{"abstract":"This document contains proposed regulations that provide guidance under section 1061 of the Internal Revenue Code (Code). Section 1061 recharacterizes certain net long-term capital gains of a partner that holds one or more applicable partnership interests as short-term capital gains. An applicable partnership interest is an interest in a partnership that is transferred to or held by a taxpayer, directly or indirectly, in connection with the performance of substantial services by the taxpayer, or any other related person, in any applicable trade or business. These proposed regulations also amend existing regulations on holding periods to clarify the holding period of a partner's interest in a partnership that includes in whole or in part an applicable partnership interest and/or a profits interest. These regulations affect taxpayers who directly or indirectly hold applicable partnership interests in partnerships and the passthrough entities in which the applicable partnership interest is held, directly or indirectly.","action":"Notice of proposed rulemaking.","agencies":[{"raw_name":"DEPARTMENT OF THE TREASURY","name":"Treasury Department","id":497,"url":"https://www.federalregister.gov/agencies/treasury-department","json_url":"https://www.federalregister.gov/api/v1/agencies/497","parent_id":null,"slug":"treasury-department"},{"raw_name":"Internal Revenue Service","name":"Internal Revenue Service","id":254,"url":"https://www.federalregister.gov/agencies/internal-revenue-service","json_url":"https://www.federalregister.gov/api/v1/agencies/254","parent_id":497,"slug":"internal-revenue-service"}],"body_html_url":"https://www.federalregister.gov/documents/full_text/html/2020/08/14/2020-17108.html","cfr_references":[{"chapter":null,"citation_url":null,"part":1,"title":26}],"citation":"85 FR 49754","comment_url":"http://www.regulations.gov/commenton/IRS-2020-0030-0001","comments_close_on":null,"correction_of":null,"corrections":[],"dates":"Written or electronic comments and requests for a public hearing must be received by October 5, 2020, which is 60 days after the date of filing for public inspection with the Office of the Federal Register. Requests for a public hearing must be submitted as prescribed in the \"Comments and Requests for a Public Hearing\" section.","disposition_notes":null,"docket_ids":["REG-107213-18"],"dockets":[{"supporting_documents":[],"agency_name":"IRS","documents":[{"comment_count":20,"comment_start_date":"2020-08-14","updated_at":"2025-02-10T00:55:22.959-05:00","comment_url":"https://www.regulations.gov/commenton/IRS-2020-0030-0001","allow_late_comments":true,"id":"IRS-2020-0030-0001","comment_end_date":"2020-10-06","regulations_dot_gov_open_for_comment":true}],"supporting_documents_count":0,"id":"IRS-2020-0030","title":"Guidance Under Section 1061 (REG-107213-18)"}],"document_number":"2020-17108","effective_on":null,"end_page":49795,"executive_order_notes":null,"executive_order_number":null,"explanation":null,"full_text_xml_url":"https://www.federalregister.gov/documents/full_text/xml/2020/08/14/2020-17108.xml","html_url":"https://www.federalregister.gov/documents/2020/08/14/2020-17108/guidance-under-section-1061","images":{},"images_metadata":{},"json_url":"https://www.federalregister.gov/api/v1/documents/2020-17108?publication_date=2020-08-14","mods_url":"https://www.govinfo.gov/metadata/granule/FR-2020-08-14/2020-17108/mods.xml","not_received_for_publication":null,"page_length":42,"page_views":{"count":5174,"last_updated":"2026-04-04 16:15:04 -0400"},"pdf_url":"https://www.govinfo.gov/content/pkg/FR-2020-08-14/pdf/2020-17108.pdf","presidential_document_number":null,"proclamation_number":null,"public_inspection_pdf_url":"https://public-inspection.federalregister.gov/2020-17108.pdf?1596744914","publication_date":"2020-08-14","raw_text_url":"https://www.federalregister.gov/documents/full_text/text/2020/08/14/2020-17108.txt","regulation_id_number_info":{"1545-BO81":{"issue":"202010","html_url":"https://www.federalregister.gov/regulations/1545-BO81/guidance-under-section-1061-","title":"Guidance Under Section 1061 ","xml_url":"http://www.reginfo.gov/public/do/eAgendaViewRule?pubId=202010&RIN=1545-BO81&operation=OPERATION_EXPORT_XML","priority_category":"Other Significant"}},"regulation_id_numbers":["1545-BO81"],"regulations_dot_gov_info":{"supporting_documents":[],"regulatory_plan":{"html_url":"https://www.federalregister.gov/regulations/1545-BO81/guidance-under-section-1061-","title":"Guidance Under Section 1061 "},"comments_count":20,"agency_id":"IRS","comments_url":"https://www.regulations.gov/docketBrowser?rpp=50&so=DESC&sb=postedDate&po=0&dct=PS&D=IRS-2020-0030","supporting_documents_count":0,"docket_id":"IRS-2020-0030","document_id":"IRS-2020-0030-0001","regulation_id_number":"1545-BO81","title":"Guidance Under Section 1061 (REG-107213-18)","checked_regulationsdotgov_at":"2025-02-11T01:55:04Z"},"regulations_dot_gov_url":"http://www.regulations.gov/commenton/IRS-2020-0030-0001","significant":true,"signing_date":null,"start_page":49754,"subtype":null,"title":"Guidance Under Section 1061","toc_doc":"Guidance under Section 1061","toc_subject":null,"topics":["Income taxes","Reporting and recordkeeping requirements"],"type":"Proposed Rule","volume":85}