Tax anticipation bills

Also found in: Dictionary, Medical, Encyclopedia.

Tax anticipation bills (Tabs)

Special bills that the Treasury occasionally issues that mature on corporate quarterly income tax dates and can be used at face value by corporations to pay their tax liabilities.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Tax Anticipation Bill

A U.S. Treasury bill that an investor purchases at a discount from par and, upon maturity, uses the proceeds to pay a tax liability. Corporations and individuals with large tax liabilities are the main investors in tax anticipation bills. It should not be confused with a tax anticipation note.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved