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“It is belated, but it is welcome,” Steven R. Meier of Seyfarth says about the recent IRS guidance on written plans for working capital safe harbor compliance for opportunity zone businesses. After a year of questions, the IRS has officially allowed opportunity zone businesses to revise or replace written plans following federally declared disasters, like the pandemic.

The new guidance gives qualified opportunity zone businesses an additional 24 months to expend its working capital assets in light, according to Meier. The guidance does require that businesses maintain a new plan that is in alignment with the original pre-pandemic plan. “The guidance is retroactive from written plans back to January 1, 2020, which is before the COVID pandemic hit. Any plan that was in place on December 31, 2019, which a number of them were put in place at that point to capture capital going into businesses, effectively can be rewritten,” Meier, a partner at Seyfarth tells GlobeSt.com.

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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