Ann M. Lassiter and Estate of Henry A. Lassiter - Page 10




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          characterize the type of obligation imposed by the subsection by            
          using the word “shall”.  Congress’ use of the word “shall”                  
          relates to the essence of the statutory provision itself, and,              
          when viewed in light of the statute as a whole, imposes a                   
          mandatory directive on the debtor in applying the relevant                  
          attributes.  Alabama v. Bozeman, 533 U.S. 146, ___, 121 S. Ct.              
          2079, 2085 (2001); Estate of La Sala v. Commissioner, 71 T.C.               
          752, 762-763 (1979) (“the word ‘shall’ is the single most                   
          important textual consideration in evaluating whether compliance            
          with a statutory provision is mandatory or directory”).  Second,            
          Congress chose to use the term “succeed to” with no limitation on           
          the succession.  The ordinary meaning of the term in this context           
          is to take next in time or to follow in succession (e.g., the               
          acquisition of rights from another).  Webster’s II New Riverside            
          University Dictionary 1156 (1994); Black’s Law Dictionary 1431              
          (6th ed. 1990).                                                             
               Third, and most importantly, the text of the phrase mandates           
          that the “debtor” be the person who succeeds to and takes into              
          account any NOLs from the bankruptcy estate.  We think that                 
          Congress’s use of the word “debtor”, rather than the term                   
          “taxpayer” that is normally used in the Code, is significant.               
          The word “debtor” in the bankruptcy context is a term of art that           
          the Bankruptcy Code defines specifically as any “person or                  
          municipality concerning which a case under this title has been              






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