DC Tax Flash: Guidance Issued on Virus Relief for Opportunity Zones
The Internal Revenue Service (IRS) today issued guidance providing relief for qualified opportunity funds (QOFs) and their investors during the on-going coronavirus outbreak. The move responds in part to a letter sent to the IRS and Treasury Department from Republican Senators seeking "additional time and flexibility to meet Opportunity Zone requirements, timelines, and thresholds."
- Testing dates for assets held by Qualified Opportunity Funds (QOFs);
- Timeframes for taxpayers to invest eligible gains in QOFs, and reminding taxpayers of additional time under the working capital safe harbor for projects undertaken by qualified opportunity zone businesses; and
- The re-investment of certain proceeds received by QOFs from qualified opportunity zone property.
The 10-page text of Notice 2020-39 is posted here.
An IRS press release is posted here.
The IRS also issued updated FAQs on Opportunity Zones, posted here.
Miller & Chevalier Coronavirus Task Force
The outbreak of COVID-19 is creating significant business and legal challenges for companies throughout the world. In response to client demand, the firm has formed an interdisciplinary task force to help businesses navigate these issues.
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