### Question
How is the term consistency period defined?


### Answer
The term **consistency period** is defined in *26 U.S.C. § 338* as the following:

> 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**

