[Federal Register Volume 70, Number 214 (Monday, November 7, 2005)]
[Rules and Regulations]
[Pages 67355-67356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-21784]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9228]
RIN 1545-BE50


Low-Income Housing Credit Allocation and Certification; Revisions

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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SUMMARY: This document contains regulations that reduce the burden for 
taxpayers filing Form 8609, ``Low-Income Housing Credit Allocation and 
Certification.'' The regulations affect owners of low-income housing 
projects who claim the low-income housing credit.

DATES: Effective Date: These regulations are effective November 7, 
2005.
    Date of Applicability: For date of applicability, see Sec.  1.42-
1(j).

FOR FURTHER INFORMATION CONTACT: Paul F. Handleman, (202) 622-3040 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    On January 27, 2004, the Treasury Department and IRS published 
Treasury Decision 9112 in the Federal Register (69 FR 3826), which 
removed impediments to the electronic filing of Form 8609, ``Low-Income 
Housing Credit Allocation and Certification,'' by revising former Sec.  
1.42-1T(e)(1) and (h)(2) and adding Sec.  1.42-1(h). Former Sec.  1.42-
1T(e)(1) and (h)(2) required an owner to include a third-party 
signature from an authorized State or local housing credit agency 
(Agency) official when filing the form with the owner's Federal income 
tax return for each year of the 15-year compliance period. Section 
1.42-1(h) contains the filing requirement for Form 8609 and no longer 
requires the third-party signature when filing the form with the 
owner's Federal income tax return.

Explanation of Provisions

    Section 42 provides for a low-income housing credit that may be 
claimed as part of the general business credit under section 38. In 
general, the credit is allowable only if the owner of a qualified low-
income building receives a housing credit allocation from an Agency of 
the jurisdiction where the building is located.
    Section 1.42-1(h) provides that a completed Form 8586, ``Low-Income 
Housing Credit,'' must be filed with the owner's Federal income tax 
return for each taxable year the owner of a qualified low-income 
building is claiming the low-income housing credit under section 42(a). 
A completed Form 8609 must be filed with the owner's Federal income tax 
return for each of the 15 taxable years of the compliance period. 
Failure to comply with the requirement of the preceding sentence for 
any taxable year after the first taxable year in the credit period will 
be treated as a mathematical or clerical error for purposes of section 
6213(b)(1) and (g)(2).
    The IRS plans to reduce taxpayer burden by allowing taxpayers to 
file Form 8609 one time, instead of filing the form with the same 
information for 15 consecutive years. Taxpayers currently file the form 
as part of their return with the Internal Revenue Service center that 
processes their return. Planned revisions to the form should improve 
administration of the low-income housing credit program by requiring 
taxpayers to send completed forms to the Philadelphia service center, 
where each Agency currently sends Part I of the form. The requirements 
for completing and filing Form 8609 will be addressed in the 
instructions to the form.

Special Analyses

    It has been determined that this Treasury decision is not a 
significant regulatory action as defined in Executive Order 12866. 
Therefore, a regulatory assessment is not required. It also has been 
determined that section 553(b) and (d) of the Administrative Procedure 
Act (5 U.S.C. chapter 5) does not apply to these regulations. Because 
no notice of proposed rulemaking is required, the Regulatory 
Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to 
section 7805(f) of the Internal Revenue Code, these regulations were 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on their impact on small business.

Drafting Information

    The principal author of these regulations is Paul F. Handleman, 
Office of the Associate Chief Counsel (Passthroughs and Special 
Industries),

[[Page 67356]]

IRS. However, other personnel from the IRS and Treasury Department 
participated in their development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Adoption of Amendments to the Regulations

0
Accordingly, 26 CFR part 1 is amended as follows:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read, in 
part, as follows:

    Authority: 26 U.S.C. 7805 * * *

0
Par. 2. Section 1.42-1 is amended by revising paragraphs (h) and (j) to 
read as follows:


Sec.  1.42-1  Limitation on low-income housing credit allowed with 
respect to qualified low-income buildings receiving housing credit 
allocations from a State or local housing credit agency.

* * * * *
    (h) Filing of forms. Unless otherwise provided in forms or 
instructions, a completed Form 8586, ``Low-Income Housing Credit,'' (or 
any successor form) must be filed with the owner's Federal income tax 
return for each taxable year the owner of a qualified low-income 
building is claiming the low-income housing credit under section 42(a). 
Unless otherwise provided in forms or instructions, a completed Form 
8609, ``Low-Income Housing Credit Allocation and Certification,'' (or 
any successor form) must be filed by the building owner with the IRS. 
The requirements for completing and filing Forms 8586 and 8609 are 
addressed in the instructions to the forms.
* * * * *
    (j) Effective dates. Section 1.42-1(h) applies to forms filed on or 
after November 7, 2005. The rules that apply for forms filed before 
November 7, 2005 are contained in Sec.  1.42-1T(h) and Sec.  1.42-1(h) 
(see 26 CFR part 1 revised as of April 1, 2003, and April 1, 2005).

    Approved: October 26, 2005.
Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
Eric Solomon,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 05-21784 Filed 11-4-05; 8:45 am]
BILLING CODE 4830-01-P