2021 COVID-19 Timing Relief for QOFs, QOZBs, and Opportunity Zone Investors

Summary

On January 19, 2021, the IRS issued Notice 2021-10, which extends relief previously granted last June to those in the opportunity zone investors in response to the COVID-19 pandemic. The earlier relief was contained in Notice 2020-39 (the June 2020 Notice), but many of its provisions expired on December 31, 2020. Given the ongoing pandemic, Treasury and the IRS received numerous requests for additional relief. The Opportunity Z one program (the OZ Program) is riddled with deadlines and time-sensitive requirements, so the further relaxation and extension of some of these deadline s and requirements is welcome news. Although the IRS did not include any new areas of hoped-for relief, discussed below in the Missed Opportunities section, the extension of the relief provisions from the June 2020 Notice will be helpful for investors, qualified opportunity funds (QOFs), and qualified opportunity zone businesses (QOZBs).