How to Keep Track of Over-Income Households to Comply with NAU Rule
Sometimes a household's income rises above tax credit program limits. When this happens, you have to comply with an IRS rule known as the “next available unit” (NAU) rule. But many managers fail to comply with this key rule. And that can have costly consequences. If the appropriate NAU isn't rented to a qualified, low-income household, the IRS may take back credits that the owner has already claimed and bar the owner from taking credits in the future.