10 Groups Tell IRS Opportunity Zone Rules Are Problematic

Law360 — July 2, 2019

Ten advocacy organizations have criticized proposed federal opportunity zone rules for containing safe harbors that would grant tax benefits on investments made outside the economically distressed areas designated for such benefits.

The organizations, in a Monday letter, recommended that the Internal Revenue Service ensure tax benefits are prorated only to business activity and investments made within an opportunity zone. They also called on the IRS to strengthen "vague and unenforceable" anti-abuse rules.

The groups also urged the IRS to close "substantial improvement" loopholes that they said would allow funds to invest in land and reap tax benefits without making any structural improvements to a property.

The letter was signed by the Americans for Financial Reform Education Fund, Americans for Tax Fairness, Bargaining for the Common Good, Main Street Alliance, National Coalition for the Homeless, National Consumer Law Center, National Fair Housing Alliance, New Jersey Citizen Action, Prosperity Now and the Woodstock Institute.

— Editing by Vincent Sherry.

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