Yes, there's a penalty. It's calculated by taking the amount of the shortfall below 90% and multiplying by the IRS underpayment rate. If you want to look more at the mechanics of this, check out IRS Form 8996, Part IV.
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What happens if my QOF fails to meet the 90% test?
Can I get a penalty? How is that calculated?
Answers
If a QOF fails the 90% test, it must compute and pay a penalty with its tax return.
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