IRS Issues Proposed Regulations on Qualified Opportunity Funds: Proposed Regulations Would Clarify a Number of Threshold Issues But Also Leave Many Other Issues to be Resolved by Future GuidanceSullivan & Cromwell LLP - October 23, 2018
On October 19, the Internal Revenue Service and the Treasury Department released the first set of proposed regulations to provide guidance on investing in qualified opportunity zones through qualified opportunity funds under a new tax incentive program created by last year’s federal tax reform legislation. The Internal Revenue Service also contemporaneously released Revenue Ruling 2018-29 and drafts of the QOF self-certification form (IRS Form 8996) and form instructions for additional guidance. The proposed regulations would clarify a number of threshold issues left open by the statutory text. However, the proposed regulations also defer to future guidance to resolve many other outstanding questions and invite taxpayer comments.