IRS Extends Prior Relief To Opportunity Zone Investment Programs

Seyfarth Synopsis: On January 19, 2021, the Internal Revenue Service (the "IRS") issued Notice 2021-10 (the "Notice"), which extends the relief that it previously provided to qualified opportunity funds, their sponsors, and their investors when it issued Notice 2020-39 on Thursday, June 4, 2020. You can see the prior Legal Update on the Notice 2020-39 here. In general, the Notice extends each relief provision until either March 31, 2021 or June 30, 2021. The extended relief will allow qualified opportunity funds, their sponsors, and their investors to continue to address the challenges presented by COVID-19.

Here is a summary of the extended relief:

• The Notice further extends the 180-day deadline for taxpayers to invest eligible gains in a qualified opportunity fund. Now, if a taxpayer's 180-day deadline to invest eligible gains in a qualified opportunity fund was or is on or between April 1, 2020 and March 31, 2021, then the deadline has been