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confusion and uncertainty to the law, while the statutory history
shows an intention by Congress to provide certain tax benefits to
savings and loan institutions while denying them to banks. By
incorporating a definition or “meaning” into the statute,
Congress attempted to draw the line, while recognizing that
different terminology was used in different State laws and under
different State regulatory or supervisory structures.
Petitioner’s strategic decision to expand its market share
in Florida was undertaken with the knowledge that the acquisition
of thrift institutions would require their conversion to banking
corporations under Florida law. As the U.S. Supreme Court has
often stated: “while a taxpayer is free to organize his affairs
as he chooses, nevertheless, once having done so, he must accept
the tax consequences of his choice, whether contemplated or
not, * * * and may not enjoy the benefit of some other route he
might have chosen to follow but did not.” Commissioner v. Natl.
Alfalfa Dehydrating & Milling Co., 417 U.S. 134, 149 (1974).
Based on the statutory framework and relevant legislative
history, we conclude that a financial institution chartered as a
bank cannot meet the threshold requirements of section
7701(a)(19). Therefore, because Pinellas and Southwest were
chartered as banks under Florida law, petitioner is not entitled
to use the reserve method of accounting for bad debts under
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