tax anticipation bill

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Related to tax anticipation bill: Tax Anticipation Notes

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.

tax anticipation bill (TAB)

A short-term U.S. Treasury obligation that is issued at a discount and that may be used at face value upon maturity or a few days before to pay a federal tax obligation. These securities appeal primarily to corporations and relatively large investors with significant tax obligations.