IRS CHIEF COUNSEL ISSUES GO ZONE GUIDANCE

Tuesday, April 3, 2007 - 7:30AM

The Internal Revenue Service (IRS) Chief Counsel Office issued a notice outlining limited relief for satisfying the requirements for making a carryover allocation of low-income housing tax credit (LIHTC) amounts under Internal Revenue Code §42 (h)(1)(E) or (F) in the Gulf Opportunity Zone (GO Zone) by the close of the 2006 calendar year. CC-2007-010 explains that the IRS learned that a state in the GO Zone encountered administrative difficulties in making allocations from its LIHTC cap for the 2006 calendar year and given the unique nature of the problems in the GO Zone and the administrative complexities associated with the initial allocation of LIHTC from the cap, the IRS says it will consider carryover allocations intended to be made from the 2006 cap that satisfy IRC §1.42-6(d)(2)(i) through (x), but were signed and dated by January 31, 2007, as having been made by the close of the 2006 calendar year.
To discuss the progress of the rebuilding efforts in the GO Zone, join Novogradac & Company LLP in New Orleans May 15-16 at the GO Zone Forum.

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