Tax Anticipation Bill - TAB

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DEFINITION of 'Tax Anticipation Bill - TAB'

Unique bills sold at a discount and maturing within 23 to 273 days that the United States Treasury Department issues to investors. Since 1975, the Treasury has relied on the sale of cash management bills, rather than TABS, to raise money.

BREAKING DOWN 'Tax Anticipation Bill - TAB'

TABS and, now, cash management bills offer companies and/or investors a great way to set aside - and earn interest on - funds while allowing government proper cash inflow prior to the collection of tax revenues. This can make budgeting easier and allow for even greater financial diversity.

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