How State Housing Agency Violations Differ from IRS Violations

If you violate the federal tax credit law and don’t promptly correct the noncompliance, the owner may lose tax credits. Item 11 on IRS Form 8823 (Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition), which is the form the state housing agency uses to report noncompliance to the IRS, lists the main ways you can violate the tax credit law. These federal violations are sometimes called IRS violations.