Abstract
In this article, the authors discuss how a self-certified Qualified Opportunity Fund (“QOF”) may relinquish that status through the QOF’s voluntary self-decertification or an involuntary decertification under the anti-abuse rules, and the consequences to tax-deferred investors in a QOF of either such decertification. It also discusses the recent guidance on QOF self-decertification, which initially appeared as a simple check-the-box election on line 6 of the November 6, 2020 draft of IRS Form 8996, Qualified Opportunity Fund, only to have that line removed entirely from the final version of that form. It also explores how the failure of the Internal Revenue Service to promulgate forms, instructions, or other guidance regarding the QOF’s voluntary self-decertification election necessitated change to the final regulation in “correcting amendments” issued on August 5, 2021, and how the current uncertainty surrounding the voluntary decertification process has impacted qualified opportunity zone funds and businesses that, due to the economic changes wrought by COVID-19, have lost their raison d’etre.
Recommended Citation
Adam Wallwork,
Decertification of Qualified Opportunity Funds,
47
S. Ill. U. L.J.
79
(2022).
Available at:
https://opensiuc.lib.siu.edu/siulj/vol47/iss1/2