IRS/Tax Issues


IRS Sets 2023 PAB, LIHTC Per-Capita Multiplier and Small-State Minimums; Allocates $5.4 Million to Unused Pool

IRS Revenue Procedure 2022-38 sets the per-capita multiplier for nine percent LIHTCs ($2.75) and the small state minimum ($3,185,000), as well as the private bond multiplier ($120) and the small state minimum ($358,845,000).


IRS Extends Placed-in-Service, Other LIHTC Deadlines

The IRS also issued Notice 2022-52, which extends placed-in-service (PIS) deadlines by one year for allocations starting in 2019.


IRS Issues Average Income Test Final Regulations

The Internal Revenue Service (IRS) and the U.S. Department of the Treasury issued new final regulations on the average income test (AIT).


Bipartisan Group of Lawmakers Call for Expedited Final Rule on Income Averaging

Last week, a bipartisan group of lawmakers sent a letter to the Department of Treasury and Internal Revenue Service urging the expedited release of a final rule on income averaging under the LIHTC program.


IRS Seeks Comments on Priority Guidance Plan 

The Internal Revenue Service (IRS) published Notice 2022-21, inviting public comment on recommendations for items that should be included in their 2022-2023 Priority Guidance Plan. 


IRS Permanently Allows Virtual Bond, QAP Hearings

In Revenue Procedure 2022-20, the Internal Revenue Service provides permanent authority to conduct telephonic public hearings for tax-exempt private activity bonds and QAPs.


IRS Publishes 2022 Population Figures

The Internal Revenue Service published Internal Revenue Bulletin No. 2022-12, which contains calendar year 2022 resident population figures to calculate state allocations of the nine percent LIHTC and private activity bond cap.


Treasury IG Report Concludes IRS Oversight of Housing Credit Program Can Be Improved

The Treasury Inspector General for Tax Administration (TIGTA) recently released a report on IRS oversight of the LIHTC program calling for improvements.


IRS Sets Threshold for Four Percent Floor Eligibility

Last week, the Internal Revenue Service published Revenue Ruling 2021-20, which limits the LIHTC buildings that are eligible for the fixed four percent floor.


IRS Publishes 2022 LIHTC, PAB Caps

The Internal Revenue Service released Revenue Procedure 2021-45, which sets state ceilings for nine percent LIHTCs and private activity bonds (PAB).


IRS Extends Virtual Public Hearing Option for Tax-Exempt Bonds Through March 31, 2022

The Internal Revenue Service (IRS) issued Rev. Proc. 2021-39, which extends the ability of bond issuers to conduct hearings virtually through March 31, 2022 due to COVID-19.


NCSHA Urges IRS and Treasury to Extend Housing Credit COVID-19 Relief

NCSHA sent the Internal Revenue Service and U.S. Department of the Treasury a letter urging them to extend certain temporary Housing Credit relief provisions in light of the COVID-19 pandemic’s continuing disruption of development and construction activities and the ongoing operation of Housing Credit properties.

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