IRS Issues Memo on Eligible Basis Reduction Due to Common Area Noncompliance

The IRS Office of Chief Counsel recently issued a memorandum addressing noncompliance of common areas in LIHTC sites. The memo was issued in response to a clarification request by an IRS Program Manager for Technical Issues. The memo states that its advice may not be used or cited as precedent, but it illuminates how the IRS will approach noncompliance of a common area.