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."

The IRS guidance, issued as Notice 2020-39, addresses the application of certain relief provisions under section 1400Z-2 and accompanying regulations, including:

• 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.

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