21:15
Feel like I can finally stop holding my breath!! Whew!!!
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LSDefine
Simple English definitions for legal terms
tax-anticipation bill
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A quick definition of tax-anticipation bill:
A tax-anticipation bill is a type of short-term loan that the U.S. government uses to manage its cash flow. It helps the government pay for things it needs to do before it receives all of its tax revenue. Companies can also use these bills to pay their taxes. They can buy the bills at their face value and use them to make quarterly tax payments. Tax-anticipation bills are also known as TABs.
A more thorough explanation:
A tax-anticipation bill is a type of short-term debt issued by the U.S. Treasury to help the government manage its cash flow needs. These bills are typically issued in anticipation of future tax revenues that the government expects to receive.
Corporations can use tax-anticipation bills to make quarterly tax payments. They can tender these bills at their par value, which means they can use them to pay their taxes without having to pay any additional fees or interest.
For example, let's say a corporation owes $10,000 in taxes for the quarter. Instead of paying the full amount in cash, they can purchase a tax-anticipation bill from the U.S. Treasury for $10,000. They can then use this bill to pay their taxes without incurring any additional costs.
Tax-anticipation bills are a useful tool for the government and corporations to manage their cash flow needs. By issuing these bills, the government can ensure that it has enough money to meet its obligations, while corporations can use them to pay their taxes without having to tie up their cash reserves.