26 U.S.C. § 859 — Adoption of annual accounting period

Page 2010 TITLE 26—INTERNAL REVENUE CODE § 859 (Added Pub. L. 86–779, § 10(a), Sept. 14, 1960, 74 Stat. 1008; amended Pub. L. 94–455, title XVI, §§ 1604(h), title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1752, 1834; Pub. L. 99–514, title VI, §§ 665(b)(2), 668(b)(1)(B), Oct. 22, 1986, 100 Stat. 2304, 2307; Pub. L. 100–647, title I, § 1018(u)(27), Nov. 10, 1988, 102 Stat. 3591; Pub. L. 113–295, div. A, title II, § 220(m), Dec. 19, 2014, 128 Stat. 4036.) Editorial Notes AMENDMENTS 2014—Subsec. (b). Pub. L. 113–295 substituted ‘‘857(b)(9)’’ for ‘‘857(b)(8)’’. 1988—Subsec. (b). Pub. L. 100–647, § 1018(u)(27), made technical correction to directory language of Pub. L. 99–514, see 1986 Amendment note below. 1986—Subsec. (b). Pub. L. 99–514, § 668(b)(1)(B), as amended by Pub. L. 100–647, § 1018(u)(27), substituted ‘‘Except as provided in section 857(b)(8), amounts’’ for ‘‘Amounts’’. Subsec. (c). Pub. L. 99–514, § 665(b)(2), inserted ‘‘(or mailed to its shareholders or holders of beneficial in- terests with its annual report for the taxable year)’’. 1976—Subsec. (a). Pub. L. 94–455, §§ 1604(h), 1906(b)(13)(A), inserted ‘‘(and specifies in dollar amounts)’’ after ‘‘to the extent the trust elects in such return’’ and substituted ‘‘paid only during such taxable year’’ for ‘‘paid during such taxable year’’, and struck out ‘‘or his delegate’’ after ‘‘Secretary’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title. EFFECTIVE DATE OF 1986 AMENDMENT Amendment by section 665(b)(2) of Pub. L. 99–514 ap- plicable to taxable years beginning after Dec. 31, 1986, and by section 668(b)(1)(B) of Pub. L. 99–514 applicable to calendar years beginning after Dec. 31, 1986, see sec- tion 669 of Pub. L. 99–514, set out as a note under sec- tion 856 of this title. EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by section 1604(h) of Pub. L. 94–455, see section 1608(d) of Pub. L. 94–455, set out as a note under section 856 of this title. EFFECTIVE DATE Section applicable with respect to taxable years of real estate investment trusts beginning after Dec. 31, 1960, see section 10(k) of Pub. L. 86–779, set out as a note under section 856 of this title. § 859. Adoption of annual accounting period (a) General rule 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 cal- endar year. Paragraph (2) shall not apply to a corporation, trust, or association which was considered to be a real estate investment trust for any taxable year beginning on or before October 4, 1976. (b) Change of accounting period without ap- proval 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). (Added Pub. L. 94–455, title XVI, § 1604(i)(1), Oct. 4, 1976, 90 Stat. 1752, § 860; renumbered § 859 and amended Pub. L. 95–600, title III, § 362(d)(6), title VII, § 701(t)(1), Nov. 6, 1978, 92 Stat. 2852, 2911; Pub. L. 99–514, title VI, § 661(c), Oct. 22, 1986, 100 Stat. 2300.) Editorial Notes PRIOR PROVISIONS A prior section 859, added Pub. L. 94–455, title XVI, § 1601(a)(1), Oct. 4, 1976, 90 Stat. 1742; amended Pub. L. 95–600, title VII, § 701(t)(4), Nov. 6, 1978, 92 Stat. 2912, re- lated to a deduction for deficiency dividends, prior to repeal by Pub. L. 95–600, title III, § 362(d)(6), Nov. 6, 1978, 92 Stat. 2852. See section 860 of this title. AMENDMENTS 1986—Pub. L. 99–514 designated existing provisions as subsec. (a) and added subsec. (b). 1978—Pub. L. 95–600, § 701(t)(1), designated existing provisions as par. (1), substituted ‘‘change to any ac- counting period’’ for ‘‘change to or adopt any annual accounting period’’, and added par. (2) and provision for nonapplicability of par. (2) to a real estate investment trust for any taxable year beginning on or before Oct. 4, 1976. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, see section 669 of Pub. L. 99–514, set out as a note under section 856 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Repeal of prior section 859 of this title and redesigna- tion of section 860 of this title as this section by sec- tion 362(d)(6) of Pub. L. 95–600 applicable with respect to determinations (as defined in section 860(e) of this title) after Nov. 6, 1978, see section 362(e) of Pub. L. 95–600, set out as an Effective Date note under section 860 of this title. Pub. L. 95–600, title VII, § 701(t)(5), Nov. 6, 1978, 92 Stat. 2912, provided that: ‘‘The amendments made by this subsection [amending this section and sections 275, 856, 6212, and 6501 of this title] shall take effect on Octo- ber 4, 1976.’’ PART III—PROVISIONS WHICH APPLY TO BOTH REGULATED INVESTMENT COMPA- NIES AND REAL ESTATE INVESTMENT TRUSTS Sec. 860. Deduction for deficiency dividends. § 860. Deduction for deficiency dividends (a) General rule If a determination with respect to any quali- fied investment entity results in any adjust- ment for any taxable year, a deduction shall be allowed to such entity for the amount of defi- ciency dividends for purposes of determining the deduction for dividends paid (for purposes of sec- tion 852 or 857, whichever applies) for such year.