Prior to 2017, a taxpayer receiving a "carried interest" in a partnership could generally receive long-term capital gain treatment on a sale or redemption of such interest, provided that the taxpayer held the interest for at least one year. In 2017, as part of P.L. 115-97, commonly known as the Tax Cuts and Jobs Act, Congress enacted new Section 1061 of the Internal Revenue Code, which significantly changed these rules. The statute contained some significant uncertainties, which Treasury has now mostly addressed in newly issued proposed regulations.