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LIBERTY
COLONIAL CRABBE HUSON NEWPORT STEIN ROE ADVISOR
May 16, 2000
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Liberty Funds Trust IV (the "Trust")
Colonial Tax-Exempt Fund (the "Fund")
File Nos. 811-2865 & 2-62492
Dear Sir/Madam:
Pursuant to the requirements of Rule 497(e), submitted for filing via EDGAR is
the form of a Prospectus Supplement dated May 16, 2000, which is now being used
in connection with the public offering and sale of shares of the Fund. Please be
advised that the Fund's Statement of Additional Information and Annual Report
(each of which was filed via EDGAR) have not been revised since the date of the
last filing.
Sincerely,
Colonial Tax-Exempt Fund
/s/William Ballou
William Ballou
Assistant Secretary
Enclosures
cc: M. Muller (Ropes & Gray)
J. DiMaria (PWC)
Deborah Young (2)
Ronnie Wallace
Bill Loring
Gary Swayze
Brian Hartford
Blue Sky
<PAGE>
COLONIAL TAX-EXEMPT FUND
Supplement to Prospectus dated April 1, 2000
The first paragraph under the caption Primary Investment
Strategies for the Colonial Tax-Exempt Fund in the Fund's Prospectus is revised
as follows:
Under normal market conditions, the Fund invests at least 65% of its total
assets in tax-exempt bonds that are rated investment grade, which means that
they are rated at least BBB (or Baa) by a nationally recognized rating agency.
The Fund's investment advisor may purchase bonds of any maturity.
TEF-36/434B-0500 May 16, 2000
