Owners must report on the compliance status of the LIHTC property at least annually to the State Allocation Agency from which it received its credit allocation. 1.42-5(c)At least annually, State Allocation Agencies are required to monitor and inspect the LIHTC properties in which it has allocated credits. Any discovered or suspected noncompliance must be reported to the Internal Revenue Service (IRS) using IRS Form 8823. State Allocation Agencies must follow very specific requirements for monitoring, inspecting and reporting as laid out by the IRS. [Section 1.42-5 and Federal Register: January 14, 2000 (Volume 65, Number 10) – Compliance Monitoring and Miscellaneous Issues Relating to the Low-Income Housing Credit