Treasury: Oversight of Low-Income Housing Tax Credit Program Can Be Improved (IRC §42)

The IRS should and can address significant issues with forms submitted for the Low-Income Housing Tax Credit program, the Treasury Inspector General for Tax Administration said in an audit report released Feb. 1, listing such issues as data reliability, reconciliation discrepancies, and missing first-year elections that increased the risk of undetected errors and noncompliance. Approximately 67,000 LIHTC claims for Tax Years 2015 through 2019 totaling almost $15.6 billion lacked or did not match supporting documentation due to potential reporting errors or noncompliance, and for Calendar Years 2003 through 2019 the IRS conducted compliance monitoring reviews for only eight (none done ...