The Treasury Inspector General for Tax Administration (TIGTA) recently released a report on IRS oversight of the LIHTC program calling for improvements. The report raises concerns with data reliability, reconciliation discrepancies and missing first-year elections that increase the risk of undetected errors and noncompliance.
TIGTA made seven recommendations to IRS for improvement, with which IRS agreed on five. IRS also stated that, while the service recognizes its responsibility to review LIHTC agency credit allocation practices and compliance monitoring processes, it does not plan to commit additional resources to these reviews due to competing resource needs. The report was conducted at the request of former Senate Budget Committee Chairman Michael Enzi (R-WY)—who has since retired from Congress—as part of his request for an evaluation of the economy, efficiency and effectiveness of federal housing assistance programs broadly.