BB&T (BBT) will record a hefty tax charge as it waits for the courts to resolve a longstanding dispute with the Internal Revenue Service.

The Winston-Salem, N.C., bank said Tuesday that it would record a charge of $281 million in the first quarter, though it intends to keep fighting the IRS in court. The company said that its tax reserve for this case could balloon to as much as $609 million, depending on next month's decision by the U.S. Court of Federal Claims.

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