Investor Glossary-tax liabilityInvestor Glossary-tax liabilityInvestor Glossary-tax liabilityInvestor Glossary-tax liabilityInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Tax Liability

The HTML to link to this page
 

A tax liability is simply a legal claim on assets or income. Liability is anything owed to another entity, whether that entity is an individual, organization, or government. Therefore, a tax liability is the tax owed by an individual or organization to an authority entity. A tax liability is not paid at the point at which it is created; it becomes a responsibility to be paid in the future. Tax liability is calculated by applying the current tax rate to what is called a taxable event. A taxable event includes the sale of an asset, inheritance and annual income. A tax liability is considered a short-term liability. Failure to satisfy a tax liability could result in legal action such as financial penalties, garnishment of wages, or foreclosure on a particular asset. A tax liability can be satisfied with estimated, periodic tax payments, withholdings from income, or a fiscal year-end payment accompanying tax forms.



Rate this Tax Liability definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, FTSE, EBITDA, FICO score, 401a, reverse mortgage, liquidity ratio, average price per share, phantom income, cancelled check, 144a, retained earnings, inflation, class C shares, LIBOR, diluted share, Key Rate Duration, APR, command economy, minority interest, option premium, balance sheet, ex-dividend, VIX, stock split, risk management, debt service coverage, implied volatility, real GDP, deferred revenue, 1035 exchange, required rate of return, quality assurance, covered put, stock market close, ex-dividend date, labor relations, annual return, Zero Cost Collar, current ratio, dividends payable, 1031 exchange, limit order, open position, per diem, margin rate, irrevocable trust, deferred tax, wholly-owned subsidiary


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use