 31,
                                                      -------------------   -------------------
                                                        2007       2006       2007       2006
                                                      --------   --------   --------   --------
<S>                                                   <C>        <C>        <C>        <C>
Partnership management fees (a)                       $ 69,426   $ 84,280   $237,986   $252,840
Expense reimbursement (b)                               61,550     29,494    127,476     83,072
Local administrative fee (c)                            15,750     19,000     47,250     57,000
                                                      --------   --------   --------   --------

Total general and administrative-General Partners      146,726    132,774    412,712    392,912
Property management fees incurred to affiliates of
  the subsidiary partnerships' general partners (d)     82,143     86,674    177,231    179,276
                                                      --------   --------   --------   --------
Total general and administrative-related parties      $228,869   $219,448   $589,943   $572,188
                                                      ========   ========   ========   ========
</TABLE>


There were no costs incurred to related parties from discontinued operations for
the three and nine months ended December 31, 2007 and 2006.

(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.  Partnership  management fees owed to the
General  Partner  amounting to  approximately  $2,117,000  and  $2,641,000  were
accrued and unpaid as of December 31, 2007 and March 31, 2007, 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
$90,410 and  $136,813  and  $317,523  and $322,594 for the three and nine months
ended  December  31, 2007 and 2006,  respectively.  Of these  fees,  $82,143 and
$86,674 and $177,231 and $179,276, were incurred to affiliates of the subsidiary
partnerships'  general partners ("Local General  Partners") which includes $0 of
fees relating to discontinued operations.


Note 3 - Sale of Property

The Partnership is currently in the process of disposing of its investments.  As
of December 31, 2007, the property and the related assets and liabilities of one
Local  Partnership  were  sold.  There  can  be  no  assurance  as to  when  the
Partnership will dispose of its remaining  investments or the amount of proceeds
which may be received. However, based on the historical operating results of the
Local Partnerships and the current economic conditions, including changes in tax
laws,  it is  unlikely  that  the  proceeds  from  such  sales  received  by the
Partnership  will be sufficient to return to the limited partners their original
investments.  All  gains  and  losses  on sales  are  included  in  discontinued
operations.

On September 5, 2007,  the property and the related  assets and  liabilities  of
Westminster  Park  Plaza,  a  California  L.P.  ("Westminster")  were sold to an
affiliate of the Local  General  Partner for a sales price of  $14,070,228.  The
Partnership  received  $2,513,602  as a  distribution  from this sale  after the
repayment of mortgages,  other  liabilities  and closing costs of  approximately
$11,557,000.  Because  Westminster Park Plaza was sold to a related party of the
Local  Partnership,  the sale resulted in a non-cash  contribution  to the Local
Partnership  from the Local General Partner of  approximately  $4,931,000.  Such
contribution flows through minority interest as a result of the write-off of the
partners' basis in the property of approximately $4,931,000.

                                       7
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                                December 31, 2007
                                   (Unaudited)


Note 4 - Discontinued Operations

The  following  table   summarizes  the  results  of  operations  of  the  Local
Partnership  that classified as discontinued  operations.  For is three and nine
months  ended  December  31, 2 the  Westminster,  which was sold during the 007,
months ended December 31, 2007, was classifienine discontinued operations on the
conded as consolidated financial statements. For the tnsed and nine months ended
December 31, 2hree Westminster,  in order to present compar006,  results for the
three and nine months eable December 31, 2007,  was  classified as  discontinded
operations on the condensed consolidnued statement of operations.

Consolidated Statements of Discontinued Operations:
<TABLE>
<CAPTION>
                                                Three Months Ended              Nine Months Ended
                                                    December 31,                  December 31,
                                             --------------------------    --------------------------
                                                 2007           2006*          2007           2006*
                                             -----------    -----------    -----------    -----------
<S>                                          <C>            <C>            <C>            <C>
Revenues

Rental income                                $   193,382    $   287,322    $   776,455    $   848,402
Other                                             12,560         12,317         34,401         34,582
Loss on sale of property (Note 3)               (121,324)             0       (121,324)             0
                                             -----------    -----------    -----------    -----------
Total revenue                                     84,618        299,639        689,532        882,984
                                             -----------    -----------    -----------    -----------

Expenses
General and administrative                       111,335         64,925        384,189        234,184
Repairs and maintenance                           36,884         40,211        111,052        139,651
Operating                                         25,539         19,849         57,063         46,550
Taxes                                             33,232          7,027         61,151         20,549
Insurance                                          5,824         13,669         32,614         40,155
Interest                                         124,812        109,900        341,338        330,012
Depreciation and amortization                        900         56,396        110,542        166,521
                                             -----------    -----------    -----------    -----------

Total expenses                                   338,526        311,977      1,097,949        977,622
                                             -----------    -----------    -----------    -----------

Loss before minority interest                   (253,908)       (12,338)      (408,417)       (94,638)

Minority interest in loss of subsidiaries
  from discontinued operations                 5,274,737              0      5,274,737              0
                                             -----------    -----------    -----------    -----------
Net income (loss) from discontinued
  operations (including minority interest)   $ 5,020,829    $   (12,338)   $ 4,866,320    $   (94,638)
                                             ===========    ===========    ===========    ===========

Net income (loss) from
  discontinued  operations  (including
  minority interest)- limited partners       $ 4,970,621    $   (12,215)   $ 4,817,657    $   (93,691)
                                             ===========    ===========    ===========    ===========

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

Net income (loss) from discontinued
  operations (including minority interest)
  per BAC                                    $    108.42    $     (0.27)   $    105.09    $     (2.04)
                                             ===========    ===========    ===========    ===========
<CAPTION>

Cash Flows from Discontinued Operations:

                                                                               Nine Months Ended
                                                                                  December 31,
                                                                           --------------------------
                                                                               2007           2006*
                                                                           -----------    -----------
<S>                                                                        <C>            <C>
Net cash (used in) provided by operating activities                        $  (319,820)   $   100,659
                                                                           -----------    -----------
Net cash provided by (used in) investing activities                        $ 2,878,173    $   (73,615)
                                                                           -----------    -----------
Net cash used in financing activities                                      $(5,029,140)   $   (71,410)
                                                                           -----------    -----------
</TABLE>
* Reclassified for comparative purposes.

                                       8
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                                December 31, 2007
                                   (Unaudited)



Note 5 - 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, 2007.

Other
-----

The  Partnership is subject to risks  incident to potential  losses arising from
the management and ownership of improved real estate.  The  Partnership can also
be affected by poor economic conditions  generally,  however no more than 23% of
the properties are located in any single state. There are also substantial risks
associated with owning properties receiving government  assistance,  for example
the  possibility  that  Congress  may not  appropriate  funds to enable the U.S.
Department of Housing and Urban  Development  ("HUD") to make rental  assistance
payments.  HUD also  restricts  annual cash  distributions  to partners based on
operating  results and a percentage of the owners'  equity  contribution.  As of
December 31, 2007,  there were three Local  Partnerships  subsidized by HUD. The
Partnership cannot sell or substantially liquidate its investments in subsidiary
partnerships  during the period that the  subsidy  agreements  are in  existence
without  HUD's  approval.  Furthermore  there  may  not  be  market  demand  for
apartments at full market rents when the rental assistance contract expires.

Except as  described  above,  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  not  be  affected.  However,  the
geographic  diversification  of the portfolio may not protect  against a general
downturn in the national economy.

                                       9
<PAGE>

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

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

The  Partnership  originally  invested   approximately   $37,555,000  (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,  as of
December  31,  2007,  approximately  $1,024,000  remains to be paid to the Local
Partnerships (including  approximately $485,000 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, 2007, approximately $15,000
was paid to the Local  Partnerships.  As of December 31, 2007,  the property and
the related assets and liabilities of one Local  Partnership were sold (see Item
1, Note 3).

Off-Balance  Sheet   Arrangements
---------------------------------
The Partnership has no off-balance sheet arrangements.

Tabular Disclosure of Contractual  Obligations
----------------------------------------------
The Partnership  disclosed in Item 7 of the Partnership's  Annual Report on Form
10-K for the year ended March 31, 2007,  the  Partnership's  commitments to make
future  payments under its debt  agreements and other  contractual  obligations.
There are no material  changes to such  disclosure or amounts as of December 31,
2007.

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

The  Partnership's  primary  sources  of  funds  include:  (i)  working  capital
reserves;  (ii)  interest  earned on the working  capital  reserves;  (iii) cash
distributions from operations of the Local Partnerships; and (iv) sales proceeds
and  distributions.  Such funds,  although  minimal  (other than possible  sales
proceeds and sales distributions),  are available to meet the obligations of the
Partnership. The Partnership does not anticipate providing cash distributions to
BACs holders in circumstances  other than refinancing or sales.  During the nine
months ended December 31, 2007 and 2006,  distributions  from  operations of the
Local  Partnerships  amounted to  approximately  $0 and  $16,000,  respectively.
Additionally,  during the nine months  ended  December  31,  2007 and 2006,  the
Partnership  received   approximately   $2,514,000  and  $0,  respectively,   of
distributions from the sale of investments.

For the nine months ended  December 31, 2007,  cash and cash  equivalents of the
Partnership and its  consolidated  Local  Partnerships  increased  approximately
$850,000 due to proceeds from sale of investments of  approximately  $2,514,000,
decrease of cash held in escrow of approximately $312,000 and an increase in due
to selling  partners of approximately  $67,000,  which exceeded net cash used in
operating activities of approximately  $1,481,000,  repayments of mortgage notes
of  approximately  $372,000,  net  repayments  of amounts  due to Local  General
Partners  and  affiliates  relating to  investing  activities  of  approximately
$40,000  and  a  decrease  in   capitalization   of  consolidated   subsidiaries
attributable to minority  interest of  approximately  $150,000.  Included in the
adjustments to reconcile the net income to net cash used in operating activities
is depreciation and amortization of approximately $1,775,000 and loss on sale of
investments of approximately $121,000.

Total  expenses for the three and nine months ended  December 31, 2007 and 2006,
excluding   depreciation   and   amortization,    interest   and   general   and
administrative-related parties, totaled $868,795 and $788,962 and $2,733,175 and
$2,545,194, respectively.

Accounts payable totaled $769,933 and $451,390 as of December 31, 2007 and March
31, 2007,  respectively.  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.  In  addition,  there  were no
accounts payable from discontinued  operations as of December 31, 2007 and March
31, 2007. 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.

Accrued  interest  payable  as of  December  31,  2007 and  March  31,  2007 was
$6,054,712 and $9,493,633, respectively. Accrued interest payable 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.  In addition,  there were no accrued  interest
payable  from  discontinued  operations,  as of December  31, 2007 and March 31,
2007.  The  Partnership  anticipates  the  payment  of accrued  interest  on the
secondary  loans  (which make up the  majority of the accrued  interest  payable
amount 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.   Furthermore,   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, 2007, there is  approximately  $1,129,000 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.

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

Partnership   management  fees  owed  to  the  General   Partner   amounting  to
approximately  $2,117,000 and $2,641,000  were accrued and unpaid as of December
31, 2007 and March 31, 2007,  respectively.  Unpaid partnership  management fees
for any year will be accrued  without  interest and will be payable from working
capital  reserves or to the extent of available  funds after the Partnership has
made distributions to the limited partners of sale or refinancing proceeds equal
to their original capital  contributions  plus a 10% priority return thereon (to
the extent not theretofore paid out of cash flow).

                                       10
<PAGE>

The Local  Partnerships  are impacted by inflation  in several  ways.  Inflation
allows for  increases in rental rates  generally to reflect the impact of higher
operating and  replacement  costs.  Furthermore,  inflation  generally  does not
impact the fixed long-term financing under which real property  investments were
purchased. Inflation also affects the Local Partnerships adversely by increasing
operating costs, such as fuel,  utilities,  and labor. Since revenues from sales
of assets are driven by market conditions, inflation has little impact on sales.

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.  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. The Credit
Periods  are  scheduled  to expire,  and have  expired,  at  various  times from
December  31,  2005  through  December  31,  2010  with  respect  to  the  Local
Partnerships  depending  upon when the Credit Period  commenced.  However,  each
Local Partnership must continue to comply with the Tax Credit requirements until
the end of the Compliance Period in order to avoid recapture of the Tax Credits.
The Compliance  Periods will continue  through December 31, 2014 with respect to
the Properties depending upon when the Compliance Period commenced.

Critical Accounting Policies and Estimates
------------------------------------------

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 Item 8, 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, 2007.

Property and Equipment/Valuation of Long-Lived Assets
-----------------------------------------------------

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.

In  accordance  with SFAS No. 144, the results of  discontinued  operations  are
reported as a separate  component of income  before  extraordinary  items on the
condensed consolidated statements of operations. Discontinued operations include
the results of operations and any gain or loss recognized for Local Partnerships
that have been  disposed of or are held for sale. A gain or loss  recognized  on
the disposal is disclosed in the notes to the condensed  consolidated  financial
statements.  Adjustments to amounts  previously  reported in operations that are
directly related to the disposal of a Local  Partnership are reclassified in the
current period as discontinued operations for comparability purposes. Assets and
liabilities  of a Local  Partnership  that are  classified  as held for sale are
presented separately in the asset and liability sections,  respectively,  of the
condensed consolidated balance sheets.

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).  Through  December 31, 2007,  the  Partnership  has not
recorded any loss on impairment of assets.

At the time management  commits to a plan to dispose of an asset,  such asset is
adjusted to the lower of carrying amount or fair value less costs to sell. These
assets  are  classified  as  property  and  equipment-held  for sale and are not
depreciated.

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, 2007
and  2006  continued  to be in the  form of  rental  income  with  corresponding
expenses divided among operations, depreciation and mortgage interest, excluding
the  results  of its  discontinued  operations  which are not  reflected  in the
following discussion (see Item 1, Note 4).

Rental  income  increased  approximately  3% for both the three and nine  months
ended  December  31,  2007,  as compared to the  corresponding  periods in 2006,
primarily due to an increase in occupancy at four Local  Partnerships and rental
rate increases at several other Local Partnerships.

Other income increased  approximately $55,000 and $39,000 for the three and nine
months  ended  December 31, 2007,  as compared to the  corresponding  periods in
2006,  primarily due to higher cash balances being  invested at the  Partnership
level due to the sale of  property  and a rental  subsidy  adjustment  which was
recorded as other income at one Local Partnership.

                                       11
<PAGE>

Total  expenses,  excluding  repairs and  maintenance  and  operating and other,
remained  fairly  consistent,  with increases of  approximately  2% for both the
three and nine months ended December 31, 2007, as compared to the  corresponding
periods in 2006, respectively.

Repairs and maintenance  expenses increased  approximately  $70,000 and $107,000
for the three  and nine  months  ended  December  31,  2007 as  compared  to the
corresponding  periods  in  2006,  primarily  due to  increases  in  maintenance
contracts including plumbing, elevator maintenance,  gardening service, electric
repairs and  security  at one Local  Partnership,  an  increase in painting  and
decorating,  monitoring and protection service and hardware supplies at a second
Local Partnership and an increase in plumbing and other repairs at a third Local
Partnership.

Operating  and other  expenses  increased  approximately  $26,000  for the three
months ended December 31, 2007 as compared to the corresponding  period in 2006,
primarily due to the timing of the payment of invoices.

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 disclosed 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,
2007,  the fair  value of the  mortgage  notes  payable.  There are no  material
changes to such disclosure amounts as of December 31, 2007.

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
the Chief Financial Officer of Related  Independence L.L.C., the general partner
of the  Partnership  have  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 officers have 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.

                                       12
<PAGE>

                           PART II. OTHER INFORMATION



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

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 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.


                                       13
<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.,
                                       a General Partner



 Date: February 5, 2008
       ----------------
                                       By: /s/ Robert L. Levy
                                           ------------------
                                           Robert L. Levy
                                           Chief Financial Officer



 Date: February 5, 2008
       ----------------
                                       By: /s/ Andrew J. Weil
                                           ------------------
                                           Andrew J. Weil
                                           President and Chief Executive Officer

                                       14