Form 8997 - Qualified Opportunity Zones

[TUCK]

Greetings,

I had an Individual client defer gains into a Qualified Opportunity Zone in 2018 that were passed through via a Partnership K-1

I did not complete form 8997 in 2019 to report the beginning and ending balances.

Does anyone know what the affect would be? The forms instructions simply say that failure to file the form may lead to an "inclusion event" i.e. the deferral would then become taxable immediately if not reported on the 8997.

Can an amendment be done to the return if there are adverse consequences?

I am trying to finish the client's 2020 tax return and just noticed the mistake.

Please help,

Best,

ZT

[Terry53029]

 following is from irs tax tip  2018-118

Taxpayers should also not amend if they forgot to include a required form or schedule. The IRS will mail a request about the missing item.

I think you should just include it in 2020 and I doubt the irs will catch the missing years. I would also fill out the form 8997 for missing years and put in clients file, so you can send it in if IRS ever asks for it