### Question
How is the "recognition period" defined?


### Answer
The term **recognition period** is defined in *26 U.S.C. § 1374* as follows -

> the 10-year period beginning with the 1st day of the 1st taxable year for which the corporation was an S corporation

#### Citation:
  - *26 U.S.C. § 1374*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter S-Tax Treatment of S Corporations and Their Shareholders > PART III-SPECIAL RULES**

