Overview
Bloomberg Tax quoted Lisa Zarlenga in an article titled "No Plan for Third Round of Opportunity Zone Rules, Officials Say." The article, published May 13, discusses how the Internal Revenue Service and Treasury Department have no plan for a third tranche of proposed regulations for the 2017 tax overhaul's opportunity zone tax breaks. According to some experts, guidance to address remaining uncertainties including data reporting and penalties is still needed.
Zarlenga, a former Treasury tax legislative counsel, says that whether a fund can lose its tax-preferred opportunity fund status to begin with remains an open question as well. "Really, the statute only provides for penalty. The preamble to the proposed regulations asked for comments on that, and indicates that they'll provide guidance in the future. But it's interesting because the statute doesn't actually set up a de-certification process."
The full article can be read at Bloomberg Tax.
