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 June 30, 1997


                                       OR


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


                         Commission File Number 33-89968



                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
             (Exact name of registrant as specified in its charter)



           Delaware                                             13-3809869
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                               Identification No.)


625 Madison Avenue, New York, New York                             10022
(Address of principal executive offices)                        (Zip Code)


Registrant's telephone number, including area code (212)421-5333


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

<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                           Consolidated Balance Sheets
                                   (Unaudited)

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

Property and equipment at cost,
   net of accumulated depreciation
   of $506,933 and $351,046,
   respectively                                   $ 17,147,141     $ 19,801,865
Construction in progress                             6,255,641        1,010,368
Cash and cash equivalents                           13,168,000       17,061,164
Investments available for sale                      21,200,490       16,200,000
Cash held in escrow                                    865,169          865,896
Deferred costs, net of accumulated
   amortization
   of $26,997 and $21,830, respectively              2,248,353        2,179,235
Other assets                                           275,849          262,530
                                                  ------------     ------------

   Total assets                                   $ 61,160,643     $ 57,381,058
                                                  ============     ============
LIABILITIES AND PARTNERS' CAPITAL

Liabilities:
   Mortgage notes payable                         $  9,579,646     $  9,226,190
   Construction loans payable                        6,300,077        3,790,102
   Accounts payable and other
    liabilities                                      3,294,087        2,531,437
   Due to local general partners and
    affiliates                                       1,531,477        1,264,805
   Due to general partner and affiliates               164,160          212,701
                                                  ------------     ------------
    Total liabilities                               20,869,447       17,025,235
                                                  ------------     ------------

Minority interest                                     (719,843)        (718,978)
                                                  ------------     ------------

Partners' capital:
   Limited partners (45,844 BACs
    issued and outstanding)                         41,008,462       41,071,586
   General partner                                       2,577            3,215
                                                  ------------     ------------
    Total partners' capital                         41,011,039       41,074,801
                                                  ------------     ------------

    Total liabilities and partners'
      capital                                     $ 61,160,643     $ 57,381,058
                                                  ============     ============

           See Accompanying Notes to Consolidated Financial Statements

                                       2
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      Consolidated Statements of Operations
                                   (Unaudited)

                                                      =========================
                                                         Three Months Ended
                                                                June 30,
                                                      -------------------------
                                                         1997            1996
                                                      -------------------------
Revenues
   Rental income                                      $ 303,281        $  48,359
   Other income (principally interest
    on capital contributions)                           298,218          239,000
                                                      ---------        ---------
   Total revenues                                       601,499          287,359
                                                      ---------        ---------
Expenses
   General and administrative                           107,815           46,386
   General and administrative-
    related parties (Note 2)                             83,801           39,146
   Repairs and maintenance                               36,816            3,071
   Operating                                             72,980           12,255
   Insurance                                             16,369           10,423
   Interest                                             187,291           15,657
   Depreciation and amortization                        161,054           31,983
                                                      ---------        ---------
   Total expenses                                       666,126          158,921
                                                      ---------        ---------

Income (loss) before minority
   interest                                             (64,627)         128,438
Minority interest in loss of
   subsidiary partnerships                                  865              340
                                                      ---------        ---------

Net income (loss)                                     $ (63,762)       $ 128,778
                                                      =========        =========

Net income (loss) - limited partners                  $ (63,124)       $ 127,490
                                                      =========        =========

Weighted average number of
   BACs outstanding                                      45,844           31,551
                                                      =========        =========

Net income (loss) per weighted
   average BAC                                        $   (1.38)       $    4.04
                                                      =========        =========


           See Accompanying Notes to Consolidated Financial Statements



                                       3
<PAGE>


                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
             Consolidated Statement of Changes in Partners' Capital
                                   (Unaudited)

                               ================================================
                                                   Limited           General
                                    Total          Partners          Partner
                               ------------------------------------------------

Partners' capital -
 April 1, 1997                 $ 41,074,801      $ 41,071,586      $      3,215
Net loss                            (63,762)          (63,124)             (638)
                               ------------      ------------      ------------
Partners' capital -
 June 30, 1997                 $ 41,011,039      $ 41,008,462      $      2,577
                               ============      ============      ============


           See Accompanying Notes to Consolidated Financial Statements


                                       4
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Increase (Decrease) in Cash and Cash Equivalents
                                   (Unaudited)

                                                   ============================
                                                          Three Months Ended
                                                              June 30,
                                                   ----------------------------
                                                       1997             1996
                                                   ----------------------------
Cash flows from operating activities:

   Net income (loss)                               $   (63,762)     $   128,778
                                                   -----------      -----------
   Adjustments to reconcile net
    income (loss) to net cash
    provided by operating
    activities:
   Depreciation and amortization                       161,054           31,983
   Minority interest in loss of
    subsidiary properties                                 (865)            (340)
   Decrease in cash held in escrow                         727                0
   (Increase) decrease in other assets                 (13,319)         108,622
   Increase (decrease) in accounts
    payable and other liabilities                       56,723          (14,298)
   Increase in due to local general
    partners and affiliates                             60,000           20,500
   (Decrease) increase in due to
    general partner and affiliates                     (48,541)          31,060
                                                   -----------      -----------

    Total adjustments                                  215,779          177,527
                                                   -----------      -----------

   Net cash provided by
    operating activities                               152,017          306,305
                                                   -----------      -----------
Cash flows from investing activities:

   Increase in property and equipment                 (702,685)      (1,410,065)
   Increase in construction in progress             (2,043,751)               0
   Decrease in cash held in escrow                           0        1,553,502
   Increase in accounts payable and
    other liabilities                                  705,927                0
   Increase in due to local general
    partners and affiliates                            982,141                0
   Decrease in due to local general
    partners and affiliates                           (775,469)               0
   Increase in investments available
    for sale                                        (5,000,490)      (4,797,588)
   Increase in deferred costs                          (66,013)        (453,459)
                                                   -----------      -----------
   Net cash used in investing
    activities                                      (6,900,340)      (5,107,610)
                                                   -----------      -----------

           See Accompanying Notes to Consolidated Financial Statements


                                       5
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Increase (Decrease) in Cash and Cash Equivalents
                                   (continued)
                                   (Unaudited)

                                                 ==============================
                                                        Three Months Ended
                                                             June 30,
                                                 ------------------------------
                                                       1997             1996
                                                 ------------------------------

Cash flows from financing activities:
   Proceeds from mortgage notes                       363,123                 0
   Repayments of mortgage notes                        (9,667)                0
   Proceeds from construction loans                 2,511,975                 0
   Repayments of construction
    loans                                              (2,000)                0
   Increase in offering costs                               0          (630,960)
   Increase in deferred costs                          (8,272)                0
   Increase in due to
    general partner and affiliates                          0            34,313
   Capital contributions received                           0         5,736,000
                                                 ------------      ------------

Net cash provided by financing
   activities                                       2,855,159         5,139,353
                                                 ------------      ------------

Net increase (decrease) in cash and
   cash equivalents                                (3,893,164)          338,048

Cash and cash equivalents at
   beginning of period                             17,061,164         8,484,832
                                                 ------------      ------------
Cash and cash equivalents at
   end of period                                 $ 13,168,000      $  8,822,880
                                                 ============      ============

Supplemental disclosures of
   noncash investing activities:
   Capitalization of deferred
    acquisition costs                            $          0      $    174,581

   Consolidation of investment in
    subsidiary partnership:*
    Decrease in property and
      equipment                                  $  3,201,522      $          0
     Increase in construction in
      progress                                   $ (3,201,522)     $          0




* Prior to consolidation, investment in subsidiary partnerships are included in
property and equipment.

           See Accompanying Notes to Consolidated Financial Statements



                                       6
<PAGE>


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

Note 1 - General

Independence  Tax Credit  Plus L.P.  IV (a Delaware  limited  partnership)  (the
"Partnership")  was  organized on February 22, 1995,  and  commenced  the public
offering on July 6, 1995.  The  general  partner of the  Partnership  is Related
Independence   L.L.C.,  a  Delaware  limited  liability  company  (the  "General
Partner").

The  Partnership's   business  is  to  invest  in  other  partnerships   ("Local
Partnerships",  "subsidiaries"  or "subsidiary  partnerships")  owning apartment
complexes that are eligible for the low-income  housing tax credit ("Housing Tax
Credit") enacted in the Tax Reform Act of 1986, some of which complexes may also
be eligible for the historic  rehabilitation  tax credit ("Historic Tax Credit";
together with Housing Tax Credits, "Tax Credits").

As of June 30, 1997, the Partnership has acquired a limited partnership interest
in six  subsidiary  partnerships,  all of  which  have  been  consolidated.  The
Partnership  anticipates  acquiring limited partnership  interests in additional
subsidiary  partnerships  in the future.  Except for the interest in Westminster
Park Plaza  ("Westminster"),  the  Partnership's  investment in each  subsidiary
partnership  represents  98.99% of the  partnership  interests in the subsidiary
partnership. As of June 30, 1997, the Partnership has acquired a 47.29% interest
in Westminster and has two options to acquire an additional 48.7% interest and a
3%  interest,   respectively.  The  interest  acquired  by  the  Partnership  in
Westminster gives it full and exclusive voting rights. Through the rights of the
Partnership  and/or an affiliate of the General  Partner,  which affiliate has a
contractual  obligation  to act on behalf  of the  Partnership,  to  remove  the
general  partner of the  subsidiary  partnerships  and to approve  certain major
operating and financial decisions,  the Partnership has a controlling  financial
interest in Westminster as well as in the other subsidiary partnerships in which
it has invested.  On June 19, 1997, the Partnership gave notice of its intention
to exercise its option to purchase the additional  48.7% interest in Westminster
and on July 1, 1997 the Partnership exercised such option.

The  Partnership  is  authorized  to  issue a total  of  100,000  ($100,000,000)
Beneficial Assignment  Certificates ("BACs") which have been registered with the
Securities and Exchange  Commission for sale to the public.  Each BAC represents
all of the economic and virtually all of the ownership rights  attributable to a
Limited Partnership Interest.  The solicitation for the subscription of BACs was
terminated as of May 22, 1996 and the final closing



                                       7
<PAGE>


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

Note 1 - General (continued)

occurred  on August 15,  1996.  As of both June 30,  1997 and March 31, 1997 the
Partnership raised a total of $45,844,000 representing 45,844 BACs.

The  Partnership's  fiscal  quarter ends June 30. All  subsidiaries  have fiscal
quarters  ending March 31. Accounts of the  subsidiaries  have been adjusted for
intercompany transactions from April 1 through June 30.

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

Increases  (decreases)  in  the  capitalization  of  consolidated   subsidiaries
attributable to minority  interest arise from cash  contributions  from and cash
distributions to the minority interest partners.

Losses  attributable to minority interests which exceed the minority  interests'
investment  in a subsidiary  have been charged to the  Partnership.  Such losses
aggregated  $70,539 and $61 for the three  months  ended June 30, 1997 and 1996,
respectively.  The  Partnership's  investment in each subsidiary is equal to the
respective subsidiary's partners' equity less minority interest capital, if any.
In  consolidation,  all  subsidiary  partnership  losses  are  included  in  the
Partnership's  capital account except for losses allocated to minority  interest
capital.

Certain  information  and  note  disclosures   normally  included  in  financial
statements prepared in accordance with generally accepted accounting  principles
have been omitted or condensed.  These condensed financial  statements should be
read in conjunction with the financial  statements and notes thereto included in
the  Partnership's  Annual  Report on Form 10-K for the period  ended  March 31,
1997.

The books and records of the  Partnership are maintained on the accrual basis of
accounting in accordance with generally accepted accounting  principles.  In the
opinion of the General Partner of the Partnership,  the  accompanying  unaudited
financial  statements  contain  all  adjustments   (consisting  only  of  normal
recurring adjustments) necessary to present fairly the financial position of the
Partnership as of June 30, 1997 and the results of operations and cash flows for
the three months ended June 30, 1997 and 1996.  However,  the operating  results
for the three  months ended June 30, 1997 may not be  indicative  of the results
for the year.


                                       8
<PAGE>

                      INDEPENDENCE TAX CREDIT PLUS L.P. IV
                                AND SUBSIDIARIES
                          Notes to Financial Statements
                                  June 30, 1997
                                   (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 are as follows:

A)  Acquisition Fees and Expenses
The General Partner is entitled to an acquisition fee equal to 6.0% of the gross
proceeds  of the  offering  paid upon  investor  closings,  for its  services in
connection  with  assisting  the  Local  Partnerships  in  acquiring   apartment
complexes and supervising the  construction of the complexes.  Such fees will be
capitalized as a cost of the investments upon closing of subsidiary  partnership
acquisitions.  As of June 30, 1997 and March 31, 1997,  $2,750,640 of such costs
have been incurred, of which $874,501 at each date has been capitalized.

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

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



                                       9
<PAGE>


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

Note 2 - Related Party Transactions (continued)

D)  Other Related Party Expenses
The costs  incurred to related  parties for the three months ended June 30, 1997
and 1996 were as follows:
                                                           Three Months Ended
                                                                June 30,
                                                         -----------------------
                                                           1997           1996
                                                         -------         -------
Partnership management fees (a)                          $41,296         $18,445
Expense reimbursement (b)                                 33,858          17,606
Property management fees (c)                               7,647           3,095
Local administrative fee (d)                               1,000               0
                                                         -------         -------
                                                         $83,801         $39,146
                                                         =======         =======

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

(b) The Partnership reimburses the General Partner and its affiliates for actual
Partnership   operating  expenses  incurred  by  the  General  Partner  and  its
affiliates on the  Partnership's  behalf.  The amount of reimbursement  from the
Partnership is limited by the provisions of the Partnership  Agreement.  Another
affiliate of the General Partner  performs asset monitoring for the Partnership.
These  service   include  site  visits  and   evaluations   of  the   subsidiary
partnerships' performance.

(c) Property  management  fees  incurred by the Local  Partnerships  amounted to
$19,607  and  $3,095  for the  three  months  ended  June  30,  1997  and  1996,
respectively. Of these fees $7,647 and $3,095 were incurred to affiliates of the
subsidiary partnerships' general partners.

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


                                       10
<PAGE>

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

Liquidity and Capital Resources

The Partnership's primary source of funds is the proceeds of its offering. Other
sources of funds include interest earned on such proceeds which will be invested
in tax-exempt money market instruments pending acquisition of and final payments
to Local  Partnerships  and a working  capital reserve in the original amount of
2.5% of gross equity raised.  The  solicitation for the subscription of BACs was
terminated as of May 22, 1996 and the final closing occurred on August 15, 1996.
The Partnership has received  $45,844,000 in gross proceeds for BACs pursuant to
a public  offering,  resulting  in net  proceeds  available  for  investment  of
approximately $36,446,000 after volume discounts,  payment of sales commissions,
acquisition  fees  and  expenses,   organization   and  offering   expenses  and
establishment of a working capital reserve.

As of June 30, 1997,  the  Partnership  has invested  approximately  $14,747,000
(including   approximately   $901,650   classified  as  a  loan  repayable  from
sale/refinancing  proceeds in accordance with the Contribution Agreement and not
including  acquisition  fees of  approximately  $875,000) of net proceeds in six
Local Partnerships of which  approximately  $7,189,000 remains to be paid to the
Local Partnerships  (including  approximately  $764,000 being held in escrow) as
certain  benchmarks,  such as  occupancy  level,  must be attained  prior to the
release of the funds. The Partnership has  approximately  $21,699,000  available
for  future   investments.   During  the  three  months  ended  June  30,  1997,
approximately  $879,000  was paid to  Local  Partnerships  (none  of  which  was
released from escrow). The Partnership will be acquiring additional  properties,
and the Partnership may be required to fund potential purchase price adjustments
based  on tax  credit  adjustor  clauses.  There  have  been no  purchase  price
adjustments during the three months ended June 30, 1997.

For the three  months  ended June 30,  1997,  cash and cash  equivalents  of the
Partnership and its six consolidated Local Partnerships decreased  approximately
$3,893,000 due to an increase in property and equipment ($703,000),  an increase
in construction in progress  ($2,044,000),  an increase in investments available
for sale  ($5,000,000)  and an increase in deferred  costs relating to investing
and financing  activities  ($74,000)  which  exceeded cash provided by operating
activities  ($152,000),  an increase in accounts  payable and other  liabilities
relating to  investing  activities  ($706,000),  a net  increase in due to local
general partners and affiliates relating to investing activities  ($207,000) and
net proceeds from mortgage


                                       11
<PAGE>

and construction  loans  ($2,863,000).  Included in the adjustments to reconcile
the net loss to cash flow from  operations is depreciation  and  amortization of
approximately $161,000.

A working capital reserve of approximately $1,146,000 (2.5% of gross equity) has
been established from the  Partnership's  funds available for investment,  which
includes amounts which may be required for potential  purchase price adjustments
based on tax credit adjustor clauses.  At June 30, 1997 and March 31, 1997, none
of this reserve was used. The General Partner believes that these reserves, plus
any cash distributions  received from the operations of the Local  Partnerships,
will  be  sufficient  to  fund  the  Partnership's  ongoing  operations  for the
foreseeable  future. As of June 30, 1997, there have been no cash  distributions
from the Local Partnerships.  Management anticipates receiving  distributions in
the  future,  although  not to a  level  sufficient  to  permit  providing  cash
distributions to the BACs holders.

The property owned by one of the Local Partnerships in which the Partnership has
invested has been in operation and has maintained stable occupancy since 1990.

The  Partnership  has negotiated  Development  Deficit  Guarantees with the five
other Local  Partnerships in which it has invested.  The Local General  Partners
and/or their  affiliates have agreed to fund  development  deficits  through the
breakeven dates of each of the five Local Partnerships.

The Partnership has negotiated  Operating  Deficit Guaranty  Agreements with the
five Local Partnerships by which the general partners of such Local Partnerships
and/or their  affiliates have agreed to fund operating  deficits for a specified
period of time. The terms of the Operating Deficit Guaranty  Agreements vary for
each of these Local Partnerships, with maximum dollar amounts to be funded for a
specified  period of time,  generally three years,  commencing on the break-even
date.  The  gross  amount  of  the  Operating  Deficit   Guarantees   aggregates
approximately $1,008,000 as of June 30, 1997.

The Partnership has also negotiated a Rent-Up Guaranty  Agreement with one Local
Partnership, in which the Local General Partner agrees to pay liquidated damages
if predetermined occupancy rates are not achieved.

The Development  Deficit,  Operating Deficit and the Rent-Up Guaranty Agreements
were negotiated to protect the Partnership's  interest in the Local Partnerships
and to provide incentive to the Local General Partners to generate positive cash
flow.



                                       12
<PAGE>


The  Partnership has invested or committed for investment  approximately  40% of
the net proceeds  available for investment in six Local  Partnerships,  of which
two commenced to generate tax credits in 1996 and four are currently anticipated
to commence to generate tax credits in 1997. The Partnership does not anticipate
that it will  acquire,  prior to the end of 1997,  interests  in any  additional
Local Partnerships which will generate tax credits in 1997. Additionally, due to
recent  increases  in market  demand  for  investments  in  properties  that are
eligible  to receive tax credits  and  limitations  on the types of  investments
which may be obtained by the  Partnership,  the purchase  price for interests in
Local  Partnerships  which are  qualified for purchase by the  Partnership  have
increased.  As a result of these changes in market,  management does not believe
that  the  Partnership  will  be able  to  invest  the  proceeds  available  for
investment in a manner which will enable the  Partnership to achieve tax credits
in the range of $140-150 for each $1,000 BAC each year in which the  Partnership
is receiving its full entitlement of tax credits.

Management is not aware of any trends or events,  commitments or  uncertainties,
which  have not  otherwise  been  disclosed  that  will or are  likely to impact
liquidity in a material way.  Management  believes the only impact would be from
laws that have not yet been adopted.  The portfolio  will be  diversified by the
location of the  properties  around the United States so that if one area of the
country is experiencing  downturns in the economy,  the remaining  properties in
the   portfolio   may  be   experiencing   upswings.   However  the   geographic
diversification  of the portfolio may not protect against a general  downturn in
the  national  economy.  The tax  credits  will be attached to the project for a
period of ten  years,  and will be  transferable  with the  property  during the
remainder of such ten-year period. If the General Partner determined that a sale
of a property is warranted,  the remaining tax credits would transfer to the new
owner,  thereby  adding  value to the  property  on the  market,  which  are not
included in the financial statement carrying amount.

Results of Operations

As of June 30, 1997 and 1996,  the  Partnership  had acquired an interest in six
and  three  Local  Partnerships,   respectively,  six  and  one  of  which  were
consolidated at June 30, 1997 and 1996, respectively. The Partnership intends to
utilize the net  proceeds of the  offering to acquire  additional  interests  in
Local Partnerships.

The Partnership's results of operations for the three months ended June 30, 1997
and  1996  consisted  primarily  of (1)  approximately  $276,000  and  $210,000,
respectively,  of  tax-exempt  interest  income  earned on funds  not  currently
invested in Local Partnerships and


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<PAGE>

(2) the results of the  Partnership's  investment in three of six and one of one
consolidated Local Partnerships, respectively.

For the three months ended June 30, 1997 as compared to 1996,  all categories of
income and expenses  increased and the results of operations  are not comparable
due to the  acquisition,  construction  and rent up of  properties,  and are not
reflective of future  operations of the Partnership due to uncompleted  property
construction,  rent up of properties  and the continued  utilization  of the net
proceeds of the Offering to invest in Local Partnerships.  In addition, interest
income  will  decrease  in  future  periods  since  it  is  anticipated  that  a
substantial  portion of the proceeds from the Offering will be invested in Local
Partnerships.

For  the  three  months  ended  June  30,  1997  and  1996,  one  and one of the
Partnership's six and one consolidated properties,  respectively,  had completed
construction  in a previous  fiscal year,  but were in various stages of rent up
for the three months. In addition, two and zero of the properties, respectively,
had completed  construction  and were rented up in a previous fiscal year. As of
the end of the three months ended June 30, 1997 and 1996,  three and zero of the
Partnership's  six and one  consolidated  properties,  respectively,  were still
under  construction  and  four  and zero of the  properties,  respectively,  had
construction loans with commitments for permanent financing.


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<PAGE>

           PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings - None

Item 2.   Changes in Securities - None

Item 3.   Defaults Upon Senior Securities - None

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

Item 5.   Other Information - None

Item 6.   Exhibits and Reports on Form 8-K

          (a) Exhibits

               (4) Form of Amended and Restated Agreement of Limited Partnership
          of the Partnership (attached to the Prospectus as Exhibit A)*

               (10A)Form of Subscription  Agreement  (attached to the Prospectus
          as Exhibit B)*

               (10B)Form of Escrow  Agreement  between the  Partnership  and the
          Escrow Agent**

               (10C)Form  of  Purchase  and Sales  Agreement  pertaining  to the
          Partnership's acquisition of Local Partnership Interests**

               (10D)Form   of  Amended  and   Restated   Agreement   of  Limited
          Partnership of Local Partnerships**

               (27) Financial Data Schedule (filed herewith)

               *  Incorporated  herein by reference to the final  Prospectus  as
          filed pursuant to Rule 424 under the Securities Act of 1933.

               ** Filed as an exhibit to the Registration Statement on Form S-11
          of the  Partnership  (File No.  33-89968) and  incorporated  herein by
          reference thereto.


               (b)  Reports  on Form 8-K - No  reports  on Form  8-K were  filed
          during the quarter.


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<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:  August 13, 1997

                                  By:/s/ Alan P. Hirmes
                                     --------------------------------
                                     Alan P. Hirmes,
                                     Senior Vice President
                                     (principal financial officer)

Date:  August 13, 1997

                                  By:/s/ Richard A. Palermo
                                     --------------------------------
                                     Richard A. Palermo,
                                     Treasurer
                                     (principal accounting officer)



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