Form 8823 is the Internal Revenue Service (IRS) report that a housing credit agency files when a low-income housing building is disposed of or falls out of compliance with the low-income housing credit provisions of section 42. A separate form is filed for each building. On this page you can fill out the form online on FillingPDF and download or print the completed PDF; the official PDF and the latest information are published by the IRS at www.irs.gov/Form8823.
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What is 8823?
Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition, is the IRS form that housing credit agencies use to tell the IRS that a low-income housing building has been disposed of or is not in compliance with the low-income housing tax credit provisions.
Agencies use it as part of their compliance monitoring responsibilities under section 42(m)(1)(B)(iii). The agency should also give a copy of the form to the building owner(s). The form is issued under OMB No. 1545-1204 and carries the printed revision Rev. June 2023.
One form covers one building. It identifies the building by its building identification number (BIN) as shown on Form 8609, names the owner, and reports the unit counts, the date the building ceased to comply, the date any noncompliance was corrected, and the type of noncompliance on lines 11a through 11q. For a disposition, line 13 records whether the building was sold, foreclosed, destroyed or otherwise disposed of, the date, and the new owner.
The same form also serves two other purposes: a box at the top marks an amended return that corrects previously reported information, and line 10 marks a filing made only to show that a previously reported noncompliance problem has been corrected.
Who needs to file 8823?
Any authorized housing credit agency that becomes aware that a low-income housing building was disposed of, or is not in compliance with the provisions of section 42, must file Form 8823. It is an agency report, not an owner's return.
- The agency files one Form 8823 for each building that is disposed of or goes out of compliance.
- An agency that is correcting information it already reported checks the amended-return box at the top of page 1.
- An agency that is only reporting that a previously reported noncompliance problem has been corrected checks the box on line 10.
- If a building has more than one owner (other than as a member of a pass-through entity), the agency attaches a schedule listing the owners, their addresses and their taxpayer identification numbers.
The form is signed by an authorizing official of the agency under penalties of perjury. The instructions do not address building owners filing it themselves; the agency also gives the owner(s) a copy.
When to file 8823
File Form 8823 no later than 45 days after either (a) the building was disposed of, or (b) the end of the time allowed the building owner to correct the condition(s) that caused the noncompliance. The IRS instructions refer to Regulations section 1.42-5(e) for details.
Correction status changes which boxes you check. If the issue is still uncorrected at the end of the correction period, check only the "Out of compliance" box on lines 11a through 11p. If it was corrected within the correction period, check both "Out of compliance" and "Noncompliance corrected." If the noncompliance was already reported on a separate Form 8823, check only "Noncompliance corrected."
The form sets no separate processing time.
Documents you need
- A written explanation for lines 11c, 11h, 11o, 11p and 11q when you check them, and for line 13a when you check Other.
- For line 11c: a statement describing either the deficiency and its severity under the UPCS (minor level 1, major level 2, severe level 3) or the health, safety or building violation under the local codes.
- A written explanation for line 12 when you check the box for additional information on any line above.
- A schedule listing owners, their addresses and taxpayer identification numbers, indicating EIN or SSN for each, when there is more than one owner (other than as a member of a pass-through entity).
- For line 11k: a copy of the agency's written notification letter to the owner that an extended use agreement is not recorded as a restrictive covenant under state law.
How to fill out 8823
Mark amended return if correcting
If you are correcting previously reported information, check the amended return box at the top of page 1. Remember to file a separate Form 8823 for each building.
Enter the building and BIN
On line 1, enter the building name (if any) and street address, and check the box if line 1 differs from Form 8609. On line 2, enter the building identification number (BIN) assigned by the housing credit agency as shown on Form 8609.
Enter the owner and taxpayer ID
On line 3, enter the owner's name and address, checking the box if it differs from Form 8609. On line 4, enter the owner's taxpayer identification number and mark EIN or SSN; attach a schedule if there is more than one owner.
Enter credit and project size
On line 5, enter the total credit allocated to this BIN. On line 6, enter the number of buildings in the project if this building is part of a multiple building project.
Enter the unit counts
On lines 7a through 7d, enter the total residential units, low-income units, units with noncompliance issues, and units reviewed by the agency. Line 7c should be -0- if the only line 11c issue found by physical inspection relates to a common area.
Enter the compliance dates
On line 8, enter the date the building ceased to comply in MMDDYYYY format, using the earliest date if there are several issues. On line 9, enter the date the noncompliance was corrected, using the last correction date if there are several.
Check line 10 only for correction filings
Check the line 10 box only if you are filing solely to show that a previously reported noncompliance problem has been corrected.
Check the noncompliance boxes
On lines 11a through 11q, check the box or boxes that apply, marking "Out of compliance," "Noncompliance corrected," or both according to the instructions. Attach the explanation required for lines 11c, 11h, 11o, 11p and 11q.
Add information on line 12
If any line above needs more information, attach an explanation and check the box on line 12.
Complete the disposition section
For a building disposition, skip lines 8 through 12 and complete line 13: check Sale, Foreclosure, Destruction or Other (attach an explanation), enter the date in MMDDYYYY format, and enter the new owner's name and taxpayer identification number.
Enter the agency contact
On lines 14 and 15, enter the name and telephone number (with extension, if any) of the agency's contact person.
Review, sign and download the PDF
Have the authorizing official sign, print their name and title, and enter the date in MMDDYYYY format under the penalties of perjury statement. Review every line, then download or print the completed PDF from FillingPDF and assemble the attachments described under How to submit.
How to submit 8823
Form 8823 is filed on paper with the IRS at one address given in the instructions. The instructions name no other channel.
- By mail: Department of the Treasury, Internal Revenue Service Center, Philadelphia, PA 19255-0549.
Include any explanations, statements or schedules the lines you completed call for (see the list of attachments). The housing credit agency should also give a copy of the form to the owner(s).
Do not send the form to the IRS Tax Forms and Publications Division address in Washington, DC, that appears in the Paperwork Reduction Act notice; that address is only for comments on the form. FillingPDF lets you fill out and download the PDF; submission follows the channel above.
Common mistakes to avoid
- Filing one Form 8823 for several buildings; the form says to file a separate one for each building disposed of or out of compliance.
- Completing line 8 for a building disposition; the instructions say to skip lines 8 through 12 and complete line 13 instead.
- Entering the latest discovery date on line 8 when there are multiple noncompliance issues; enter the date of the earliest discovered issue.
- Checking line 10 when the form also reports new noncompliance; check it only when the sole reason for filing is to show correction of a previously reported problem.
- Checking both "Out of compliance" and "Noncompliance corrected" for an issue reported earlier on a separate Form 8823; check only "Noncompliance corrected."
- Using local codes and the UPCS in combination on line 11c; use one or the other to inspect the project.
- Checking line 11c, 11h, 11o, 11p or 11q without attaching the required explanation.
- Mailing the form to the Washington, DC, address printed in the Paperwork Reduction Act notice instead of the Philadelphia address under Where To File.
- Filing later than 45 days after the disposition or the end of the owner's correction period.
Frequently asked questions
What is Form 8823 used for?
Form 8823 is the report a housing credit agency files with the IRS to notify it of a low-income housing building's disposition or noncompliance with the section 42 low-income housing credit provisions. It is filed under the agency's compliance monitoring duties, one form for each building.
Who has to file Form 8823?
Any authorized housing credit agency that becomes aware that a low-income housing building was disposed of or is not in compliance with section 42 must file it. The agency should also give a copy to the building owner(s). The form is signed by an authorizing official of the agency.
When is Form 8823 due?
No later than 45 days after the building was disposed of, or after the end of the time allowed the owner to correct the condition that caused the noncompliance. The IRS instructions point to Regulations section 1.42-5(e) for details.
Where do I mail Form 8823?
Mail it to the Department of the Treasury, Internal Revenue Service Center, Philadelphia, PA 19255-0549. Do not use the Washington, DC, Tax Forms and Publications Division address in the instructions; it is only for comments on the form.
Do I file one Form 8823 for each building?
Yes. The form says to file a separate Form 8823 for each building that is disposed of or goes out of compliance. Line 6 only records how many buildings are in the project when the building is part of a multiple building project.
How do I report that noncompliance was corrected?
If the noncompliance was reported earlier on a separate Form 8823, check only "Noncompliance corrected" on the relevant line and check the line 10 box if correction is the sole reason for filing. Enter the correction date on line 9.
What do I fill in for a building sale or foreclosure?
Skip lines 8 through 12 and complete line 13: check Sale, Foreclosure, Destruction or Other, enter the date of disposition, and give the new owner's name and taxpayer identification number. Do not complete line 8 for a disposition.
Can I fill out Form 8823 online on FillingPDF?
Yes, you can fill out the PDF online on FillingPDF and download or print it. FillingPDF is an independent service and does not file the form with the IRS; the agency mails it to the address in the instructions.
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