IRS Extends Investment Deadlines for OZ Funds

The National Law Review (Saturday, January 23, 2021) –

In IRS Notice 2021-10 (the New Notice), the IRS granted relief to Opportunity Zone Funds because of the COVID-19 pandemic. The New Notice generally extends the relief that had previously been granted pursuant to IRS Notice 2020-39 (the Prior Notice). Relief under the Prior Notice generally expired on December 31, 2020; the New Notice extends this relief into 2021. The main benefits are the following:

Extension of 180-Day Investment Period

Investors have a 180-day period in which to invest in an Opportunity Zone Fund. Under the New Notice, if that 180-day period would ordinarily end after March 31, 2020, the period may be extended until March 31, 2021. (The Prior Notice extended this period only until December 31, 2020.)

Penalties Generally Waived for 2020 and 2021 Tax Years if Fund Formed Before 2021

An Opportunity Zone Fund must generally satisfy various criteria that are evaluated on two testing dates each year. If the criteria are not satisfied, penalties may be imposed on the fund. The New Notice generally waives Opportunity Zone penalties for the 2020 and 2021 tax years if the fund was formed before 2021. The New Notice does not waive any penalties for Opportunity Zone Funds formed in 2021, however.


Read the full The National Law Review Article HERE.

Learn more about Asher Adams, Hatteras Sky’s debut Opportunity Zone funded project located in Salt Lake City, Utah, HERE.