Internal Revenue Service

Low-Income Housing Tax Credit: IRS Audit Techniques Guide Internal Revenue Service

This audit techniques guide has been developed to offer the examiner technical support for identifying and developing issues related to IRC section 42 in this area of tax law. The guide consists of chapters covering specific LIHC topics and issues. The chapters are arranged topically, with the various elements of the LIHC being introduced and discussed in the order in which they are generally encountered during the development of a project -- a building block format of terms and mechanics. Exhibits, as applicable, are also included at the end of each chapter. In an effort to provide the examiner with valuable examination tools, several "Pro Forma" documents have been drafted for use specifically in IRC section 42 cases. These include an Information Document Request, Initial Interview Questionnaire, and Revenue Agent Report. These documents appear at the end of the guide.