The IRS released a final rule, a revenue procedure, and a notice that are related to the operation, oversight, and reporting for the Section 42/LIHTC program.
First, IRS published its final rule for Section 42 Qualified Contract Provisions. The final rule provides guidance concerning taxpayers’ (i.e. owners’) requests to housing credit agencies to obtain a qualified contract (as defined in section 42(h)(6)(F) of the Internal Revenue Code) for the acquisition of a low-income housing credit building. The regulations will affect owners requesting a qualified contract, potential buyers, and low-income housing credit agencies responsible for the administration of the low-income housing credit program. The final rule is effective today, May 3, 2012.
A copy of the final rule may be found here: http://www.gpo.gov/fdsys/pkg/FR-2012-05-03/pdf/2012-10638.pdf
Second, IRS has issued Revenue Procedure (RP) 2012-27. The RP provides the manner under § 42(j)(6)(B)(i) of the Internal Revenue Code by which a taxpayer may notify the Internal Revenue Service of any increase in tax resulting from a reduction in the qualified basis of a low-income housing tax credit building in order to begin the 3-year statutory period for assessing a deficiency with respect to that taxpayer.
A copy of RP 2012-27 may be found here: http://www.irs.gov/pub/irs-drop/rp-12-27.pdf
Finally, the IRS has released Notice 2012-34. The notice delays the proposed effective dates for reporting for debt instruments and options by brokers and others from January 1, 2013, to January 1, 2014.
A copy of Notice 2012-34 may be found here: http://www.irs.gov/pub/irs-drop/n-12-34.pdf