The IRS has started sending letters to taxpayers who may need to take additional actions related to qualified opportunity funds (QOFs).
Taxpayers who attached or indicated they attached a Form 8996 to their return may receive a letter informing them that if they intended to self-certify as a QOF, they may need to take additional action to meet the annual self-certification requirement.
If an entity that receives the letter fails to take action to self-certify as a QOF, the IRS may refer its tax account for examination. Learn more.