Yes I did read Diane's suggestion but that is not an option in this case since Turbo Tax does not support 8997. As far as not reporting, according to the 8997 instructions, under who must file, it clearly states "An eligible taxpayer holding a QOF investment at any point during the tax year must file Form 8997 with the taxpayer's timely filed federal income tax return (including extensions)."
When you read the section the Purpose of the Form, it states The Tax Cuts and Jobs Act (TCJA), section 13823, added section 1400Z-1 to provide for the designation of certain census tracts as qualified opportunity zones (QOZs) and added section 1400Z-2 to provide certain benefits for investments in these QOZs through investment in qualified opportunity funds (QOFs). Taxpayers that invest in QOZ property through a QOF can defer the recognition of certain gains." I guess the question stems from the fact if you are deferring recognition of certain gains or are you declaring all of your gains as income.
At this point, this is more of a legal interpretation and a decision you must make on whether or not to report it. This is your call to make but I suggest reporting it just to avoid any repercussions that this may cause. I have given you the source document to base your decision and the choice is up to you.
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