Date Issued
Report Number
2022-40-018
Report Type
Audit
Joint Report
Yes
Participating OIG
Treasury Inspector General for Tax Administration
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0
Recommendations
The Commissioner, Small Business/Self-Employed Division, should work with the IRS Office of Chief Counsel, in consultation with the Department of the Treasury Office of Tax Policy, to develop guidance for Qualified Opportunity Funds (QOFs) that intentionally do not comply with program requirements.
The Commissioner, Small Business/Self-Employed Division, should develop processes and procedures to decertify Qualified Opportunity Funds (QOFs) that intentionally do not comply with program requirements.
rejected recommendation
The Commissioner, Small Business/Self-Employed Division, should as part of the compliance initiative project, review the 699 Qualified Opportunity Funds (QOFs) that we identified with an invalid or *******2****** number on TY 2019 tax returns and take appropriate actions to address noncompliance with QOF fund certification requirements.
The Commissioner, Small Business/Self-Employed Division, should review the 341 Qualified Opportunity Funds (QOFs) that reported investments in another QOF or their own Employer Identification Number (EIN) on Tax Year (TY) 2019 tax returns and address QOFs that include these investments in their total QOZ property when calculating their investment standard (Form 8996, Part II.)
The Commissioner, Small Business/Self-Employed Division, should as part of the compliance initiative project, review the 5,141 investor returns for which the investor reported *************************2************************** and address any ineligible deferred capital gains