H S S , P . C .

Please Wait For Loading

1390 Piccard Dr #325, Rockville, MD 20850 (240) 499-3600 mycpa@hsscpa.com

Electronic Filing Now Required for Requesting Unused Low-Income Housing Credit Carryover

July 10, 2020 Priya Comments Off

The IRS has released guidance to qualified states regarding how to request an allocation of unused housing credit carryover under Code Sec. 42(h)(3)(D)(iii). The new guidance requires allocation requests to be made electronically.

Allocation Procedure

The procedure requires allocation requests for unused housing credit carryover to be made electronically. The allocation of credits to qualified states is to be made from a national pool of unused credit authority, the National Pool, consisting of all of the unused housing credit carryovers assigned to the Secretary of the Treasury.

Request Procedure

Only the filing agency of a qualified state may request, on behalf of that state, to receive an allocation of credit from the National Pool. The filing agency must attach a portable document format (pdf) copy of the request to an email that the filing agency sends to CC.PSI.Stakeholder@irscounsel.treas.gov, by May 1 of the calendar year in which the allocation is requested. Moreover, the pdf copy of the request attached to the email must briefly explain that a request for allocation of credit from the National Pool is being made under Code Sec. 42(h)(3)(D) and must be signed by an authorized official of the filing agency. Additionally, a pdf copy of the state’s Form 8610, Annual Low-Income Housing Credit Agencies Report, or most recently amended Form 8610 for the preceding calendar year must also be attached to the email.

If there are any requests for allocations of credit from the National Pool, the IRS will publish in the Internal Revenue Bulletin, the amounts of unused housing credit carryovers assigned to qualified states from the National Pool for that calendar year.

The electronic filing requirement is effective beginning with assignments of 2019 calendar year unused housing credit carryovers to the National Pool and 2020 calendar year requests on behalf of qualified states for allocations of credit from the National Pool.

Rev. Proc. 92-31, 1992-1 C.B. 775 is modified and superseded.