Understanding Opportunity Zone Tax Incentives in Light of New Congressional Oversight and the TIGTA Report

A live 90-minute premium CLE/CPE video webinar with interactive Q&A

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Wednesday, July 13, 2022 (in 13 days)

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

or call 1-800-926-7926

This CLE/CPE webinar will provide tax counsel and advisers with a detailed analysis of the qualified opportunity zone (QOZ) tax incentives in light of new congressional oversight and the recent Treasury Inspector General for Tax Administration (TIGTA) report. The panel will discuss recent developments and congressional oversight for QOZ tax incentives and critical challenges for taxpayers stemming from the TIGTA report. The panel will discuss methods to ensure deferral or reduction of capital gains and outline additional tax planning strategies associated with opportunity zone funds and businesses.

Description

On Feb. 7, 2022, TIGTA issued a final report assessing IRS implementation of the QOZ program providing critical insight into the actions likely to be taken by the IRS in auditing qualified opportunity funds (QOFs) and their investors. Tax counsel and advisers must understand the QOZ rules and challenges in light of the TIGTA report to effectively advise clients.

The QOZ program allows taxpayers to defer and reduce capital gains by allowing the taxpayer to reinvest capital gain proceeds in a QOF. This new incentive investment program subsidizes growing businesses in low-income communities through short- and long-term capital gains deferral, providing a substantial step-up in tax basis and tax abatement on the post-investment appreciation.

To take advantage of the program's tax benefits, a taxpayer must reinvest capital gain proceeds in a QOF within 180 days from the date of the sale or exchange of a capital asset. A QOF must hold at least 90 percent of the fund's assets in QOZ property.

The recently issued TIGTA report concluded that (1) additional actions are needed to address QOF noncompliance with the QOZ program requirements; (2) additional actions are needed to identify and address inaccurate or incomplete investor reporting on Form 8997, and (3) additional tracking recommendations are needed to ensure compliance and effectively identifying false information and noncompliance.

Tax counsel and advisers must understand and develop planning techniques to assist individuals or businesses seeking to invest capital, raise funds, or that will recognize significant capital gains in the next few years.

Listen as our panel discusses critical provisions of the TIGTA report and its impact on the QOZ program, QOZ tax incentives as an investment tool for taxpayers, the necessary legal requirements and processes to achieve the tax benefits, and techniques to ensure deferral or reduction of capital gains, as well as a discussion of critical open issues, analysis, and recommended guidance for counsel and advisers.

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Outline

  1. Key issues in light of the TIGTA report
  2. Processes and criteria designating QOZs
  3. Securing the tax benefits of opportunity zone investments
  4. Best practices and tax planning techniques for counsel

Benefits

The panel will review these and other key issues:

  • How does the recent TIGTA report provide clarity and challenges for investors?
  • What are the opportunity zones and eligibility requirements under IRC 45D(e)?
  • What tax benefits do opportunity zones provide?
  • What are opportunity zone funds and QOZ businesses?
  • How can taxpayers ensure the deferral or reduction of capital gains and the appreciation exclusion?

Faculty

Horwitz, Robert
Robert Horwitz

Principal
Hochman Salkin Toscher Perez

Mr. Horwitz has over 35 years of experience as a tax attorney specializing in the representation of clients in civil...  |  Read More

Stein, Michel
Michel R. Stein

Principal
Hochman Salkin Toscher Perez

Mr. Stein specializes in tax controversies, as well as tax planning for individuals, businesses and corporations. For...  |  Read More

Toscher, Steven
Steven (Steve) Toscher

Managing Principal
Hochman Salkin Toscher Perez

Mr. Toscher has been representing clients for more than 35 years before the Internal Revenue Service, the Tax Divisions...  |  Read More

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