Form 8610 (2020)

What Is a Form 8610

Form 8610, or the Annual Low-Income Housing Credit Agencies Report, is a vital tax document utilized by state housing credit agencies that allocate low-income housing tax credits. As a necessary aspect of compliance for the Low-Income Housing Tax Credit (LIHTC) program, this form ensures the allocated credits are accurately reported and assists in monitoring the program's overall integrity.

When to Use IRS Form 8610

State housing credit agencies must use this form in the following situations:

• To report the annual dollar amount of low-income housing credits allocated to each building.
• If there's a need to carry over an unused credit to the succeeding year.
• To document the dispositions of buildings or interests therein for which credits have been claimed.
• When it's necessary to reconcile the yearly ceiling with aggregate credits allocated.
• To validate compliance with the set-aside requirement for projects financed with tax-exempt bonds subject to the volume cap.
• Agencies must be attentive to these criteria to maintain program adherence and avoid potential auditing issues.

How To Fill Out Form 8610 Instructions

Step 1: Gather Information: 

Before filling out Form 8610, gather all necessary information regarding the low-income housing projects. 

This includes:

• The total amount of credits allocated.
• Details about the project owners.
• Identification of the projects that have received allocations.

Step 2: Fill Out Basic Information: 

At the top of Form 8610, enter the name of the state housing credit agency and its Employer Identification Number (EIN).

Step 3: Complete Part I – Credit Allocation Information: 

In Part I, you'll detail the annual credit allocations.

For Line 1, enter "5" for the total projects receiving allocations.

On Lines 2a through 2e, input the respective tax credits allocated for each project.

Add those amounts and record the total on Line 2f.

Step 4: Fill Out Part II – Housing Credit Agencies only:

This section reports returned or reclaimed credits and credits from the national pool.

If there are any returned or reclaimed credits, record the details on Lines 3 through 4.

If you received additional credits from the national pool, include them on Lines 5 and 6.

Step 5: Complete Part III – Housing Credit Agencies WITH National Pool Allocations or Ceilings: 

For agencies that received allocations from the national pool, report the additional ceiling amounts in this part.

Enter the figures on Lines 7 through 9, as appropriate, based on your agency's specific circumstances.

Step 6: Sign the Form: 

Once you have reviewed the form for accuracy, the authorized official of the housing credit agency should sign and date the form.

When to File Form 8610

The deadline for filing Form 8610 is a crucial date that housing credit agencies cannot overlook. Submitting the form accurately and on time is a testament to the agency's due diligence in complying with federal tax regulations. The annual submission deadline falls on February 28 of the year following the calendar year for which the form is being filed. Delays or inaccuracies could affect the agency's standing and credibility with project developers and the Internal Revenue Service. It's a pivotal piece of the tax compliance puzzle that must fit perfectly into the broader picture of affordable housing finance and regulation.