Katherine Noll article on "Invested in Qualified Opportunity Zones?"
In a recent Today’s CPA article, Katherine Noll, shareholder in our San Antonio Tax practice, discussed the current status of the Qualified Opportunity Zone (QOZ) tax incentives and anticipated compliance issues going forward.
Noll noted that according to a recent report, 37% of initially e-filed 2018 Forms 8996 failed to file the following tax year. Many Qualified Opportunity Funds (QOF) also failed to include required information on Form 8996 and intentionally did not comply with the QOZ requirements. Finally, many QOFs reported investment in another QOF - contrary to the statute, which requires a QOF be “organized for the purpose of investing in qualified opportunity zone property (other than qualified opportunity zone fund).”
“While certain structural issues with QOZ Funds may be difficult to correct, now is the time to look into any concerns,” said Noll. “Due to the COVID-19 pandemic, the IRS issued relief to QOZ compliance requirements, which presents an opportunity to potentially remedy mistakes.”
Read the full article to learn more: https://www.tx.cpa/resources/txcpa-magazine/issue-details/may-june-2022/2022/05/10/invested-in-qualified-opportunity-zones