Taxpayers report investments made into Qualified Opportunity Funds (QOFs) by filing IRS Form 8949 (Sales and Other Dispositions of Capital Assets) along with Form 8997 (Initial and Annual Statement of Qualified Opportunity Fund Investments) attached to their annual federal income tax returns. Form 8997 must be filed every year to track the deferred capital gains, monitor the holding period milestones required for tax basis adjustments, and report any inclusion events or distributions throughout the lifespan of the investment.