### Question
Can you define what recognition period means?


### Answer
**Recognition period** is defined as the following in *26 U.S.C. § 1374*:

> the 5-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**

