§ 859. Adoption of annual accounting period

• (a) For purposes of this subtitle—
  • (1) a real estate investment trust shall not change to any accounting period other than the calendar year, and
  • (2) a corporation, trust, or association may not elect to be a real estate investment trust for any taxable year beginning after October 4, 1976 , unless its accounting period is the calendar year.
• (b) Notwithstanding section 442, an entity which has not engaged in any active trade or business may change its accounting period to a calendar year without the approval of the Secretary if such change is in connection with an election under section 856(c).