As COVID-19 continues to affect businesses and markets alike, the IRS released Notice 2020-39 to provide relief for qualified opportunity funds (QOFs) and respective investors. These changes include reinvestment and safe harbor extensions, created with the intent to encourage investing in the wake of potential financial distress from the global pandemic. The IRS updated the QOF FAQ with current guidance that includes these changes.
We expect further guidance from the IRS about QOFs and investment standards and we have outlined the first of these changes here.