IRS deadline extended for some Opportunity Zone investors

The IRS has extended the investment deadline for Qualified Opportunity Fund investors whose 180-day deadline falls between April 1 and July 15. The investment deadline for these individuals has been automatically extended to July 15, 2020. In general, this relief may apply to investors who recognized capital gains between October 4, 2019 and January 17, 2020.

Here is the section of IRS Notice 2020-23 that is of particular interest to Qualified Opportunity Fund investors, which is covered by Section 1400Z-2 of the tax code:

The Secretary of the Treasury has also determined that any person performing a time-sensitive action listed in either § 301.7508A-1(c)(1)(iv) – (vi) of the Procedure and Administration Regulations or Revenue Procedure 2018-58, 2018-50 IRB 990 (December 10, 2018), which is due to be performed on or after April 1, 2020, and before July 15, 2020 (Specified Time-Sensitive Action), is an Affected Taxpayer. For purposes of this notice, the term Specified Time-Sensitive Action also includes an investment at the election of a taxpayer due to be made during the 180-day period described in section 1400Z-2(a)(1)(A) of the Code.

Last month, the IRS extended relief to taxpayers by moving back the federal income tax filing due date from April 15 to July 15. This notice expands the relief to additional key deadlines, including Opportunity Zones and 1031 exchanges.