Title: Opportunity Zone Accountability and Transparency Act
Policy area: Taxation

Summary:
Opportunity Zone Accountability and Transparency Act
This bill requires a qualified opportunity fund to file an annual return containing certain information, including (1) the name, address, and tax identification number of the fund; (2) certification that the purpose of the fund is investment in qualified opportunity zone property, and (3) the total assets held by the fund in the reporting period. The return must also provide similar information for opportunity zone corporations and partnerships and real property used in an opportunity zone business. The bill provides for a penalty for the failure of a fund to file a correct information return.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5011 Introduced in House (IH)]

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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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Opportunity Zone Accountability and 
Transparency Act''.

SEC. 2. REPORTING REQUIREMENTS FOR QUALIFIED OPPORTUNITY FUNDS.

    (a) In General.--Subpart A of part III of subchapter A of chapter 
61 of the Internal Revenue Code of 1986 is amended by inserting after 
section 6039J the following new section:

``SEC. 6039K. RETURNS BY QUALIFIED OPPORTUNITY FUNDS.

    ``(a) In General.--Every qualified opportunity fund shall 
electronically file an annual return which contains the information 
described in subsection (b).
    ``(b) Information Required.--The information described in this 
subsection is as follows:
            ``(1) Fund information.--
                    ``(A) The name, address, and TIN of the qualified 
                opportunity fund.
                    ``(B) The entity classification of the qualified 
                opportunity fund, such as whether such fund is a 
                partnership, C corporation, S corporation, or real 
                estate investment trust.
                    ``(C) Certification that the purpose of the 
                qualified opportunity fund is investing in qualified 
                opportunity zone property.
                    ``(D) The total assets held by the qualified 
                opportunity fund determined as of each measurement date 
                in the reporting period.
                    ``(E) The aggregate amount of each of the following 
                which is held in the qualified opportunity fund as of 
                each measurement date in the reporting period:
                            ``(i) Qualified opportunity zone stock.
                            ``(ii) Qualified opportunity zone 
                        partnership interests.
                            ``(iii) Qualified opportunity zone business 
                        property.
                    ``(F) As of each measurement date in the reporting 
                period, the aggregate amount of investments in the 
                qualified opportunity fund which are described in 
                section 1400Z-2(e)(1)(A)(i) and the ratio of such 
                investments to all investments in such fund.
            ``(2) Information regarding qualified opportunity zone 
        corporations and partnerships.--With respect to each 
        corporation or partnership any qualified opportunity zone stock 
        or qualified opportunity zone partnership interest of which is 
        held by the qualified opportunity fund:
                    ``(A) The name, address, and TIN of each such 
                corporation or partnership.
                    ``(B) Certification that such corporation or 
                partnership satisfies each of the requirements of 
                subclauses (I), (II), and (III) of section 1400Z-
                2(d)(2)(B)(i) or clauses (i), (ii), and (iii) of 
                section 1400Z-2(d)(2)(C) (as the case may be) with 
                respect to the qualified opportunity fund.
                    ``(C) The total investment by the qualified 
                opportunity fund in such corporation or partnership 
                determined as of each measurement date in the reporting 
                period.
                    ``(D) The percentage of stock in such corporation, 
                or interest in such partnership (as the case may be) 
                which is held by the qualified opportunity fund 
                (determined separately on the basis of both vote and 
                value) as of each measurement date in the reporting 
                period.
            ``(3) Information regarding qualified opportunity zone 
        businesses.--With respect to each trade or business carried on 
        by any corporation or partnership referred to in paragraph (2) 
        and each trade or business with respect to which the qualified 
        opportunity fund holds qualified opportunity zone business 
        property (and determined as of each measurement date in the 
        reporting period):
                    ``(A) The principal line of business of the trade 
                or business.
                    ``(B) With respect to any real property used in 
                such trade or business--
                            ``(i) the address of such real property,
                            ``(ii) whether such real property is owned 
                        or leased by such corporation, partnership, or 
                        fund,
                            ``(iii) the square footage of any buildings 
                        which are part of such real property,
                            ``(iv) the number of residential units 
                        which are part of such real property, and the 
                        number of such units which are rental units, 
                        and
                            ``(v) to the extent known by such 
                        corporation, partnership, or fund, the number 
                        of residential rental units that are part of 
                        such property which are occupied by individuals 
                        whose income is 50 percent or less of area 
                        median gross income (within the meaning of 
                        section 42(g)(1)(A)).
                    ``(C) With respect to any property held by such 
                corporation, partnership or fund, and used in such 
                trade or business, the qualified opportunity zone in 
                which such property is primarily used and the aggregate 
                value of the investment in such property used in such 
                zone, separately stated with respect to each of the 
                following categories of property (and separately stated 
                with respect to each such category on the basis of 
                whether such property is owned or leased):
                            ``(i) Real property (including improvements 
                        to real property).
                            ``(ii) Improvements to real property.
                            ``(iii) Tangible personal property.
                            ``(iv) Intangible property (excluding 
                        leases of real or tangible personal property).
                            ``(v) Any other property.
                    ``(D) The number of employees (stated in full-time 
                equivalents) employed in such trade or business.
            ``(4) Other information.--Such other information as the 
        Secretary may reasonably require.
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) In general.--Any term used in this section which is 
        also used in subchapter Z of chapter 1 shall have the meaning 
        given such term in such subchapter.
            ``(2) Measurement date.--The term `measurement date' 
        means--
                    ``(A) the date referred to in subparagraph (A) of 
                section 1400Z-2(d)(1), and
                    ``(B) the date referred to in subparagraph (B) of 
                such section.
            ``(3) Reporting period.--The term `reporting period' means 
        the taxable year for which the report under this section is 
        made.
    ``(d) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out the purposes of this section, 
including the time and manner of filing the return required under 
subsection (a).
    ``(e) Public Availability of Returns.--Annual returns filed under 
this section shall be made available by the Secretary to the public as 
soon as practicable in a machine readable format. Prior to making any 
return available to the public under this subsection, the Secretary 
shall redact any individual's TIN which appears in such return.''.
    (b) Penalty for Failure To File Complete and Correct Return.--
Section 6652 of such Code is amended by adding at the end the following 
new subsection:
    ``(q) Failure of Qualified Opportunity Fund To File Correct 
Information Return.--In the case of a qualified opportunity fund's 
failure to file a complete and correct return under section 6039K at 
the time and in the manner prescribed therefor, unless it is shown that 
such failure is due to reasonable cause and not to willful neglect, 
there shall be paid (upon notice and demand by the Secretary and in the 
same manner as tax) by such fund $500 for each day during which such 
failure continues. The maximum penalty under this subsection on 
failures with respect to any 1 return shall not exceed $200,000.''.
    (c) Collection and Availability of Statistical Information.--The 
Secretary of the Treasury, or the Secretary's designee shall--
            (1) collect and compile statistical information with 
        respect to each qualified opportunity zone, including the 
        number of qualified opportunity funds that have made an 
        investment in each qualified opportunity zone, the aggregate 
        amount of investment in each zone by qualified opportunity 
        funds, and such other metrics concerning job creation, poverty 
        reduction, and community and economic development that the 
        Secretary considers appropriate, and
            (2) make such information available to the public on an 
        annual basis.
    (d) Effective Date.--The amendments made by this section shall 
apply to reports for taxable years ending after the date of the 
enactment of this Act.
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