Tax anticipation notes (TANs) must be reported as current liabilities of the governmental funds in which the related revenues will be reported, as well as in the government-wide statements.

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Tax Anticipation Notes (TANs) are short-term debt instruments issued by a government entity, expected to be repaid with imminent tax receipts. In governmental accounting, they are reported as current liabilities in both the governmental funds (where the anticipated revenues will be recognized) and in the government-wide financial statements, reflecting the obligation to repay the debt within the current fiscal period or shortly thereafter.

Tax Anticipation Notes (TANs) Must Be Reported as Current Liabilities