Tax Anticipation Bill (TAB)

Short-term obligation issued by the U.S. Treasury in competitive bidding at maturities ranging from 23 to 273 days. TABs typically come due within five to seven days after the quarterly due dates for corporate tax payments, but corporations can tender them at Par value on those tax deadlines in payment of taxes without forfeiting interest income. Since 1975, TABs have been supplemented by cash management bills, due in 30 days or less, and issued in minimum $10 million blocks. These instruments, which are timed to coincide with the maturity of existing issues, provide the Treasury with additional cash management flexibility while giving large investors a safe place to park temporary funds.