### Question
How does the law define consistency period?


### Answer
Under *26 U.S.C. § 338*, **consistency period** is defined as:

> the period consisting of—



(i) the 1-year period before the beginning of the 12-month acquisition period for the target corporation,



(ii) such acquisition period (up to and including the acquisition date), and



(iii) the 1-year period beginning on the day after the acquisition date

#### Citation:
  - *26 U.S.C. § 338*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART II-CORPORATE LIQUIDATIONS > Subpart B-Effects on Corporation**

