IRS TO SEND LETTERS TO OPPORTUNITY ZONE INVESTORS WITH MISSING INFORMATION

Taxpayers could receive any of the following:

Letter 6501, Qualified Opportunity Fund (QOF) Investment Standard – Taxpayers who receive this letter may need to file an amended return or an administrative adjustment request (AAR) to correct the annual certification of the investment standard. Those who receive a letter but do not take action could have their account referred for examination.

Letter 6502, Reporting Qualified Opportunity Fund (QOF) Investments – This letter alerts taxpayers that they may not have correctly followed instructions for Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments. To maintain a qualifying investment in a QOF, they may file an amended return or AAR with an attached and correctly completed Form 8997. As with Letter 6501, failure to take action may result in the examination of tax accounts.

Letter 6503, Annual Reporting of Qualified Opportunity Fund (QOF) Investments – This letter also alerts taxpayers that they may not have correctly followed instructions for Form 8997. As with Letter 6502, an amended return or AAR with a new Form 8997 should be filed to avoid potential referral for examination.