Good evening,

Have any other clubs had issues with the IRS incorrectly classifying them as a 'Qualified Opportunity Fund'? Our club received an IRS penalty assessment for 'Failure to Maintain Investment Standard for a Qualified Opportunity Fund'. Our club has never certified as such...there is a separate form to file for that designation and we have never filed that specific form.

Bivio has let us know that a few other clubs received the same penalty a few years ago, and I was hoping I could reach them through Club Cafe. Is anyone familiar with the topic or provide any advice on how you worked with the IRS to dispute the penalty (if your club was charged)?

Our club disbanded this year, so we are also wondering if it's related to a timing issue of the records that the IRS has received for our final return. We've filed a final partial year 1065 by paper, but we're not sure if the IRS has received our 1099-B sale info from our broker Charles Schwab.

Please let me know if your club has any familiarity with this issue with the IRS. Thank you!

I had this problem a few years ago and went round and round (if and when I could get thru to them) until I found out about a form 911 (really) that gets processed by the IRS advocates who will listen more carefully to your problem. They investigate and represent your case to “ the right people.” In our case, we/they found an incorrect data entry (theirs, not mine) that was the source of the error.
--- ‘Tis me... Larry Stearns

> On Oct 14, 2024, at 9:47 PM, Samantha Borchers (53) via bivio.com <user*36421900001@bivio.com> wrote:
>
> Good evening,
>
> Have any other clubs had issues with the IRS incorrectly classifying them as a 'Qualified Opportunity Fund'? Our club received an IRS penalty assessment for 'Failure to Maintain Investment Standard for a Qualified Opportunity Fund'. Our club has never certified as such...there is a separate form to file for that designation and we have never filed that specific form.
>
> Bivio has let us know that a few other clubs received the same penalty a few years ago, and I was hoping I could reach them through Club Cafe. Is anyone familiar with the topic or provide any advice on how you worked with the IRS to dispute the penalty (if your club was charged)?
>
> Our club disbanded this year, so we are also wondering if it's related to a timing issue of the records that the IRS has received for our final return. We've filed a final partial year 1065 by paper, but we're not sure if the IRS has received our 1099-B sale info from our broker Charles Schwab.
>
> Please let me know if your club has any familiarity with this issue with the IRS. Thank you!