Despite much hoopla and anticipation, 2021 ended without President Biden’s signature legislation – the Build Back Better Act (BBBA) – obtaining congressional approval. For better or worse, that also meant a number of tax reforms that would have materially impacted the U.S. private funds industry were tabled, although many are expected to be reintroduced in future tax legislation. 2021 still introduced a number of tax-related changes in the U.S. that are likely to reverberate throughout 2022, making it all the more necessary that PE sponsors keep their proverbial fingers on the pulse of matters. In this first article in a two-part series, the Private Equity Law Report interviewed Proskauer partner Amanda H. Nussbaum on relevant tax provisions from the BBBA that could be reintroduced in 2022, as well as the ongoing impact of the final regulations on carried interest and IRS audit activities. The second article will include Nussbaum’s observations on relevant employment-related 2021 tax developments in the U.S., as well as insights from Proskauer partner Stephen Pevsner on the U.K. government’s decision not to increase capital gains tax rates – including as they apply to carried interest – and its introduction of the new U.K. asset holding company regime. See “Hot Tax Topics for Private Fund Investors and Managers” (Mar. 2, 2021); and “EY Partner Outlines Significant PE Tax Trends and Effect of Recent Reforms” (May 5, 2020).