IRS Form 8703 "Annual Certification of a Residential Rental Project"

What Is IRS Form 8703?

This is a tax form that was released by the Internal Revenue Service (IRS) - a subdivision of the U.S. Department of the Treasury on September 1, 2013. As of today, no separate filing guidelines for the form are provided by the IRS.

Form Details:

  • A 4-page form available for download in PDF;
  • Actual and valid for filing 2020 taxes;
  • Additional instructions and information can be found on page 3 of the document;
  • Editable, printable, and free;
  • Fill out the form in our online filing application.

Download a fillable version of IRS Form 8703 through the link below or browse more documents in our library of IRS Forms.

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Download IRS Form 8703 "Annual Certification of a Residential Rental Project"

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8703
Annual Certification of a Residential Rental Project
Form
(Complete a separate Form 8703 for each project.)
OMB No. 1545-1038
(Rev. September 2013)
For calendar year
Department of the Treasury
Information about Form 8703 and its instructions is at www.irs.gov/form8703.
Internal Revenue Service
Check if Amended Return
Part I
General Information
Operator of project
Taxpayer identification number of operator
Street address, city or town, state or province, country, ZIP or foreign postal code
Owner of project
Taxpayer identification number of owner
Street address, city or town, state or province, country, ZIP or foreign postal code
Address of building/project (Do not use P.O. box.)
Report number (For IRS Use Only)
1
Check the box for the test elected for the project:
a
20-50 test
b
40-60 test
c
25-60 test (NYC only)
d
e
20-60 test
40-70 test
(GO Zone, Midwestern disaster areas,
(GO Zone, Midwestern disaster areas,
and Hurricane Ike disaster areas only)
and Hurricane Ike disaster areas only)
/
/
2
Date (MM/DD/YYYY) the qualified project period began .
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3a Was a low-income housing credit allocation issued by a housing credit agency for this project?
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Yes
No
b If “Yes,” enter the building identification number (BIN) assigned to the building by the housing credit
agency (see instructions) .
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Check “Yes” if during the year reported on this form, there were no residential units in the project that were
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occupied by a new resident whose income exceeds the applicable income limit. If otherwise, check “No.”
Yes
No
If “Yes,” complete lines 5, 11, 12, and 13 in Part II, and skip lines 6 through 10.
Part II
Annual Determinations
5
Total number of residential rental units in project .
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5
6
Number of units actually occupied by individuals whose income does not exceed the applicable
income limit (see instructions) .
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6
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Number of units occupied by continuing residents whose income is treated as not exceeding
the applicable income limit (see instructions) .
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8
8
Total number of low-income units in project (add lines 6 and 7) .
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9
Divide line 8 by line 5 and enter the percentage (If the line 9 percentage is less than the
percentage for the test elected in Part I, item 1 (i.e., 20%, 40%, or 25%), see instructions.) .
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9
%
10
Deep-rent skewed project election (see instructions):
a Number of 40%-and-under low-income units .
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10a
b Divide line 10a by line 8 and enter the percentage
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10b
%
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11
Number of low-income units vacated during the calendar year
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12
Number of low-income units vacated during the calendar year and occupied by new residents
who were low-income residents at the time of occupancy .
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13
Number of low-income units that were vacated but were held available for low-income residents
as of the end of the calendar year .
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8703
For Privacy Act and Paperwork Reduction Act Notice, see back of form.
Form
(Rev. 9-2013)
Cat. No. 64650C
8703
Annual Certification of a Residential Rental Project
Form
(Complete a separate Form 8703 for each project.)
OMB No. 1545-1038
(Rev. September 2013)
For calendar year
Department of the Treasury
Information about Form 8703 and its instructions is at www.irs.gov/form8703.
Internal Revenue Service
Check if Amended Return
Part I
General Information
Operator of project
Taxpayer identification number of operator
Street address, city or town, state or province, country, ZIP or foreign postal code
Owner of project
Taxpayer identification number of owner
Street address, city or town, state or province, country, ZIP or foreign postal code
Address of building/project (Do not use P.O. box.)
Report number (For IRS Use Only)
1
Check the box for the test elected for the project:
a
20-50 test
b
40-60 test
c
25-60 test (NYC only)
d
e
20-60 test
40-70 test
(GO Zone, Midwestern disaster areas,
(GO Zone, Midwestern disaster areas,
and Hurricane Ike disaster areas only)
and Hurricane Ike disaster areas only)
/
/
2
Date (MM/DD/YYYY) the qualified project period began .
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3a Was a low-income housing credit allocation issued by a housing credit agency for this project?
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Yes
No
b If “Yes,” enter the building identification number (BIN) assigned to the building by the housing credit
agency (see instructions) .
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Check “Yes” if during the year reported on this form, there were no residential units in the project that were
4
occupied by a new resident whose income exceeds the applicable income limit. If otherwise, check “No.”
Yes
No
If “Yes,” complete lines 5, 11, 12, and 13 in Part II, and skip lines 6 through 10.
Part II
Annual Determinations
5
Total number of residential rental units in project .
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5
6
Number of units actually occupied by individuals whose income does not exceed the applicable
income limit (see instructions) .
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6
7
Number of units occupied by continuing residents whose income is treated as not exceeding
the applicable income limit (see instructions) .
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8
8
Total number of low-income units in project (add lines 6 and 7) .
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9
Divide line 8 by line 5 and enter the percentage (If the line 9 percentage is less than the
percentage for the test elected in Part I, item 1 (i.e., 20%, 40%, or 25%), see instructions.) .
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9
%
10
Deep-rent skewed project election (see instructions):
a Number of 40%-and-under low-income units .
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10a
b Divide line 10a by line 8 and enter the percentage
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10b
%
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11
Number of low-income units vacated during the calendar year
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12
Number of low-income units vacated during the calendar year and occupied by new residents
who were low-income residents at the time of occupancy .
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12
13
Number of low-income units that were vacated but were held available for low-income residents
as of the end of the calendar year .
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8703
For Privacy Act and Paperwork Reduction Act Notice, see back of form.
Form
(Rev. 9-2013)
Cat. No. 64650C
2
Form 8703 (Rev. 9-2013)
Page
Part III
Issuer and Description of Bonds (see instructions)
14
Name of issuer
Issuer's EIN
15
16
Name of bond issue
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17
Date of bond issue
18
CUSIP number
19
Issue price
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Final maturity date
20
Part IV
Certification (see instructions)
Under penalties of perjury, I certify that the above project (check one) continues to meet
does not meet
the requirements of
subsection 142(d) of the Internal Revenue Code and that I have examined this form, and to the best of my knowledge and belief, the
Sign
information is true, correct, and complete.
Here
Type or print name and title
Signature of Project Operator
Date
Print/Type preparer’s name
Preparer's signature
Date
PTIN
Paid
Check
if
self-employed
Preparer
Firm’s name
Use Only
Firm's EIN
Phone no.
Firm's address
8703
Form
(Rev. 9-2013)
3
Form 8703 (Rev. 9-2013)
Page
Future Developments
Part II—Annual Determinations
The amended return must provide all the
information reported on the original return, in
The IRS has created a page on IRS.gov for
Line 5. Enter the total number of residential
addition to the new or corrected information.
information about Form 8703 and its
rental units in the project.
Attach an explanation of the reason for the
instructions, at www.irs.gov/form8703.
Line 6. Enter the number of residential rental
amended return.
Information about any future developments
units occupied by individuals whose income
Report number. This line is for IRS use only.
affecting Form 8703 (such as legislation enacted
is:
Do not make an entry.
after we release it) will be posted on that page.
(a) 50% or less of the area median gross
Line 1. To be a qualified residential rental
income (if box 1a was checked),
General Instructions
project, one of the following tests must have
(b) 60% or less of the area median gross
been elected for the project:
Section references are to the Internal Revenue
income (if box 1b, 1c, or 1d was checked),
(a) 20-50 test. 20% or more of the residential
Code unless otherwise noted.
or
units must be occupied by individuals whose
(c) 70% or less of the area median gross
Purpose of form. Form 8703 is used by an
income is 50% or less of the area median
income (if box 1e was checked).
operator of a residential rental project to
gross income.
provide annual information the IRS will use to
Do not include any units included on line 7.
(b) 40-60 test. 40% or more of the residential
determine whether a project continues to be a
Line 7. Enter the number of residential rental
units must be occupied by individuals whose
qualified residential rental project under
units occupied by continuing residents whose
income is 60% or less of the area median
section 142(d). If so, and certain other
income exceeds the applicable income limit
gross income.
requirements are met, bonds issued in
but whose income is treated as not exceeding
connection with the project are considered
(c) 25-60 test (NYC only). 25% or more of the
the applicable income limit. Do not include
“exempt facility bonds” and the interest paid
residential units must be occupied by
any units included on line 6. See section
on them is not taxable to the recipient.
individuals whose income is 60% or less of the
142(d)(3)(B).
area median gross income.
Who must file. The operator of a residential
Line 9. If line 9 is less than the percentage for
rental project for which an election was made
(d) 20-60 test (Gulf Opportunity (GO) Zone,
the test elected in item 1, Part I (i.e., 20%,
under section 142(d) must file Form 8703
Midwestern disaster areas, and Hurricane
40%, or 25%), the project is considered in
annually. A separate Form 8703 must be filed
Ike disaster areas only). 20% or more of the
post-issuance noncompliance. In this case,
for each project.
residential units must be occupied by
check the box in Part IV to certify that the
individuals whose income is 60% or less of the
When to file. File Form 8703 by March 31
project “does not meet” the requirements of
area median gross income.
after the close of the calendar year for which
section 142(d).
the certification is made. Form 8703 must be
(e) 40-70 test (GO Zone, Midwestern disaster
In general, unless the noncompliance is
filed annually during the qualified project
areas, and Hurricane Ike disaster areas
corrected within a reasonable period, the
period. See the instructions for line 2 for the
only). 40% or more of the residential units must
noncompliance will cause the exempt facility
definition of “qualified project period.”
be occupied by individuals whose income is
bonds for the project to not be qualified
70% or less of the area median gross income.
Where to file. File Form 8703 with the:
bonds under section 141. When the bonds
Internal Revenue Service
are no longer qualified, the interest paid or to
See Rev. Rul. 94-57, 1994-2 C.B. 5, for
Service Center
be paid on the bonds is taxable, and the
guidance on computing the income limits
Ogden, UT 84201
issuers or brokers of the bonds must report
applicable to these tests. See Pub. 4492,
the taxable interest to bond holders as
Information for Taxpayers Affected by
Penalty. Section 6652(j) provides for a penalty
required by section 6049. See Regulations
Hurricanes Katrina, Rita, and Wilma, for details
of $100 for each failure to comply with the
sections 1.103-8(b)(1)-(9) and sections 141,
about the GO Zone. See Pub. 4492-B,
section 142(d)(7) certification requirements
142, and 103 for additional information.
Information for Affected Taxpayers in the
unless it can be shown that failure to file is due
Midwestern Disaster Areas, for details about the
to reasonable cause and not to willful neglect.
Lines 10a and 10b. Complete these lines only
Midwestern Disaster areas.
if an election was made to treat the project as
Questions on filing Form 8703. For specific
a deep-rent skewed project under section
Line 2. The qualified project period is the
questions on how to file Form 8703, send an
142(d)(4). The 15-40 test that applies to the
period beginning on the first day that 10% of
email to the IRS at:
deep-rent skewed project election is not an
the residential units are occupied and ending on
TaxExemptBondQuestions@irs.gov
additional test for satisfying the requirements
the latest of (a) the date that is 15 years after the
Put "Form 8703 Question" in the subject
of section 142(d)(1). The 15-40 deep-rent
date that 50% of the residential units are
line. In the email, include a description of your
skewed project test relates to the
occupied, (b) the first day that no tax-exempt
question, a return email address, the name of
determination of a low-income tenant’s
private activity bond issued for the project is
a contact person, and a telephone number.
income. Generally, a continuing resident’s
outstanding, or (c) the date that any assistance
income may increase but not exceed 140% of
provided for the project under section 8 of the
Specific Instructions
the applicable income limit (i.e., 50% or less
United States Housing Act of 1937 terminates.
or 60% or less of the area median gross
Lines 3a and 3b. If a low-income housing
income under the line 1a or 1b test). When
Part I—General Information
credit allocation was issued for more than one
the deep-rent skewed election is made and
building in the project, attach a schedule
Enter the name, address (including ZIP or
the requirements of section 142(d)(4)(B) are
listing the building identification number (BIN)
foreign postal code), and taxpayer identification
met, the income of a continuing resident may
for each building.
number of both the operator and the owner of
increase up to 170% of the applicable income
the project. Enter the address of the project. Do
Line 4. The determination of whether the
limit. If this election is made, at least 15% of
not use P.O. boxes.
income of a resident of a unit in a project
all low-income units in the project must be
exceeds the applicable income limit shall be
occupied by tenants whose income is 40% or
Amended return. An issuer may file an
made at least annually on the basis of the
less of the area median gross income.
amended return to change or add to the
current income of the resident, except for
information reported on a previously filed
On line 10a, enter the number of
respect to any project for any year if during
return for the same date of issue. If you are
low-income units occupied by individuals
such year no residential unit in the project is
filing to correct errors or change a previously
whose income is 40% or less of the area
occupied by a new resident whose income
filed return, check the "Amended Return" box
median gross income. Also include the
exceeds the applicable income limit. See
in the heading of the form.
number of units occupied by continuing
section 142(d)(3)(A). Check "Yes" if there are
residents whose income is treated as not
no new residents in the project whose income
exceeding the applicable income limit. If the
exceeds the applicable income limits.
percentage on line 10b is less than 15%, the
Therefore, if “Yes” is checked, complete Part
project is not a deep-rent skewed project, and
II, skipping lines 6 through 10.
a continuing resident’s income may not
increase above 140% of the applicable
income limit for purposes of section 142(d).
4
Form 8703 (Rev. 9-2013)
Page
Privacy Act and Paperwork Reduction
Line 11. Enter the number of low-income
Line 18. Enter the CUSIP (Committee on
units vacated during the calendar year.
Uniform Securities Identification Procedures)
Act Notice
number of the bond with the latest maturity. If
Line 12. Enter the number of vacated
We ask for the information on this form to carry
the issue does not have a CUSIP number,
low-income units that were occupied by new
out the Internal Revenue laws of the United
write "None." The CUSIP number should be
residents who were low-income residents at
States. Code section 142(d)(7) requires that an
identical to the CUSIP number listed on Form
the time of occupancy. The instructions for
annual certification be filed with the IRS to
8038, Part I, line 9, filed with respect to the
lines 6 and 7 describe low-income residents.
determine whether the legal requirements of that
bond issue.
section are being met. Routine uses of the
Line 13. Enter the number of vacant
Line 19. Enter the issue price of the bond
information provided on this form include giving
low-income units that were held available for
issue. The issue price of bonds is generally
it to the Department of Justice for civil and
low-income residents as of the end of the
determined under Regulations section
criminal litigation and to other federal agencies,
calendar year.
1.148-1(b). Thus, when issued for cash, the
as provided by law. We may disclose the
Note. Lines 11 through 13 ask questions
issue price is the first price at which a
information to cities, states, the District of
about low-income units that were vacated
substantial amount of the bonds are sold to
Columbia, and U.S. commonwealths or
during the calendar year. Regulations sections
the public. To determine the issue price of an
possessions to administer their tax laws. We
1.103-8(b)(5)(i) and (ii) provide, that low-
obligation issued for property, see sections
may also disclose the information to foreign
income units must be rented or available for
1273 and 1274 and the related regulations.
governments pursuant to tax treaties or to
rent on a continuous basis by low-income
The issue price should be identical to the
federal and state agencies to enforce federal
tenants during the longer of: (a) the remaining
issue price listed on Form 8038, Part III, line
nontax criminal laws and to combat terrorism. If
term of the bond, or (b) the qualified project
21(b), filed with respect to the bond issue.
you do not provide this form or all of the
period. If lines 12 and 13 do not add up to line
information requested on it, you may be subject
Line 20. The final maturity date is the last date
11, then make a determination as to whether
to penalties.
the issuer must redeem the entire issue. Enter
the project is in compliance with the
the date in an MM/DD/YYYY format. The final
To ensure proper identification of the owner
requirements of section 142(d). If it is
maturity date should be identical to the final
and operator of the project, Code section 6109
determined that the project is not in
maturity date listed on Form 8038, Part III, line
and its regulations require an identifying
compliance, check the box in Part IV to certify
21(a), filed with respect to the bond issue.
number (social security number (SSN) or
that the project "does not meet" the
employer identification number (EIN)) on the
requirements of section 142(d).
Certification
annual certification.
Part III—Issuer and Description of
Section 142(d)(7) requires the operator of the
You are not required to provide the
Bonds
project to submit this annual certification as to
information requested on a form that is subject
whether the project continues to meet the
to the Paperwork Reduction Act unless the form
If the project for which you are filing Form
requirements of section 142(d). This form must
displays a valid OMB control number. Books or
8703 has been financed by more than one
be signed by the operator of the project.
records relating to a form or its instructions must
tax-exempt bond issue, attach a separate
be retained as long as their contents may
statement containing the information required
Paid Preparer
become material in the administration of any
in Part III, lines 14 through 20, for each bond
If an authorized officer of the operator filled in
Internal Revenue law. Generally, return
issue.
this return, the paid preparer's space should
information is confidential, as required by Code
Line 14. The issuer's name is the name of the
remain blank. Anyone who prepares the return
section 6103.
entity issuing the bonds, not the name of the
but does not charge the organization should not
The time needed to complete and file this
entity receiving the benefits of the financing.
sign the return. Certain others who prepare the
form will vary depending on individual
The name of the issuer should be identical to
return should not sign the return. For example, a
circumstances. The estimated average time is:
the name listed on Form 8038, Part I, line 1,
regular full-time employee of the operator, such
Recordkeeping
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.
. 7 hr., 39 min.
filed with respect to the bond issue.
as a clerk, secretary, etc., should not sign.
Learning about the law
Line 15. Enter the issuer's employer
Generally, anyone who is paid to prepare a
or the form .
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.
1 hr., 51 min.
identification number (EIN). The issuer's EIN
return must sign it and fill in the other blanks in
Preparing and sending the
should be identical to the EIN listed on Form
the Paid Preparer Use Only area of the return.
form to the IRS .
.
.
.
.
3 hr., 16 min.
8038, Part I, line 2, filed with respect to the
The paid preparer must: Sign the return in the
If you have comments concerning the
bond issue.
space provided for the preparer's signature,
accuracy of these time estimates or
Line 16. Enter the name of the bond issue. If
enter the preparer information, and give a copy
suggestions for making this form simpler, we
there is no name of the issue, please provide
of the return to the operator.
would be happy to hear from you. You can send
other identification of the issue. The name of
your comments to:
the bond issue should be identical to the
Internal Revenue Service
name listed on Form 8038, Part I, line 8, filed
Tax Forms and Publications Division
with respect to the bond issue.
1111 Constitution Ave. NW, IR-6526
Line 17. Enter the date of the bond issue.
Washington, DC 20224
Enter the date in an MM/DD/YYYY format.
Do not send the form to this address.
The date of the bond issue is generally the
Instead, see Where to file, earlier.
date on which the issuer physically
exchanges the bonds for the underwriter's (or
other purchaser's) funds. The issue date
should be identical to the issue date listed on
Form 8038, Part I, line 7, filed with respect to
the bond issue.
Page of 4