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.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.