The IRS will be sending out letters related to Qualified Opportunity Funds (QOF) in April.
You may have received the letter due to missing information.
What is Qualified Opportunity Fund?
Taxpayers who attached Form 8996 (QOF) to their tax return may get Letter 6501. This letter is a QOF Investment Standard. Additional details can be found here.
The letter is to let the taxpayer know that additional information is necessary to support the annual certification of the investment standard is missing or invalid.
This letter also serves as a warning that if they want to keep their certification as a QOF, then they need to take action.
In order to correct the error, you should file an amended return or administrative adjustment request (AAR). If you get the letter but fail to act on it, the IRS could refer the tax account for examination.
You may also get Letter 6502 or Letter 6503, both are related to QOF. If action isn’t taken, you may owe taxes, interest, and penalties in addition to the examination.
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