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Form 8703 FAQs

Form 8703, Annual Certification of a Residential Rental Project

Residential rental Project Operators must file this form annually. The IRS uses this information to determine whether a project continues to be a qualified residential rental project under IRC Section 142(d).


Who is considered the Project Operator when completing Form 8703?

The Operator of a Project is the person to whom the Issuer or Owner delegates responsibility for ensuring that the Project continues to meet the requirements applicable to qualified residential rental projects under IRC Sections 142(d) and 103. (That person may be, but does not have to be, the Owner. See 26 CFR 601.105)


What if we don’t have the all of the information requested on the Form 8703?

If you don’t provide all of the information requested on Form 8703, you may be subject to penalties. Therefore, due diligence should be exercised to obtain the information to file the form in a complete and timely manner. If you are unable to obtain the needed information by the required filing date, you should go ahead and file the form timely. Once the needed information is obtained, you may amend the original form. The amended return must provide all the information reported on the original return, in addition to the new or corrected information.


Do we complete Form 8703 after our bonds are paid off?

Form 8703 must be filed annually during the qualified project period. The qualified project period is the period beginning on the first day that 10% of the residential units are occupied and ending on the latest of:

  • the date that is 15 years after the date that 50% of the residential units are occupied,
  • the first day that no tax-exempt private activity bond issued for the project is outstanding, or
  • the date that any assistance provided for the project under Section 8 of the United States Housing Act of 1937 terminates.

Therefore, depending on the facts and circumstances surrounding the issuance, a Form 8703 may be required to be filed after the bonds are paid off. For example, if 15 years after the date that 50% of the units are occupied is later than the date the bonds are taken off or if the date that assistance provided under Section 8 is later than the date the bonds are taken off, then the Form 8703 is required to be filed after the bonds are taken off.


What is the correct method for reporting a project on Form 8703 that has multiple buildings?

Form 8703 must be filed annually during the qualified project period for each project. The qualified project period is the period beginning on the first day that 10% of the residential units are occupied and ending on the latest of:

  • the date that is 15 years after the date that 50% of the residential units are occupied,
  • the first day that no tax-exempt private activity bond issued for the project is outstanding, or
  • the date that any assistance provided for the project under Section 8 of the United States Housing Act of 1937 terminates.

A project that consists of multiple buildings placed in service at different times is required to begin filing the Form 8703 once 10% of the residential units for the project are occupied. If the project consists of multiple buildings with multiple building identification number (BIN), attach a schedule listing the BINs for each building for line 3b of the Form 8703.


Is there a program in place for organizations to file delinquent Forms 8703 without the payment of penalty?

There is no “program” for the filing of late Forms 8703. IRC Section 6652(j) provides for a penalty of $100 for each failure to comply with the IRC Section 142(d)(7) certification requirements unless it can be shown that failure to file is due to reasonable cause and not to willful neglect.

Page Last Reviewed or Updated: 10-Aug-2016