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, 2006


                                       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,
                                                                           2006            2006
                                                                       ------------    ------------
                                                                       (Unaudited)      (Audited)
<S>                                                                    <C>             <C>
                                     ASSETS

Property and equipment - at cost, net of accumulated depreciation of
  $20,868,575 and $19,086,200, respectively                            $ 60,602,832    $ 62,385,207
Cash and cash equivalents                                                 1,396,591       1,486,123
Cash held in escrow                                                       3,581,762       3,231,430
Deferred costs, net of accumulated amortization of $625,966 and
  $584,586, respectively                                                    558,533         599,913
Other assets                                                                515,333         540,696
                                                                       ------------    ------------
Total assets                                                           $ 66,655,051    $ 68,243,369
                                                                       ============    ============


                   LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)


Liabilities:
   Mortgage notes payable                                              $ 35,146,725    $ 35,549,933
   Accounts payable and other liabilities                                10,279,463       9,675,759
   Due to local general partners and affiliates                           1,640,271       1,614,776
   Due to general partner and affiliates                                  3,527,652       3,261,432
                                                                       ------------    ------------
   Total liabilities                                                     50,594,111      50,101,900
                                                                       ------------    ------------

Minority interest                                                         1,860,181       1,870,135
                                                                       ------------    ------------

Partners' capital (deficit):
   Limited partners (45,844 Beneficial Assignment Certificates
    ("BACs") issued and outstanding)                                     14,382,850      16,516,156
   General partner                                                         (182,091)       (244,822)
                                                                       ------------    ------------
Total partners' capital (deficit)                                        14,200,759      16,271,334
                                                                       ------------    ------------
Total liabilities and partners' capital (deficit)                      $ 66,655,051    $ 68,243,369
                                                                       ============    ============
</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,
                                                       --------------------------    --------------------------
                                                           2006           2005           2006           2005
                                                       -----------    -----------    -----------    -----------
<S>                                                    <C>            <C>            <C>            <C>
Revenues
Rental income                                          $ 1,494,559    $ 1,489,098    $ 4,456,191    $ 4,418,285
Other income                                                73,845         82,452        260,400        242,265
                                                       -----------    -----------    -----------    -----------
Total revenues                                           1,568,404      1,571,550      4,716,591      4,660,550
                                                       -----------    -----------    -----------    -----------

Expenses
General and administrative                                 352,389        386,454      1,149,516      1,206,655
General and administrative-related parties (Note 2)        219,448        195,354        572,188        607,402
Repairs and maintenance                                    218,732        272,170        764,649        718,439
Operating                                                  230,427        220,398        699,010        616,954
Taxes                                                       35,556         41,650        126,030        134,284
Insurance                                                   97,539         97,647        287,078        292,959
Interest                                                   484,929        514,541      1,459,175      1,499,066
Depreciation and amortization                              609,932        614,278      1,823,755      1,833,731
                                                       -----------    -----------    -----------    -----------
Total expenses                                           2,248,952      2,342,492      6,881,401      6,909,490
                                                       -----------    -----------    -----------    -----------

Loss before minority interest                             (680,548)      (770,942)    (2,164,810)    (2,248,940)
Minority interest in loss of subsidiary partnerships           206          6,070          9,955         23,410
                                                       -----------    -----------    -----------    -----------
Net loss                                               $  (680,342)   $  (764,872)   $(2,154,855)   $(2,225,530)
                                                       ===========    ===========    ===========    ===========

Net loss - limited partners                            $  (673,539)   $  (757,223)   $(2,133,306)   $(2,203,275)
                                                       ===========    ===========    ===========    ===========

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

Net loss per BAC                                       $    (14.69)   $    (16.52)   $    (46.53)   $    (48.06)
                                                       ===========    ===========    ===========    ===========
</TABLE>

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, 2006       $ 16,271,334    $ 16,516,156    $   (244,822)

Net loss                                            (2,154,855)     (2,133,306)        (21,549)

Contribution (Note 2)                                   84,280               0          84,280
                                                  ------------    ------------    ------------

Partners' capital (deficit) - December 31, 2006   $ 14,200,759    $ 14,382,850    $   (182,091)
                                                  ============    ============    ============
</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,
                                                                                  --------------------------
                                                                                         2006            2005
                                                                                  -----------    -----------
<S>                                                                               <C>            <C>
Cash flows from operating activities:
Net loss                                                                          $(2,154,855)   $(2,225,530)
                                                                                  -----------    -----------
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization                                                       1,823,755      1,833,731
Minority interest in loss of subsidiary partnerships                                   (9,955)       (23,410)
Capital contribution - General Partner                                                 84,280              0
Increase in cash held in escrow                                                      (318,216)      (311,576)
Decrease (increase) in other assets                                                    25,363        (43,420)
Increase in accounts payable and other liabilities                                    603,705        586,339
Decrease in due to local general partners and affiliates                               (3,876)       (49,499)
Increase in due to general partner and affiliates                                     266,220        465,127
                                                                                  -----------    -----------
Total adjustments                                                                   2,471,276      2,457,292
                                                                                  -----------    -----------

Net cash provided by operating activities                                             316,421        231,762
                                                                                  -----------    -----------

Cash flows from investing activities:
(Increase) decrease in cash held in escrow                                            (32,116)        20,590
Increase (decrease) in due to local general partners and affiliates                    29,371        (37,145)
                                                                                  -----------    -----------
Net cash used in investing activities                                                  (2,745)       (16,555)
                                                                                  -----------    -----------

Cash flows from financing activities:
Repayment of mortgage notes                                                          (403,208)      (309,748)
Decrease in capitalization of consolidated subsidiaries attributable to
  minority interest                                                                         0        (72,600)
                                                                                  -----------    -----------
Net cash used in financing activities                                                (403,208)      (382,348)
                                                                                  -----------    -----------

Net decrease in cash and cash equivalents                                             (89,532)      (167,141)
Cash and cash equivalents at beginning of period                                    1,486,123      1,663,931
                                                                                  -----------    -----------
Cash and cash equivalents at end of period                                        $ 1,396,591    $ 1,496,790
                                                                                  ===========    ===========

Supplemental disclosure of cash flow information:
Cash paid during period for interest                                              $   924,310    $ 1,105,928
                                                                                  ===========    ===========
</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, 2006
                                   (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  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 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 $2,000, $2,000, $7,000 and $5,000 for each of the three
and  nine  months  ended   December  31,  2006  and  2005,   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
("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, 2006.

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  financial  position  of  the
Partnership as of December 31, 2006, its results of operations for the three and
nine  months  ended  December  31, 2006 and 2005 and its cash flows for the nine
months ended December 31, 2006 and 2005. However,  the operating results for the
nine months ended December 31, 2006 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, 2006 and 2005 were as follows:
<TABLE>
<CAPTION>
                                                          Three Months Ended    Nine Months Ended
                                                             December 31,          December 31,
                                                         -------------------   -------------------
                                                           2006       2005       2006       2005
                                                         --------   --------   --------   --------
<S>                                                      <C>        <C>        <C>        <C>
Partnership management fees (a)                          $ 84,280   $ 84,280   $252,840   $252,840
Expense reimbursement (b)                                  29,494     55,570     83,072    179,821
Local administrative fee (c)                               19,000     15,000     57,000     45,000
                                                         --------   --------   --------   --------
Total general and administrative-General Partner          132,774    154,850    392,912    477,661
                                                         --------   --------   --------   --------
Property management fees incurred to affiliates of the
  subsidiary partnerships' general partners (d)            86,674     40,504    179,276    129,741
                                                         --------   --------   --------   --------
Total general and administrative-related parties         $219,448   $195,354   $572,188   $607,402
                                                         ========   ========   ========   ========
</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.   Management  has
determined  that the  Partnership  will not be in a position  to pay  additional
partnership  management  fees during the current  year and as such,  the General
Partner has made a  contribution  to the  Partnership  in the amount of the fair

                                       6
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                                December 31, 2006
                                   (Unaudited)


value of the services  provided for the quarter ended December 31, 2006.  Unpaid
partnership  management  fees for any year have been,  and will  continue to be,
accrued without interest and will be payable from working capital reserves or to
the extent of available funds after the Partnership  has made  distributions  to
the limited  partners of sale or  refinancing  proceeds  equal to their original
capital  contributions  plus a 10%  priority  return  thereon (to the extent not
theretofore  paid out of cash  flow).  Partnership  management  fees owed to the
General  Partner  amounting to  approximately  $2,472,000  and  $2,304,000  were
accrued and unpaid as of December 31, 2006 and March 31, 2006, 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
$136,813,  $90,097,  $322,594  and  $279,910 for the three and nine months ended
December  31,  2006 and 2005,  respectively.  Of these fees,  $86,674,  $40,504,
$179,276  and  $129,741  were   incurred  to   affiliates   of  the   subsidiary
partnerships' general partners ("Local 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, 2006.

                                       7
<PAGE>


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

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

As of December 31, 2006, the Partnership has 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  approximately  $1,060,000  remains  to be paid to the Local  Partnerships
(including  approximately  $521,000 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, 2006,  approximately  $18,000 was paid
to the Local Partnerships.

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

Tabular Disclosure of Contractual Obligations
---------------------------------------------
The Partnership  discloses in Item 7 of the Partnership's  Annual Report on Form
10-K for the year ended March 31, 2006,  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,
2006.

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, 2006,  cash and cash  equivalents of the
Partnership  and its  fourteen  consolidated  Local  Partnerships  decreased  by
approximately  $90,000.  This decrease was due to  repayments of mortgage  notes
$403,000,  an increase in cash held in escrow  relating to investing  activities
$32,000   which   exceeded  net  cash   provided  by  operating   activities  of
approximately  $316,000 and an increase in amounts due to local general partners
and  affiliates  relating to  investing  activities  of  approximately  $29,000.
Included in the  adjustments  to reconcile  the net loss to net cash provided by
operating   activities  is  depreciation   and   amortization  of  approximately
$1,824,000.

Total  expenses for the three and nine months ended  December 31, 2006 and 2005,
excluding   depreciation   and   amortization,    interest   and   general   and
administrative-related  parties,  totaled $934,643,  $1,018,319,  $3,026,283 and
$2,969,291, respectively.

Accounts  payable and other  liabilities  totaled  $10,279,463  and  $9,675,759,
respectively, which are comprised of the following amounts:
<TABLE>
<CAPTION>
                                                  December 31,   March 31,
                                                      2006         2006
                                                  -----------   -----------
<S>                                               <C>           <C>
Accounts payable                                  $   570,405   $   481,944
Accrued interest payable                            9,326,610     8,791,745
Security deposits payable                             382,448       402,070
                                                  -----------   -----------

   Total accounts payable and other liabilities   $10,279,463   $ 9,675,759
                                                  ===========   ===========
</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 91% of the total accounts payable and other liabilities  amount at
both December 31, 2006 and March 31, 2006.  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, 2006,  there is  approximately  $126,000 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,  2006,  approximately  $16,000 of cash  distributions  were
received from the Local Partnerships.

                                       8
<PAGE>

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

Partnership   management  fees  owed  to  the  General   Partner   amounting  to
approximately  $2,472,000 and $2,304,000  were accrued and unpaid as of December
31, 2006 and March 31, 2006,  respectively.  Management has determined  that the
Partnership will not be in a position to pay additional  partnership  management
fees  during  the  current  year and as such,  the  General  Partner  has made a
contribution  to the  Partnership  in the amount of the fair  value of  services
provided for the quarter ended  December 31, 2006 (see Item 1, Note 2).  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.

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 even 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 at various times through  December 31, 2010 with
respect  to the  Local  Partnerships  depending  upon  when  the  Credit  Period
commenced.

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 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, 2006.

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.
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, 2006, 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, 2006
and  2005  continued  to be in the  form of  rental  income  with  corresponding
expenses divided among operations, depreciation and mortgage interest.

Rental  income  increased  less than 1% for both the three and nine months ended
December 31, 2006, as compared to the corresponding periods in 2005.

Other income decreased  approximately $9,000 for the three months ended December
31, 2006, as compared to the  corresponding  period in 2005,  primarily due to a
rental  subsidy  adjustment  which  was  recorded  as other  income at one Local
Partnership.

Total expenses,  excluding general and  administrative-related  parties, repairs
and  maintenance,  operating  and  taxes,  remained  fairly  consistent,  with a
decrease of approximately 4% and 2% for the three and nine months ended December
31, 2006, respectively, as compared to the corresponding periods in 2005.

General and  administrative-related  parties  expenses  increased  approximately
$24,000  for the three  months  ended  December  31,  2006,  as  compared to the
corresponding period in 2005, primarily due to an incentive management fee taken
in 2006 at one Local Partnership.

                                       9
<PAGE>

Repairs and maintenance  decreased  approximately $53,000 for three months ended
December 31, 2006, as compared to the  corresponding  period in 2005,  primarily
due to roof  renovation  costs  at one  Local  Partnership  in 2005  and  carpet
replacement costs at a second Local Partnership in 2005.

Operating expense increased  approximately $10,000 and $82,000 for the three and
nine months ended December 31, 2006, as compared to the corresponding periods in
2005, primarily due to an increase in utility costs at the Local Partnerships.

Taxes  decreased  approximately  $6,000 and $8,000 for the three and nine months
ended December 31, 2006, respectively,  as compared to the corresponding periods
in  2005,  primarily  due to an  overaccrual  in the  prior  year  at one  Local
Partnership.

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,  2006,  the fair value of the  mortgage  notes  payable.  There are no
material changes to such disclosure amounts as of December 31, 2006.

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 1A.   Risk Factors - No changes

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

           As previously  disclosed,  the Partnership recently became aware of a
           tender  offer by  Peachtree  Partners,  Ira  Gaines  and Barry  Zemel
           (collectively,   the   "Offerors")  to  purchase  the   Partnership's
           outstanding  limited partnership units. The Offerors seek to purchase
           up to 4.9% of the  Partnership's  outstanding  units  (including  the
           units  that  they  currently  own) at a price of $60 per  unit,  less
           certain   reductions   to   that   purchase   price   (including   an
           "administrative  fee" of $150 per selling  investor)  as described in
           the Offerors' written tender offer materials dated November 22, 2006.

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).

           (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.


                                       11
<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 25, 2007
      ----------------

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


Date: January 25, 2007
      ----------------

                                            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, certify that:

     1)  I have reviewed this quarterly report on Form 10-Q for the period ended
         December 31, 2006 of the registrant;

     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 condensed consolidated 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 registrant 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 registrant 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
         registrant 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 registrant'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  registrant's  internal
         control over financial  reporting that occurred during the registrant's
         most  recent  fiscal  quarter  that  has  materially  affected,  or  is
         reasonably  likely to  materially  affect,  the  registrant'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 registrant's  auditors and to
         the audit committee of the registrant's  board of directors (or persons
         performing the equivalent functions):

         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  registrant'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  registrant's
         internal control over financial reporting.



         Date: January 25, 2007
               ----------------

                                                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
on Form 10-Q for the period ended December 31, 2006 as filed with the Securities
and Exchange  Commission  ("SEC") on the date hereof (the "Report"),  I, Alan P.
Hirmes,  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
registrant.


A signed  original of this  written  statement  required by Section 906 has been
provided to the  registrant and will be retained by the registrant 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 25, 2007