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, 2008





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 organization)
                    
                    (I.R.S.
      Employer 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  xNo  [  ]








Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting
company.  See the definitions of “large accelerated filer”,
“accelerated filer” and “smaller reporting company” in Rule 12b-2 of the
Exchange Act.








Large
      accelerated filer [  ]
            
            Accelerated
      filer  [  ]Non-accelerated
      filer [  ]  (Do not check if a smaller reporting
      company)
            
            Smaller
      reporting company  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







PART I –
FINANCIAL INFORMATION





Item 1.
Financial Statements





INDEPENDENCE
TAX CREDIT PLUS L.P. IV


AND
SUBSIDIARIES


Condensed
Consolidated Balance Sheets








December
      31,
              2008
            
            March
      31,
              2008(Unaudited)
            
            (Audited)ASSETSOperating
      assetsProperty
      and equipment - (at cost, net of accumulated depreciation of $21,481,661
      and $21,186,975, respectively)
            
            $
            45,891,718
            
            $
            49,023,752Cash
      and cash equivalents
            
            
            1,497,879
            
            
            2,231,576Cash
      held in escrow
            
            
            2,470,741
            
            
            2,816,310Deferred
      costs (net of accumulated amortization of $698,250 and $731,095,
      respectively)
            
            
            320,426
            
            
            409,498Due
      from local general partners and affiliates
            
            
            326,985
            
            
            299,985Other
      assets
            
            
            608,238
            
            
            517,343Total
      operating assets
            
            $
            51,115,987
            
            $
            55,298,464Assets
      of discontinued operations (Note 5):Property
      and equipment held for sale (net of accumulated depreciation of $1,310,841
      and $0,respectively)
            
            
            1,571,735
            
            
            0Other
      assets related to discontinued operations
            
            
            1,397,855
            
            
            554,439Total
      discontinued assets
            
            
            2,969,590
            
            
            554,439Total
      assets
            
            $
            54,085,577
            
            $
            55,852,903LIABILITIES
      AND PARTNERS’ CAPITAL (DEFICIT)Operating
      liabilitiesMortgage
      notes payable
            
            $
            25,231,884
            
            $
            27,258,408Accounts
      payable
            
            
            455,503
            
            
            434,095Accrued
      interest payable
            
            
            6,471,620
            
            
            6,010,799Security
      deposit payable
            
            
            314,863
            
            
            330,190Due
      to local general partners and affiliates (Note 2)
            
            
            1,705,865
            
            
            1,823,782Due
      to general partners and affiliates (Note 2)
            
            
            2,069,337
            
            
            2,757,581Total
      operating liabilities
            
            
            36,249,072
            
            
            38,614,855Liabilities
      of discontinued operations (Note 5)Mortgage
      notes payable
            
            
            1,748,651
            
            
            216,891Accounts
      payable and other liabilities
            
            
            1,325,245
            
            
            18Total
      discontinued liabilities
            
            
            3,073,896
            
            
            216,909Total
      liabilities
            
            
            39,322,968
            
            
            38,831,764Minority
      interests
            
            
            1,262,490
            
            
            1,456,791Commitments
      and contingencies (Note 6)Partners’
      capital (deficit):Limited
      partners – 45,844 Beneficial Assignment Certificates (“BACs”) issued and
      outstanding
            
            
            13,772,653
            
            
            15,816,240General
      partners
            
            
            (272,534
            )
            
            (251,892
            )Total
      partners’ capital (deficit)
            
            
            13,500,119
            
            
            15,564,348Total
      liabilities and partners’ capital (deficit)
            
            $
            54,085,577
            
            $
            55,852,903The
      accompanying notes are an integral part of these condensed consolidated
      financial statements.


- 2
-


INDEPENDENCE
TAX CREDIT PLUS L.P. IV


AND
SUBSIDIARIES


Condensed
Consolidated Statements of Operations


(Unaudited)














Three
      Months Ended
              December
      31,
            
            Nine
      months Ended
              December
      31,2008
            
            2007*
            
            2008
            
            2007*Operations:RevenuesRental
      income
            
            $
            1,216,425
            
            $
            1,169,950
            
            $
            3,603,202
            
            $
            3,494,601Other
            
            
            76,848
            
            
            116,989
            
            
            214,795
            
            
            265,057Total
      revenues
            
            
            1,293,273
            
            
            1,286,939
            
            
            3,817,997
            
            
            3,759,658ExpensesGeneral
      and administrative
            
            
            272,382
            
            
            244,423
            
            
            925,730
            
            
            951,132General
      and administrative-related parties (Note 2)
            
            
            179,332
            
            
            227,619
            
            
            527,565
            
            
            586,193Repairs
      and maintenance
            
            
            265,495
            
            
            239,030
            
            
            726,494
            
            
            699,736Operating
      and other
            
            
            241,726
            
            
            201,437
            
            
            621,194
            
            
            564,389Real
      estate taxes
            
            
            30,753
            
            
            34,981
            
            
            95,011
            
            
            102,985Insurance
            
            
            74,410
            
            
            86,648
            
            
            224,276
            
            
            235,518Interest
            
            
            348,983
            
            
            391,489
            
            
            1,053,776
            
            
            1,106,098Depreciation
      and amortization
            
            
            527,332
            
            
            535,672
            
            
            1,575,945
            
            
            1,578,741Total
      expenses
            
            
            1,940,413
            
            
            1,961,299
            
            
            5,749,991
            
            
            5,824,792Loss
      before minority interest and discontinued operations
            
            
            (647,140
            )
            
            (674,360
            )
            
            (1,931,994
            )
            
            (2,065,134
            )Minority
      interest in loss of subsidiaries from operations
            
            
            (5,778
            )
            
            (357,359
            )
            
            (18,570
            )
            
            (363,418
            )Loss
      from continuing operations
            
            
            (652,918
            )
            
            (1,031,719
            )
            
            (1,950,564
            )
            
            (2,428,552
            )Discontinued
      operations:(Loss)
      income from discontinued operations (including minority interest) (Note
      4)
            
            
            (48,266
            )
            
            4,998,216
            
            
            (113,665
            )
            
            4,800,328Net
      (loss) income
            
            $
            (701,184
            )
            $
            3,966,497
            
            $
            (2,064,229
            )
            $
            2,371,776Loss
      from continuing operations – limited partners
            
            $
            (646,389
            )
            $
            (1,021,402
            )
            $
            (1,931,058
            )
            $
            (2,404,266
            )(Loss)
      income from discontinued operations (including minority interest) –
      limited partners
            
            
            (47,783
            )
            
            4,948,234
            
            
            (112,529
            )
            
            4,752,324Net
      (loss) income – limited partners
            
            $
            (694,172
            )
            $
            3,926,832
            
            $
            (2,043,587
            )
            $
            2,348,058Number
      of BACs outstanding
            
            
            45,844
            
            
            45,844
            
            
            45,844
            
            
            45,844Loss
      from continuing operations per weighted average BAC
            
            $
            (14.10
            )
            $
            (22.28
            )
            $
            (42.12
            )
            $
            (52.44
            )(Loss)
      income from discontinued operations per weighted average
    BAC
            
            
            (1.04
            )
            
            107.94
            
            
            (2.46
            )
            
            103.66Net
      (loss) income per weighted average BAC
            
            $
            (15.14
            )
            $
            85.66
            
            $
            (44.58
            )
            $
            51.22*Reclassified
      for comparative purposes.
              
              The
      accompanying notes are an integral part of these condensed consolidated
      financial statements.







- 3
-


INDEPENDENCE
TAX CREDIT PLUS L.P. IV


AND
SUBSIDIARIES


Condensed
Consolidated Statement of Changes in Partners’ Capital (Deficit)


(Unaudited)














Total
            
            
            Limited
              Partners
            
            
            General
              PartnerPartners’
      capital (deficit) – April 1, 2008
            
            $
            15,564,348
            
            
            $
            15,816,240
            
            
            $
            (251,892
            )Net
      loss
            
            
            (2,064,229
            )
            
            
            (2,043,587
            )
            
            
            (20,642
            )Partners’
      capital (deficit) – December 31, 2008
            
            $
            13,500,119
            
            
            $
            13,772,653
            
            
            $
            (272,534
            )The
      accompanying notes are an integral part of these condensed consolidated
      financial statements.








- 4
-


INDEPENDENCE
TAX CREDIT PLUS L.P. IV


AND
SUBSIDIARIES


Condensed
Consolidated Statements of Cash Flows


(Unaudited)











Nine
      Months Ended
                  December
      31,2008
                
                2007Cash
      flows from operating activities:Net
      income (loss)
                
                $
                (2,064,229
                )
                $
                2,371,776Adjustments
      to reconcile net loss to net cash (used in) provided by operating
      activities:Depreciation
      and amortization
                
                
                1,661,573
                
                
                1,774,911Loss
      on sale of property
                
                
                34,242
                
                
                121,324Minority
      interest in income of subsidiary partnerships
                
                
                17,784
                
                
                (4,911,970
                )Decrease
      (increase) in cash held in escrow
                
                
                65,450
                
                
                (974
                )Increase
      in other assets
                
                
                (244,373
                )
                
                (161,578
                )Decrease
      in accounts payable
                
                
                (241,758
                )
                
                131,244Increase
      in accrued interest payable
                
                
                462,321
                
                
                383,945(Decrease)
      increase in security deposit payable
                
                
                (13,207
                )
                
                (109,275
                )Decrease
      in due to local general partners and affiliates
                
                
                0
                
                
                (23,923
                )Increase
      in due to general partner and affiliates
                
                
                (635,244
                )
                
                (1,056,669
                )Total
      adjustments
                
                
                1,106,788
                
                
                (3,852,965
                )Net
      cash used in operating activities
                
                
                (957,441
                )
                
                (1,481,189
                )Cash
      flows from investing activities:Improvements
      to property and equipment
                
                
                (170,026
                )
                
                0Decrease
      in cash held in escrow
                
                
                112,219
                
                
                311,833Proceeds
      from sale of property
                
                
                303,289
                
                
                2,513,602Increase
      in due from local general partner and affiliates
                
                
                (27,000
                )
                
                0Net
      payments from (to) local general partners and affiliates
                
                
                2,648
                
                
                (39,670
                )Net
      cash provided by investing activities
                
                
                221,130
                
                
                2,785,765Cash
      flows from financing activities:Repayments
      of mortgage notes
                
                
                (277,873
                )
                
                (371,812
                )Increase
      in due to selling partners
                
                
                0
                
                
                67,404Decrease
      in capitalization of consolidated subsidiaries attributable to minority
      interest
                
                
                (156,034
                )
                
                (150,107
                )Net
      cash used in financing activities
                
                
                (433,907
                )
                
                (454,515
                )Net
      (decrease) increase in cash and cash equivalents
                
                
                (1,170,218
                )
                
                850,061Cash
      and cash equivalents at beginning of period
                
                
                2,668,101
                
                
                1,375,669Cash
      and cash equivalents at end of period*
                
                $
                1,497,883
                
                $
                2,225,730*  
      Cash and cash equivalents, end of period, includes cash and cash
      equivalents from discontinued operations of $4 and $20,586,
      respectively.Summarized
      below are the components of the loss on sale of property:Proceeds
      from sale of investment – net
                
                $
                (303,289
                )
                $
                (2,513,602
                )Decrease
      in property and equipment, net of accumulated depreciation
                
                
                0
                
                
                8,693,866Decrease
      in cash held in escrow
                
                
                0
                
                
                68,129Decrease
      (increase) in other assets
                
                
                54,000
                
                
                (15,427
                )Decrease
      in mortgage notes payable
                
                
                (216,891
                )
                
                (7,369,675
                )Increase
      in accounts payable and other liabilities
                
                
                436,508
                
                
                187,299Decrease
      in accrued interest payable
                
                
                0
                
                
                (3,822,866
                )Decrease
      in security deposit payable
                
                
                0
                
                
                (45
                )Decrease
      in due from local general partner and affiliates
                
                
                63,914
                
                
                0Decrease
      in due to selling partners
                
                
                0
                
                
                (67,404
                )Decrease
      in deferred costs
                
                
                0
                
                
                29,965Increase
      in capitalization of consolidated subsidiaries attributable to minority
      interest
                
                
                0
                
                
                4,931,084The
      accompanying notes are an integral part of these condensed consolidated
      financial statements.





- 5
-
 INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Notes to
Condensed Consolidated Financial Statements
 December
31, 2008
 (Unaudited)


NOTE 1 –
General





The
condensed consolidated financial statements include the accounts of Independence
Tax Credit Plus L.P. IV (the “Partnership”) and thirteen 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, 2008, the Partnership’s limited partnership interest in one Local
Partnership and the property and the related assets and liabilities of one Local
Partnership have been sold (see Note 4).  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 (“Local General Partners”) 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 for the three and nine months ended December
31, 2008 and 2007, 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,
2008.





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, 2008, the results of its operations for the
three and nine months ended December 31, 2008 and 2007 and its cash flows for
the nine months ended December 31, 2008 and 2007.  However, the
operating results for the nine months ended December 31, 2008 may not be
indicative of the results for the entire year.




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 (“SFAS”) 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, 2008, the Partnership has not
recorded any loss on impairment of assets or reductions to estimated fair
value.
  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.
 - 6
-
 INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Notes to
Condensed Consolidated Financial Statements
 December
31, 2008
 (Unaudited)


NOTE 2 –
Related Party Transactions





A)
            Related
      Party Expenses





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, 2008 and 2007 were as follows:





Three
      Months Ended
              December
      31,
            
            Nine
      months Ended
              December
      31,2008
            
            2007*
            
            2008
            
            2007*Partnership
      management fees (a)
            
            $
            75,425
            
            $
            69,426
            
            $
            220,225
            
            $
            237,986Expense
      reimbursement (b)
            
            
            28,904
            
            
            61,550
            
            
            79,354
            
            
            127,476Local
      administrative fee (c)
            
            
            17,750
            
            
            14,500
            
            
            53,250
            
            
            43,500Total
      general and administrative-General Partners
            
            
            122,079
            
            
            145,476
            
            
            352,829
            
            
            408,962Property
      management fees incurred to affiliates of the subsidiary partnerships’
      general partners (d)
            
            
            57,253
            
            
            82,143
            
            
            174,736
            
            
            177,231Total
      general and administrative-related parties
            
            $
            179,332
            
            $
            227,619
            
            $
            527,565
            
            $
            586,193*Reclassified
      for comparative purposes.






The costs
incurred to related parties from discontinued operations for the three and nine
months ended December 31, 2008 and 2007 were as follows:





Three
      Months Ended
              December
      31,
            
            Nine
      Months Ended
              December
      31,2008
            
            2007
            
            2008
            
            2007Local
      administrative fee (c)
            
            $
            1,250
            
            $
            1,250
            
            $
            3,750
            
            $
            3,750Total
      general and administrative-related parties
            
            $
            1,250
            
            $
            1,250
            
            $
            3,750
            
            $
            3,750








(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 only to the extent of available funds after payments on all
Partnership liabilities have been made other than those owed to the General
Partner.  Partnership management fees owed to the General Partner
amounting to approximately $1,629,000 and $2,170,000 were accrued and unpaid as
of December 31, 2008 and March 31, 2008, respectively and are included in due to
general partners and affiliates on the consolidated balance
sheets.  Without the General Partner’s advances and continued accrual
without payment of certain fees and expense reimbursements, the Partnership
would not be in a position to meet its obligations.





(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 up to $5,000 per year from each
subsidiary partnership.





(d)           Property
management fees incurred by the Local Partnerships amounted to $101,331 and
$90,410 and $302,597 and $317,523 for the three and nine months ended December
31, 2008 and 2007, respectively.  Of these fees, $57,253 and $82,143
and $174,736 and $177,231 were incurred to affiliates of the subsidiary
partnerships’ general partners (“Local General Partners”) for the three and nine
months ended December 31, 2008 and 2007, respectively, which includes $0 of fees
relating to discontinued operations.




- 7
-
 INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Notes to
Condensed Consolidated Financial Statements
 December
31, 2008
 (Unaudited)




B)
            Due
      to Local General Partners and
Affiliates





The
amounts due to Local General Partners and affiliates from operating liabilities
consist of the following:





December
      31,
                2008
              
              March
      31,
                2008Development
      fee payable
              
              $
              1,586,382
              
              $
              1,583,734Construction
      costs payable
              
              
              50,000
              
              
              50,000Operating
      advances
              
              
              6,000
              
              
              126,565Management
      and other fees
              
              
              63,483
              
              
              63,483$
              1,705,865
              
              $
              1,823,782








The
amounts due to Local General Partners and affiliates from discontinued
liabilities consist of the following:





December
      31,
                2008
              
              March
      31,
                2008Operating
      advances
              
              $
              120,565
              
              $
              0$
              120,565
              
              $
              0







NOTE 3 –
Fair Value Measurements





In the
first quarter of 2008, we adopted SFAS No. 157, “Fair Value Measurements”,for
financial assets and liabilities, pursuant to FSP SFAS No. 157-2.  We elected the
deferral option available for one year for non-financial assets and
liabilities.SFAS
No. 157 defines fair value, provides guidance for measuring fair value and
requires certain disclosures.  This standard does not require any new
fair value measurements, but discusses valuation techniques, such as the market
approach (comparable market prices), the income approach (present value of
future income or cash flow), and the cost approach (cost to replace the service
capacity of an asset or replacement cost).  The statement provides for
a fair value hierarchy that prioritizes the inputs to valuation techniques used
to measure fair value into three broad levels.  The following is a
brief description of those three levels:





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





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





Level
      3:
              Unobservable
      inputs that reflect our own
assumptions.





As
permitted, we chose not to elect the fair value option as prescribed by FASB
SFAS No. 159, “The Fair Value
Option for Financial Assets and Financial Liabilities” – Including an
Amendment of FASB Statement No. 115, for our financial assets and liabilities
that had not been previously carried at fair value.  Therefore, we did
not elect to fair value any additional items under SFAS No. 159.








NOTE 4 –
Sale of Property





As of
December 31, 2008, the Partnership’s limited partnership interest in one Local
Partnership and the property and the related assets and liabilities of one Local
Partnership have been 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
December 31, 2008, the Partnership sold its limited partnership interest in
BX-8A Team Associates, L.P. (“BX-8A”) to an unaffiliated third party purchaser
for a sales price of $100,000.  The Partnership received $40,000 from
this sale after the repayment of other liabilities of approximately
$60,000.  The sale will result in a gain of approximately $13,000
resulting from the write-off of the basis in the Local Partnership of
approximately $27,000 at the date of the sale and the $40,000 cash received from
the sale, which will be recognized during the quarter ended March 31,
2009.





- 8
-


INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Notes to
Condensed Consolidated Financial Statements
 December
31, 2008
 (Unaudited)





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 $2,816,891 as a distribution
from this sale after the repayment of mortgages, other liabilities and closing
costs of approximately $11,253,000.  The sale resulted in a gain of
approximately $5,032,000 resulting from the write-off of the deficit basis in
the property at the date of sale, which was recorded during the quarter ended
March 31, 2008.  An adjustment reducing the gain by approximately
$34,000 was recorded during the quarter ended June 30, 2008, resulting in an
overall gain of approximately $4,998,000.








NOTE 5 –
Discontinued Operations





The
following table summarizes the financial position of the Local Partnerships that
are classified as discontinued operations because the respective Local
Partnerships were classified as assets held for sale.  As of December
31, 2008, BX-8A was classified as a discontinued operation in the consolidated
balance sheets.  As of March 31, 2008, Westminster was classified as a
discontinued operation in the consolidated balance sheets.  The
amounts shown below, as of March 31, 2008, represent residual cash and accounts
payable balances as of the balance sheet date from the sale of
Westminster.







December
      31,
                2008
              
              March
      31,
                2008AssetsProperty
      and equipment, net of accumulated depreciation of $1,310,841 and$0,
      respectively
              
              $
              1,571,735
              
              $
              0Cash
      and cash equivalents
              
              
              4
              
              
              436,525Cash
      held in escrow
              
              
              167,900
              
              
              0Deferred
      costs (net of accumulated amortization of $63,410 and $0,
      respectively)
              
              
              58,507
              
              
              0Due
      from Local General Partners and affiliates
              
              
              0
              
              
              63,914Deferred
      costs
              
              
              1,017,966
              
              
              0Other
      assets
              
              
              153,478
              
              
              54,000Total
      assets
              
              $
              2,969,590
              
              $
              554,439LiabilitiesMortgage
      notes payable
              
              $
              1,748,651
              
              $
              216,891Accounts
      payable and other liabilities
              
              
              176,979
              
              
              18Due
      to local general partners and affiliates
              
              
              120,565
              
              
              0Due
      to general partners and affiliates
              
              
              971,650
              
              
              0Minority
      interest
              
              
              56,051
              
              
              0Total
      liabilities
              
              $
              3,073,896
              
              $
              216,909








The
following table summarizes the results of operations of the Local Partnerships
that are classified as discontinued operations.  For the three and
nine months ended December 31, 2008, BX-8A, which was sold during the nine
months ended December 31, 2008 and Westminster, which was sold during the year
ended March 31, 2008, were classified as discontinued operations on the
condensed consolidated financial statements.  For the three and nine
months ended December 31, 2008, BX-8A and Westminster, in order to present
comparable results for the three and nine months ended December 31, 2008, were
classified as discontinued operations on the condensed consolidated statement of
operations.





- 9
-


INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Notes to
Condensed Consolidated Financial Statements
 December
31, 2008
 (Unaudited)





Three
      Months Ended
                      December
      31,
                    
                    Nine
      months Ended
                      December
      31,2008
                    
                    2007*
                    
                    2008
                    
                    2007*RevenuesRental
      income
                    
                    $
                    82,155
                    
                    $
                    269,861
                    
                    $
                    243,197
                    
                    $
                    1,001,129Other
                    
                    
                    (2,832
                    )
                    
                    12,560
                    
                    
                    580
                    
                    
                    34,401Loss
      on sale of property (Note 4)
                    
                    
                    0
                    
                    
                    (121,324
                    )
                    
                    (34,242
                    )
                    
                    (121,324
                    )Total
      revenues
                    
                    
                    79,323
                    
                    
                    161,097
                    
                    
                    209,535
                    
                    
                    914,206ExpensesGeneral
      and administrative
                    
                    
                    33,105
                    
                    
                    126,893
                    
                    
                    80,082
                    
                    
                    429,018General
      and administrative-related parties
                    
                    
                    1,250
                    
                    
                    1,250
                    
                    
                    3,750
                    
                    
                    3,750Repairs
      and maintenance
                    
                    
                    46,628
                    
                    
                    46,542
                    
                    
                    57,493
                    
                    
                    142,864Operating
      and other
                    
                    
                    13,183
                    
                    
                    60,599
                    
                    
                    58,652
                    
                    
                    143,836Real
      estate taxes
                    
                    
                    0
                    
                    
                    33,232
                    
                    
                    0
                    
                    
                    61,151Insurance
                    
                    
                    (1,000
                    )
                    
                    7,824
                    
                    
                    16,000
                    
                    
                    48,614Interest
                    
                    
                    7,362
                    
                    
                    132,058
                    
                    
                    22,381
                    
                    
                    363,862Depreciation
      and amortization
                    
                    
                    27,543
                    
                    
                    29,443
                    
                    
                    85,628
                    
                    
                    196,170Total
      expenses
                    
                    
                    128,071
                    
                    
                    437,841
                    
                    
                    323,986
                    
                    
                    1,389,265Loss
      before minority interest
                    
                    
                    (48,748
                    )
                    
                    (276,744
                    )
                    
                    (114,451
                    )
                    
                    (475,059
                    )Minority
      interest in loss of subsidiaries from discontinuedoperations
                    
                    
                    482
                    
                    
                    5,274,960
                    
                    
                    786
                    
                    
                    5,275,387Net
      (loss) income from discontinued operations
                    
                    $
                    (48,266
                    )
                    $
                    4,998,216
                    
                    $
                    (113,665
                    )
                    $
                    4,800,328Net
      (loss) income – limited partners from discontinuedoperations
                    
                    $
                    (47,783
                    )
                    $
                    4,948,234
                    
                    $
                    (112,529
                    )
                    $
                    4,752,324Number
      of BACs outstanding
                    
                    
                    45,844
                    
                    
                    45,844
                    
                    
                    45,844
                    
                    
                    45,844Net
      (loss) income from discontinued operations per weighted average
      BAC
                    
                    $
                    (1.04
                    )
                    $
                    107.94
                    
                    $
                    (2.46
                    )
                    $
                    103.66








Cash
Flows from Discontinued Operations:





Nine
      Months Ended
              December
      31,2008
            
            2007*Net
      cash used in operating activities
            
            $
            (485,081
            )
            $
            (1,427,159
            )Net
      cash (used in) provided by investing activities
            
            $
            (1,284,152
            )
            $
            7,085,992Net
      cash provided by (used in) financing activities
            
            $
            1,748,651
            
            $
            (5,710,263
            )





*Reclassified
for comparative purposes.








- 10
-
 INDEPENDENCE
TAX CREDIT PLUS L.P. IV
 AND
SUBSIDIARIES
 Notes to
Condensed Consolidated Financial Statements
 December
31, 2008
 (Unaudited)





NOTE 6 –
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, 2008.





Other





The
Partnership is subject to risks incident to potential losses arising from the
management and ownership of real estate. The Partnership can also be affected by
poor economic conditions generally; however no more than 25% of the properties
are located in any single state. The properties are concentrated in New Jersey
(25%), Kentucky (17%) and California (17%). 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, 2008, 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.







- 11
-


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 (not including
acquisition fees of approximately $1,771,000) of net proceeds in fourteen Local
Partnerships of which, as of December 31, 2008, approximately $832,000 remains
to be paid to the Local Partnerships (including approximately $377,000 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, 2008, payments of approximately $22,000 were made to the Local
Partnerships.  As of December 31, 2008, the Partnership’s limited
partnership interest in one Local Partnership and the property and the related
assets and liabilities of one Local Partnership have been sold (see Item 1, Note
4).





Short-Term





The
Partnership’s primary sources of funds include:  (i) working capital
reserves, exclusive of Local Partnerships’ working capital; (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, 2008 and 2007,
distributions from operations of the Local Partnerships amounted to
approximately $20,000 and $0, respectively.  Additionally, during the
nine months ended December 31, 2008 and 2007, the Partnership received
approximately $303,000 and $2,514,000, respectively, of distributions from the
sale of Local Partnerships.





For the
nine months ended December 31, 2008, cash and cash equivalents of the
Partnership and its consolidated Local Partnerships decreased approximately
$1,170,000 due to net cash used in operating activities of approximately
$957,000, improvements to property and equipment of approximately $170,000, an
increase in due from local general partners of approximately $27,000, a decrease
in capitalization of consolidated subsidiaries attributable to minority interest
of approximately $156,000 and repayments of mortgage notes of approximately
$278,000.  Such outflows exceeded proceeds from the sale of property
of approximately $303,000, a decrease of cash held in escrow of approximately
$112,000 and net payments from local general partners and affiliates of
approximately $3,000.  Included in the adjustments to reconcile the
net loss to net cash used in operating activities is depreciation and
amortization of approximately $1,662,000 and loss on sale of property of
approximately $34,000.





Total
expenses for the three and nine months ended December 31, 2008 and 2007,
excluding depreciation and amortization, interest and general and
administrative-related parties, totaled $884,766 and $806,519 and $2,592,705 and
$2,553,760, respectively.





Accounts
payable totaled $455,503 and $434,095 as of December 31, 2008 and March 31,
2008, 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, accounts
payable from discontinued operations totaled $176,979 and $18, as of December
31, 2008 and March 31, 2008, respectively.  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 totaled $6,471,620 and $6,010,799 as of December 31, 2008 and
March 31, 2008, 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, accrued interest payable
from discontinued operations totaled $1,500 and $0, as of December 31, 2008 and
March 31, 2008, respectively.  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 refinancing 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.





A working
capital reserve at the Partnership level of approximately $464,000, exclusive of
the Local Partnership’s working capital, remained unused at December 31,
2008.  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
$1,629,000 and $2,170,000 were accrued and unpaid as of December 31, 2008 and
March 31, 2008, respectively.  Unpaid partnership management fees for
any year will be accrued without interest and will be payable only to the extent
of available funds after payments on all Partnership liabilities have been made
other than those owed to the General Partner.  Without the General
Partner’s advances and continued accrual without payment of certain fees and
expense reimbursement, the Partnership would not be in a position to meet its
obligations.





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.  However, the
Partnership’s investment in Local Partnerships may not be protected against a
general downturn in the national economy.





- 12
-




The
Partnership’s investment in Local Partnerships 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.  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.





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, 2001 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.





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, 2008, 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, 2008.





Fair Value
Measurements





In the
first quarter of 2008, we adopted SFAS No. 157, “Fair Value Measurements”,for
financial assets and liabilities, pursuant to FSP SFAS No. 157-2.  We elected the
deferral option available for one year for non-financial assets and
liabilities.SFAS
No. 157 defines fair value, provides guidance for measuring fair value and
requires certain disclosures.  This standard does not require any new
fair value measurements, but discusses valuation techniques, such as the market
approach (comparable market prices), the income approach (present value of
future income or cash flow), and the cost approach (cost to replace the service
capacity of an asset or replacement cost).  The statement provides for
a fair value hierarchy that prioritizes the inputs to valuation techniques used
to measure fair value into three broad levels.  The following is a
brief description of those three levels:





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





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





Level
      3:
              Unobservable
      inputs that reflect our own
assumptions.





As
permitted, we chose not to elect the fair value option as prescribed by FASB
SFAS No. 159, “The Fair Value
Option for Financial Assets and Financial Liabilities” – Including an
Amendment of FASB Statement No. 115, for our financial assets and liabilities
that had not been previously carried at fair value.  Therefore, we did
not elect to fair value any additional items under SFAS No. 159.





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, 2008.





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 (“SFAS”) 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, 2008, the Partnership has not
recorded any loss on impairment of assets or reductions to estimated fair
value.





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.





- 13
-




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, 2008 and
2007 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 5).





Rental
income increased approximately 4% and 3% for both the three and nine months
ended December 31, 2008, as compared to the corresponding periods in 2007,
primarily due to increases in rental rates at the Local
Partnerships.





Other
income decreased approximately $40,000 and $50,000 for the three and nine months
ended December 31, 2008 as compared to the corresponding periods in 2007,
primarily due to interest earned on a lower cash balance being invested at the
Partnership and a decrease in penalty fees, cleaning fees, late fees and early
termination fees at one Local Partnership.





Total
expenses, excluding general and administrative-related parties, repairs and
maintenance, operating and other and insurance, remained fairly consistent with
decreases of approximately 2% for the three and nine months ended December 31,
2008 as compared to the corresponding periods in 2007.





General
and administrative-related parties decreased approximately $48,000 and $59,000
for the three and nine months ended December 31, 2008 as compared to the
corresponding periods in 2007.  The three month decrease is primarily
due to an over accrual of property management fees during the second quarter of
2007, which was corrected in the third quarter of 2007 at one Local Partnership
and a decrease in partnership management fees due to the sale of property and a
decrease in expense reimbursements at the Partnership level.  The nine
month decrease is primarily due to a decrease in partnership management fees due
to the sale of property and a decrease in expense reimbursements at the
Partnership level.





Repairs
and maintenance expense increased approximately $26,000 for the three months
ended December 31, 2008 as compared to the corresponding period in 2007,
primarily due to an increase in carpet replacements and other apartment repairs
at one Local Partnership and the timing of invoices paid at a second Local
Partnership.





Operating
and other expense increased approximately $40,000 and $57,000 for the three and
nine months ended December 31, 2008 as compared to the corresponding periods in
2007, primarily due to an increase in electricity and sewer costs at one Local
Partnership, an increase in water, sewer and gas costs at a second Local
Partnership, an increase in electricity and gas costs at a third Local
Partnership, an increase in gas costs at a fourth Local Partnership and an
overall increase in utility costs at a fifth Local Partnership.





Insurance
expense decreased approximately $12,000 and $11,000 for the three and nine
months ended December 31, 2008 as compared to the corresponding periods in 2007,
primarily due to decreases in insurance premiums at three Local
Partnerships.





Item
3.  Quantitative and Qualitative Disclosures about Market
Risk





The
Partnership has mortgage notes that are payable in aggregate monthly
installments including principal and interest at rates varying from 0% to 9.11%
per annum. The Partnership does not believe there is a material risk associated
with the various interest rates associated with the mortgage notes as the
majority of the Local Partnership mortgage notes have fixed
rates.  The Partnership 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, 2008, as well as in Item 2, the fair value of
the mortgage notes payable.  There are no material changes to such
disclosure amounts as of December 31, 2008.





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





Item
4T.  Controls and Procedures





(a)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, 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.





(b)  Management’s Annual
Report on Internal Control over Financial Reporting.Our management is
responsible for establishing and maintaining adequate internal control over
financial reporting, as such term is defined in Exchange Act
Rules 13a-15(f) and 15d-15(f).  In evaluating the Partnership’s
internal control over financial reporting, management has adopted the framework
in Internal Control-Integrated Framework issued by the Committee of Sponsoring
organizations of the Treadway Commission (the “COSO
Framework”).  Under the supervision and with the participation of our
management, including the Chief Executive Officer and Chief Financial Officer of
the General Partner, the Partnership conducted an evaluation of the
effectiveness of its internal control over financial reporting as of March 31,
2008.  The Partnership’s internal control over financial reporting is
a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
reporting purposes in accordance with generally accepted accounting
principles.  Internal control over financial reporting includes those
policies and procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the Company; (2) provide reasonable assurance
that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the Company are being made only in accordance with
authorizations of management and directors of the Company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company’s assets that could have a
material effect on the financial statements.  However, because of
inherent limitations, internal control over financial reporting may not prevent
or detect misstatements.  Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.





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-




Based on
management’s evaluation under the COSO Framework, it has concluded that the
Partnership’s internal control over financial reporting, was, as of March 31,
2008, (1) effective at the Partnership level, in that they provide reasonable
assurance that information required to be disclosed by the Partnership in the
reports it files or submits under the Securities Exchange Act is recorded,
processed, summarized and reported within the time periods specified in the
SEC's rules and forms and (2) ineffective at the subsidiary level due to certain
control deficiencies noted in the audit reports for such
subsidiaries.  Management will continue to cause the Local General
Partner’s to remedy such deficiencies; however, the General Partner does not
have control over the internal controls at the subsidiary
level.  Management believes they have sufficient controls at the
Partnership level to mitigate these deficiencies, and such deficiencies do not
have a material impact on the consolidated financial statements.





The
Partnership’s Annual Report on Form 10-K did not include an attestation report
of the Partnership’s registered public accounting firm regarding internal
control over financial reporting. The Partnership’s internal control over
financial reporting was not subject to attestation by the Partnership’s
registered public accounting firm pursuant to temporary rules of the Securities
and Exchange Commission that permit the Partnership to provide only this
report.





(c)  Changes in Internal Controls over Financial
Reporting.Except as noted in (b) above, during the period
ended December 31, 2008, there were no changes in the Partnership’s internal
control over financial reporting that have materially affected, or are
reasonably likely to materially affect, the Partnership’s internal control over
financial reporting.





- 15
-


PART II.
OTHER INFORMATION











Item
      1.
            Legal
      Proceedings – NoneItem
      1A.
            Risk
      Factors – No changesItem
      2.
            Unregistered
      Sales of Equity Securities and Use of Proceeds – NoneItem
      3.
            Defaults
      upon Senior Securities - NoneItem
      4.
            Submission
      of Matters to a Vote of Security Holders – NoneItem
      5.
            Other
      Information – NoneItem
      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.








- 16
-




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 PartnerDate:
            February 9, 2009
            
            
            
            By:
            /s/ Robert L. LevyRobert
      L. LevyChief
      Financial Officer, Principal Accounting Officer and
    DirectorDate:
            February 9, 2009
            
            
            
            By:
            /s/ Andrew J. WeilAndrew
      J. WeilPresident
      and Chief Executive Officer