I 

116TH CONGRESS 

1ST SESSION H. R. 5011 

To amend the Internal Revenue Code of 1986 to require reporting by qualified 

opportunity funds. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 8, 2019 

Mr. KIND (for himself, Mr. KELLY of Pennsylvania, and Ms. SEWELL of Alabama) introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to require 

reporting by qualified opportunity funds. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Opportunity Zone Ac5 countability and Transparency Act’’. 

6 SEC. 2. REPORTING REQUIREMENTS FOR QUALIFIED OP7 PORTUNITY FUNDS. 

8 (a) IN GENERAL.—Subpart A of part III of sub9 chapter A of chapter 61 of the Internal Revenue Code of 


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1 1986 is amended by inserting after section 6039J the fol2 lowing new section: 

3 ‘‘SEC. 6039K. RETURNS BY QUALIFIED OPPORTUNITY 

4 FUNDS. 

5 ‘‘(a) IN GENERAL.—Every qualified opportunity fund 

6 shall electronically file an annual return which contains 

7 the information described in subsection (b). 

8 ‘‘(b) INFORMATION REQUIRED.—The information de9 scribed in this subsection is as follows: 

10 ‘‘(1) FUND INFORMATION.— 

11 ‘‘(A) The name, address, and TIN of the 

12 qualified opportunity fund. 

13 ‘‘(B) The entity classification of the quali14 fied opportunity fund, such as whether such 

15 fund is a partnership, C corporation, S corpora16 tion, or real estate investment trust. 

17 ‘‘(C) Certification that the purpose of the 

18 qualified opportunity fund is investing in quali19 fied opportunity zone property. 

20 ‘‘(D) The total assets held by the qualified 

21 opportunity fund determined as of each meas22 urement date in the reporting period. 

23 ‘‘(E) The aggregate amount of each of the 

24 following which is held in the qualified opporVerDate Sep 11 2014 22:09 Nov 18, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5011.IH H5011

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1 tunity fund as of each measurement date in the 

2 reporting period: 

3 ‘‘(i) Qualified opportunity zone stock. 

4 ‘‘(ii) Qualified opportunity zone part5 nership interests. 

6 ‘‘(iii) Qualified opportunity zone busi7 ness property. 

8 ‘‘(F) As of each measurement date in the 

9 reporting period, the aggregate amount of in10 vestments in the qualified opportunity fund 

11 which are described in section 1400Z– 

12 2(e)(1)(A)(i) and the ratio of such investments 

13 to all investments in such fund. 

14 ‘‘(2) INFORMATION REGARDING QUALIFIED OP15 PORTUNITY ZONE CORPORATIONS AND PARTNER16 SHIPS.—With respect to each corporation or part17 nership any qualified opportunity zone stock or 

18 qualified opportunity zone partnership interest of 

19 which is held by the qualified opportunity fund: 

20 ‘‘(A) The name, address, and TIN of each 

21 such corporation or partnership. 

22 ‘‘(B) Certification that such corporation or 

23 partnership satisfies each of the requirements 

24 of subclauses (I), (II), and (III) of section 

25 1400Z–2(d)(2)(B)(i) or clauses (i), (ii), and 


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1 (iii) of section 1400Z–2(d)(2)(C) (as the case 

2 may be) with respect to the qualified oppor3 tunity fund. 

4 ‘‘(C) The total investment by the qualified 

5 opportunity fund in such corporation or part6 nership determined as of each measurement 

7 date in the reporting period. 

8 ‘‘(D) The percentage of stock in such cor9 poration, or interest in such partnership (as the 

10 case may be) which is held by the qualified op11 portunity fund (determined separately on the 

12 basis of both vote and value) as of each meas13 urement date in the reporting period. 

14 ‘‘(3) INFORMATION REGARDING QUALIFIED OP15 PORTUNITY ZONE BUSINESSES.—With respect to 

16 each trade or business carried on by any corporation 

17 or partnership referred to in paragraph (2) and each 

18 trade or business with respect to which the qualified 

19 opportunity fund holds qualified opportunity zone 

20 business property (and determined as of each meas21 urement date in the reporting period): 

22 ‘‘(A) The principal line of business of the 

23 trade or business. 

24 ‘‘(B) With respect to any real property 

25 used in such trade or business— 


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1 ‘‘(i) the address of such real property, 

2 ‘‘(ii) whether such real property is 

3 owned or leased by such corporation, part4 nership, or fund, 

5 ‘‘(iii) the square footage of any build6 ings which are part of such real property, 

7 ‘‘(iv) the number of residential units 

8 which are part of such real property, and 

9 the number of such units which are rental 

10 units, and 

11 ‘‘(v) to the extent known by such cor12 poration, partnership, or fund, the number 

13 of residential rental units that are part of 

14 such property which are occupied by indi15 viduals whose income is 50 percent or less 

16 of area median gross income (within the 

17 meaning of section 42(g)(1)(A)). 

18 ‘‘(C) With respect to any property held by 

19 such corporation, partnership or fund, and used 

20 in such trade or business, the qualified oppor21 tunity zone in which such property is primarily 

22 used and the aggregate value of the investment 

23 in such property used in such zone, separately 

24 stated with respect to each of the following cat25 egories of property (and separately stated with 


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1 respect to each such category on the basis of 

2 whether such property is owned or leased): 

3 ‘‘(i) Real property (including improve4 ments to real property). 

5 ‘‘(ii) Improvements to real property. 

6 ‘‘(iii) Tangible personal property. 

7 ‘‘(iv) Intangible property (excluding 

8 leases of real or tangible personal prop9 erty). 

10 ‘‘(v) Any other property. 

11 ‘‘(D) The number of employees (stated in 

12 full-time equivalents) employed in such trade or 

13 business. 

14 ‘‘(4) OTHER INFORMATION.—Such other infor15 mation as the Secretary may reasonably require. 

16 ‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur17 poses of this section— 

18 ‘‘(1) IN GENERAL.—Any term used in this sec19 tion which is also used in subchapter Z of chapter 

20 1 shall have the meaning given such term in such 

21 subchapter. 

22 ‘‘(2) MEASUREMENT DATE.—The term ‘meas23 urement date’ means— 

24 ‘‘(A) the date referred to in subparagraph 

25 (A) of section 1400Z–2(d)(1), and 


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1 ‘‘(B) the date referred to in subparagraph 

2 (B) of such section. 

3 ‘‘(3) REPORTING PERIOD.—The term ‘reporting 

4 period’ means the taxable year for which the report 

5 under this section is made. 

6 ‘‘(d) REGULATIONS.—The Secretary shall prescribe 

7 such regulations as may be necessary to carry out the pur8 poses of this section, including the time and manner of 

9 filing the return required under subsection (a). 

10 ‘‘(e) PUBLIC AVAILABILITY OF RETURNS.—Annual 

11 returns filed under this section shall be made available by 

12 the Secretary to the public as soon as practicable in a ma13 chine readable format. Prior to making any return avail14 able to the public under this subsection, the Secretary 

15 shall redact any individual’s TIN which appears in such 

16 return.’’. 

17 (b) PENALTY FOR FAILURE TO FILE COMPLETE AND

18 CORRECT RETURN.—Section 6652 of such Code is amend19 ed by adding at the end the following new subsection: 

20 ‘‘(q) FAILURE OF QUALIFIED OPPORTUNITY FUND

21 TO FILE CORRECT INFORMATION RETURN.—In the case 

22 of a qualified opportunity fund’s failure to file a complete 

23 and correct return under section 6039K at the time and 

24 in the manner prescribed therefor, unless it is shown that 

25 such failure is due to reasonable cause and not to willful 


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1 neglect, there shall be paid (upon notice and demand by 

2 the Secretary and in the same manner as tax) by such 

3 fund $500 for each day during which such failure con4 tinues. The maximum penalty under this subsection on 

5 failures with respect to any 1 return shall not exceed 

6 $200,000.’’. 

7 (c) COLLECTION AND AVAILABILITY OF STATISTICAL

8 INFORMATION.—The Secretary of the Treasury, or the 

9 Secretary’s designee shall— 

10 (1) collect and compile statistical information 

11 with respect to each qualified opportunity zone, in12 cluding the number of qualified opportunity funds 

13 that have made an investment in each qualified op14 portunity zone, the aggregate amount of investment 

15 in each zone by qualified opportunity funds, and 

16 such other metrics concerning job creation, poverty 

17 reduction, and community and economic develop18 ment that the Secretary considers appropriate, and 

19 (2) make such information available to the pub20 lic on an annual basis. 

21 (d) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to reports for taxable years ending 

23 after the date of the enactment of this Act. 

Æ 


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