Definition of Tax Liability Account


Tax Liability Account means a memorandum account maintained by Holdings for each of its members. The initial balance of the Tax Liability Account for each such member is zero. At the end of each Fiscal Year, the Tax Liability Account is increased by the amount of the Assumed Tax Liability of such member for such year and decreased in the amount of the Assumed Tax Benefit of such member for the year. The Tax liability Account will also be decreased by any Tax Distributions to such member.
Sample 1

Examples of Tax Liability Account in a sentence

At the end of each fiscal year, the Tax Liability Account must be increased in the amount of the Assumed Tax Liability of the Member for such year and must be decreased in the amount of the Assumed Tax Benefit of such Member for the year.
The Tax Liability Account will also be decreased by any Tax Distributions to the Member.
Notwithstanding the foregoing provisions of this Section 3.4, to the extent of Net Cash Flow available for distribution, the Company will use its best efforts to make annual Tax Distributions by April 15 of each year, equal to the positive balances in each Members Tax Liability Account (determined pursuant to Section 3.4(c)(ii)).
A tax liability account (the Tax Liability Account) must be maintained for each Member.
LCC, L.L.C. has approximately 482,000 in its Accrued State and Local Tax Liability Account at September 30, 1997.