By Opportunity Zone Magazine Staff
The Treasury and IRS today released a proposed new tax form to collect Qualified Opportunity Funds data for the 2019 tax year. Form 8996 is designed to collect information about the fund’s investment amount, location and ownership interests.
“This is an important step towards a thorough evaluation of the Opportunity Zone tax incentive,” said Treasury Secretary Steven T. Mnuchin. “We want to understand where Opportunity Zone investments are going and strengthening the economy so that investors and communities can learn from the successes of this bipartisan, pro-growth policy.”
The proposed form requires QOFs to report the EIN of each business the fund has an ownership interest, the census tract location of the tangible property of the business, the value of its investments.
The action will also allow the Treasury to monitor how much OZ investments have been injected in various tracts across the country over time and help them evaluate the impact of the tax incentive.