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Internal Revenue Service Provides Additional COVID-19 Related Relief for Opportunity Zones Investors | Sullivan & Worcester


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On January 19, 2021, the Internal Revenue Service (“IRS”) issued Notice 2021-10 (the “Notice”), which provides relief for Opportunity Fund investors from certain deadlines and testing requirements. The relief provided by the Notice extends prior relief granted by the IRS in 2020 to Opportunity Fund investors and is a response to the ongoing COVID-19 pandemic.
Extension of 180-Day Investment Requirement
Under section 1400Z-2(a)(1) of the Internal Revenue Code of 1986, as amended (the “Code”), taxpayers seeking to take advantage of certain tax benefits under the Opportunity Zones statute must invest any eligible capital gains in a Qualified Opportunity Fund (“QOF”) (i) within 180 days of the date the capital gain is realized, or (ii) in the case of a pass-through entity, (x) within 180 days of the last day of the taxable year of the pass-through entity’s taxable year or (y) within 180 days of ....

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