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Draft of revised Form 8996 for reporting opportunity zone fund data

Revised Form 8996, reporting opportunity zone fund data

The IRS has posted on its website a draft version of a revised Form 8996, “Qualified Opportunity Funds” for the 2019 tax year.

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Read the draft version of revised Form 8996 [PDF 172 KB] that reflects a “watermark” date of October 30, 2019, and includes cautionary language that this draft form is not to be filed, or relied upon for filing purposes, and is subject to change and to OMB approval before being officially released.

In a related release, the Treasury Department explained that the revised Form 8996 would be used to collect information on the amount of investment by opportunity funds in business property by census tract.  Specifically, as proposed, the revised Form 8996 would require qualified opportunity funds (QOFs) to report:

  • The employer identification number (EIN) of each business in which the QOF has an ownership interest
  • The disposition of an investor’s equity interest in the QOF
  • The census tract location of the tangible property of the business
  • The value of the QOF’s investment
  • The value and census tract location of qualified business property it owns or leases directly
  • The valuation method used to value the property

Treasury reported that this information will allow it to monitor the amount of investment received by different tracts over time and will help policymakers to evaluate the effects of this tax incentive and to understand why some locations may be more successful than others in attracting investment.

 

For more information contact a tax professional in KPMG’s Washington National Tax:

Susan Reaman | +1 202 533 3541 | sreaman@kpmg.com

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