The IRS has released new deadlines for opportunity zone investments. The guidance includes new investment deadlines, penalty notices and extensions to improvement periods, all of which will help to fuel investment in distressed assets through the market change.

"The Internal Revenue Service recently released Notice 2020-39, providing generous benefits for qualified opportunity funds and their investors," Phil Jelsma, a partner and chair of the tax practiceeam at Crosbie Gliner Schiffman Southard & Swanson, tells GlobeSt.com. "The Notice provides relief regarding the time deadline to invest in a QOF; penalty relief; extending the 30-month substantial improvement period; extending the period of time of the working capital safe harbor; and extending the 12-month reinvestment period for sale of properties by a QOF."

These new deadlines and regulations line up with increasing investor interest in distressed asset investing as a result of the pandemic. "The opportunity zone programs rely on investors deploying capital gains," says Jelsma. "The volatility and uncertainty of the stock market throughout the COVID-19 pandemic has investors searching for other places to put their money, and opportunity zone funds offer an appealing alternative."