IRS Regs Let Opportunity Zone Businesses Pivot Due To Virus

Daniel Ryan was quoted in the article, "IRS Regs Let Opportunity Zone Businesses Pivot Due To Virus," which was published by Law360 [sub. req.] on May 19, 2021.

The article discusses the recently proposed rules that now allow for opportunity zone funds that operate businesses to change their written plans for the deployment of cash into their operations, which will provide much needed flexibility to make operational adjustments in response to the pandemic.

Dan explained that this regulatory flexibility was welcome because many of his opportunity zone clients wanted to alter their plans due to the pandemic but did not know to what extent they could make changes. He comments, "They have their written plan for the use of working capital but because of COVID-19, they may have to pivot to a new project or substantially change. There wasn't anything that said you could still change your written plan with the safe harbor, [but] now you can."